Accountant burnout

Everyone’s talking about burnout. In fact, the importance of mental health was the topic of a keynote at last week’s Intuit Accountants Tax Season Readiness virtual conference (catch the replay if you missed it). With the busy tax season approaching, now is the time to prepare with tips like setting boundaries, delegating tasks and practicing mindfulness to stay balanced and productive. 

In Today's Newsletter:

• Q&A: Hiring and hanging on to great people
• Erica Goode, CPA, perfects a 15-hour workweek
• Ohio nixes 150 credit hours requirement for CPA licensure
• IRS finalizes rules on basis-shifting in partnerships

Standing out in the competitive talent market

Attracting and retaining talent has been a top priority for firms of all sizes in the AICPA’s annual Private Company Practice Section survey for, well, as long as most of us can remember. But the problem isn’t going away.

Jacqueline Lombardo, MHR, operations manager and head of human resources for Boomer Consulting, Inc., has plenty of experience hiring and holding on to good people. In addition to overseeing the company’s HR strategy, she co-facilitates several communities, including the Boomer Talent Circle, a network for talent professionals in accounting firms.

Lombardo sat down with The Net Gains to share her best advice for accounting firms that want to attract and retain talent in an incredibly competitive job market.

What are the most effective recruitment strategies accounting firms can use to stand out to top-tier talent in today’s competitive market?

Accounting firms can stand out by creating an engaging and transparent recruitment process and emphasizing their unique culture, values and growth opportunities. But there’s no one-size-fits-all approach — firms need to adjust their strategies depending on the position and level of the role.

Establish a talent pipeline by building relationships with universities and early-career professionals to fill entry-level positions. For mid-level and senior roles, networking within professional associations, leveraging employee referrals and tapping into specialized job boards or headhunters may be more appropriate.

How can accounting firms create a compelling employee value proposition (EVP) that appeals to both new recruits and existing staff?

A compelling EVP emphasizes the firm’s commitment to career growth, work-life balance and inclusivity. It should communicate the firm's mission, values and personal and professional development opportunities. For new recruits, highlight advancement pathways and learning opportunities. For existing staff, focus on recognition, internal mobility and work flexibility. Tailoring the EVP to different groups shows the firm is invested in employee success.

What role does workplace flexibility, such as remote or hybrid work arrangements, play in attracting and retaining talent in the accounting profession?  

Workplace flexibility is critical for attracting and retaining talent in accounting. Remote and hybrid work arrangements and flexible hours allow employees to balance their professional and personal lives, which is appealing to people seeking better work-life integration. However, flexibility is a balancing act. Firms must set clear expectations and create a win-win situation for employees and the firm. When managed well, workplace flexibility leads to happier, more engaged employees who are more likely to produce higher-quality work.

Changing the conversation around mental health in accounting

Burnout is one of the accounting profession’s biggest challenges, and Amy Vetter, CPA, CITP, GCMA, isn’t letting it slide. In an article for CPA Practice Advisor, Vetter argues we’ve normalized burnout by labeling it as part of "busy season" or an inevitable part of public accounting. But the lost talent, strained client relationships and declining innovation it creates are too significant to ignore. Vetter emphasizes that traditional stress management techniques only address symptoms — not the systemic issues causing burnout.

Preventing burnout isn’t an individual exercise. It requires company-wide changes. That’s why forward-thinking firms are redesigning workflows, creating specialized teams for peak periods and adopting strategies like work sprints followed by recovery periods. Leaders who model sustainable work practices, respect off-hours and foster open conversations about stress and workload protect their teams and create a foundation for long-term growth.

Why this matters: Accounting isn’t just about numbers — it’s about people. The well-being of your team directly impacts client satisfaction and the sustainability of your firm. Burnout doesn’t just cost you morale; it’s a financial drain. Implementing systemic changes creates a healthier work environment and secures your firm’s future. (CPA Practice Advisor)

Ever wonder what other accountants are earning?

Our friends over at Big4Transparency.com know. With data from over 18,000 accounting professionals, it’s the largest crowdsourced salary database in North America. Whether you’re curious about how your pay stacks up or just want a clearer view of career progression, this resource is here to help.

On the Big 4 Transparency podcast, host Dom Piscopo dives even deeper. On the Jan. 16 episode, he’ll be joined by Seth Fineberg, a leader in accounting media, to discuss how media shapes the industry, the rise of AI and private equity’s influence on accounting firms.

Find out more at Big4Transparency.com, subscribe to their newsletter and listen to the latest episode on Spotify and Apple Podcasts.

Speaking of burnout…

In a recent episode of the Profitable Women podcast, host Sheila Hansen, CPA, interviewed fellow CPA Erica Goode about how she manages a 15-hour work week. Goode shares how she left her 9-to-5 in corporate accounting and built a business aligned with her personal priorities. By maintaining a smaller client base, implementing efficient processes and setting firm boundaries, Goode found time to grow her business at her own pace while prioritizing family and personal growth.

Why this matters: Success isn’t one-size-fits-all. It’s refreshing to hear from someone building a sustainable and fulfilling career in a profession that often glorifies relentless ambition and overwork. (Profitable Women)

Is this the golden age of accounting? Eddy Gramajo, CPA, explains on TikTok why accounting jobs are booming and wages are climbing. AI might be able to write emails, but it apparently can’t prevent restatements and SEC inquiries. 

QuickBooks offers a sneak peek of the year ahead. Innovative tools, faster workflows and AI that actually helps? Sign us up. While we might complain about annual fee increases, we can’t deny Intuit is constantly innovating, and the updates coming in 2025 look pretty good.

Fee negotiations got you stressed? Here are some tips for handling client pushback on fees to maintain client relationships, safeguard your margins AND keep up team morale.

BRB, LFG with the CFPB. The Consumer Financial Protection Bureau wants gamers to weigh in on how in-game currencies and accounts are evolving into quasi-banking systems. They’re asking consumers to share their experiences by March 31, 2025, to help clarify consumer rights under the Electronic Funds Transfer Act. It could be a game-changer for financial protection in the virtual world.

$270,214

The salary the average American employee deems as the threshold for success. (Empower)

• Mark Your Calendar: Tax season kicks off Jan. 27, IRS announces
• Transparency Battle: Big 4 fight metrics exposing staff burdens
• Who’s the Best: Accounting marketing award takes nomination
• IRS Funding: NTA urges Congress to maintain tax agency’s budget
• CPA Licensure: Ohio drops 150-hour rule for new licensure path

IRS issues final regulations targeting partnership-related basis-shifting transactions

Transactions of interest (TOIs) often involve related parties using tax-free property distributions or partnership interest transfers to generate substantial basis increases — sometimes as high as $25 million — without triggering corresponding tax liabilities. Under the new regulations, taxpayers and material advisers involved in such transactions must comply with disclosure requirements, making it easier for the IRS to identify and address potential abuse.

The regulations are part of a broader IRS initiative to close tax loopholes and improve enforcement, with an estimated $50 billion in additional revenue expected over the next decade.

Why this matters: These regulations bring big changes in compliance obligations for accountants working with partnerships. Make sure you understand the nuances of TOI reporting and disclosure requirements to protect clients (and yourself) from penalties. The higher dollar thresholds and extended filing windows provide some relief, but the focus on basis-shifting emphasizes the IRS’s intent to crack down on tax avoidance strategies. (Journal of Accountancy)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

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The Net Gains is edited by Bianca Prieto.