The accountant shortage is a growing concern across all industries, but its impact is particularly felt in construction. Accountants play a crucial role in ensuring financial accuracy and compliance. Their absence in the construction industry can lead to significant operational challenges.
This unfortunate trend of accountants quitting in record numbers affects remaining accountants, who face increased workloads and stress as well as cripple companies who rely on their expertise.
As more accountants leave their positions, construction companies find it increasingly difficult to manage their payroll processes effectively.
As a result, more construction companies turn to all-in-one accounting software to get halfway across the finish line when payroll hits. Let’s look at the accountant shortage in our industry and how ConstructionPayroll.com can help you overcome this significant obstacle.
The Accountant Shortage
Several factors have led to the mass exodus of accountants, tarnishing several industries’ payrolls.
Low Accountant Salaries
No matter your position, money matters. Even though accountants work with money daily, most do not earn enough of it to make the job worth it. With an average of 65K per year, many accountants feel that their compensation does not reflect the complexity and importance of their work. This feeling of unappreciation leads to dissatisfaction and a higher turnover rate.
Mundane and Long Hours Under Pressure
The routine nature of accounting tasks can lead to boredom and a lack of motivation, pushing professionals to seek more engaging opportunities.
Even with mundane tasks, the demanding hours required to meet deadlines and regulatory requirements also contribute to burnout and a desire for a better work-life balance.
Accountants regularly face mounting pressure to comply with ever-changing regulations, adding to their stress and workload.
Accountant Burnout
The combination of long hours, repetitive tasks, and high pressure often leads to burnout, prompting accountants to leave their positions within 3-5 years.
The stress associated with accounting can lead to mental health issues and, in some cases, substance abuse, further exacerbating the turnover problem and contributing to the increasing 50 million people every year impacted by mental health concerns.
Lack of Advancement Opportunities
Limited career growth prospects can demotivate accountants, causing them to seek opportunities in other fields.
Additionally, there is a noticeable decline in the number of people pursuing degrees in accounting. The collapse of the CPA candidate pipeline means fewer qualified professionals are entering the field, intensifying the accountant shortage.
How Does the Accountant Shortage Impact the Construction Industry?
The construction industry is particularly vulnerable to the accountant shortage due to the complexity of its payroll processes.
One critical challenge our industry faces is managing a fluctuating workforce that includes independent contractors, full-time hourly and salaried employees, and temporary workers.
This diverse and changing workforce requires skilled accountants who understand the nuances of job costing and labor classifications for multiple employee statuses at once.
Construction projects often involve varying pay rates for different tasks and roles. Accountants must accurately track and manage these rates to ensure correct payments and compliance, adding another layer of complexity to the payroll process.
The construction industry is subject to stringent labor laws and regulations, making compliance a significant concern.
Accountants must ensure payroll processes comply with these laws, including filing reports accurately and on time.
Payroll errors can lead to fines, delays, and legal issues that could severely impact any company’s bottom line. Accurate and timely filing of payroll reports is crucial to avoid penalties and maintain the company’s reputation.
Given these complexities, the departure of experienced accountants is a significant problem for construction companies. Losing a high-level accountant can disrupt payroll processes and lead to costly errors as the intricacies of construction payroll remain.
Where Do Accountants Go After They Quit?
Many accountants are leaving the profession altogether, seeking new career paths that offer better work-life balance, higher salaries, and more engaging work.
Many are returning to school to pursue different fields, such as law or medicine, reflecting a desire for a complete career change. Others are transferring their accounting skills to roles in finance, such as financial analysts or advisors, where their expertise can be applied in new and rewarding ways.
Human resources is another popular destination, as accountants’ attention to detail and organizational skills make them well-suited for these roles. The banking sector and other business environments also attract accountants looking for a change in responsibilities and work settings, offering new challenges and opportunities for growth.
Construction Payroll Software to Combat Accountant Shortage
Given the challenges posed by the accountant shortage, construction companies need a reliable solution to manage their payroll processes. Let’s face it, we just don’t have the time and resources to interview, hire, and hope that experienced accountants will remain loyal to their position.
This is where ConstructionPayroll.com comes in. Our payroll service & software takes the role of the accountant and runs with it. When you trust us to help you process payroll, our software is specifically designed to handle the unique complexities of construction payroll.
We ensure accurate payroll calculations, including varying pay rates and job costing.
Aside from knowing your payroll is accurate, you can rest easy knowing that our software is updated to comply with the latest labor laws and regulations. This reduces the risk of error that puts your company in the crossfire.
We produce the necessary payroll reports instantly, helping you file on time, every time, t0 avoid penalties and fines while keeping your employees satisfied.
Unlike other payroll services, we provide ongoing customer support. You will always have access to a live person who can assist with any issues you’re having during processing. The best part about working with us is that we go beyond the financials and focus on creating a better life for your workplace as a whole.
On top of taking care of your payroll process, we also offer mental health care for all of your employees and their family members through our non-profit, CP Life Services. This free service connects your team with mental health professionals who help alleviate the stressors associated with the demands of the construction industry.
Battle the Accountant Shortage with ConstructionPayroll.com
Working with ConstructionPayroll.com, your construction company can mitigate the impact of the accountant shortage and ensure payroll processes remain accurate and compliant. Our software & services offer a trustworthy and efficient solution, allowing you to focus on what you do best: building and managing construction projects.
ConstructionPayroll.com is here to help you manage your payroll efficiently, ensuring accuracy, compliance, and peace of mind. Contact us today to learn more about our services.