Accounting fundamentals coupled with analytical, technological, and problem-solving skills are table stakes for an entry-level accounting job. Add six different kinds of software programs and entry-level doesn’t seem like the right name for these roles. No surprise then that the gap between what employers expect and what new hires can deliver in entry-level accounting roles may be significant. More than 60% of managers and executives surveyed by Deloitte say that new hires come to work ill-prepared and without necessary experience. Recent college grads fair no better. More than 50% of hiring managers in a recent survey say recent college graduates are not meeting their expectations.
Deloitte’s survey explains how entry-level accounting work came to include skills one would expect of someone with many years of experience. “The pursuit of efficiency is pushing greater responsibilities to lower organizational rungs, raising experience expectations for staff in roles that might have once served as early career footholds,” the survey says. Additionally, advanced technology has eliminated routine tasks, leaving entry-level workers to take on more complex projects which require critical thinking, emotional intelligence, and high levels of creativity.
Some colleges have taken note of the skills gap, finetuning their curriculum to ensure graduates have workforce ready skills like data analytics. For example, in the fall of 2024, Rutgers Business School rolled out a STEM-designated master of accountancy in accounting and analytics program. Integrating analytics and AI with accounting programs is now the norm at most of the top business schools in the U.S.
Do employers have a role to play in ensuring new hires receive skill-building experiences they need for the job? Deloitte’s survey indicates the answer is “yes.” Workers (72%) and executives (73%) say “organizations should do more now to provide existing workers with more opportunities to gain experience.”
Amid a widespread accounting shortage (validated by 80% of CFOs in a recent CFO.com survey), the stakes couldn’t be higher. Between 2023 and 2033, the Bureau of Labor Statistics (BLS) projects a 6% growth in accounting jobs, faster than average for all occupations.
To help new accounting grads or new accounting hires speed up their learning curve, many people look to micro-credentialing. According to the American Association of Colleges and Universities (AACU), “when hiring for an entry-level position, most employers (68%) would prefer to hire a college graduate who also has a micro-credential.”
Surprisingly enough, AI is also playing a role in helping new hires acclimate and acquire knowledge they need to succeed in their role. For example, Amazon uses a generative AI coach (an algorithm which has analyzed internal documents like performance reviews and promotion recommendations) to help employees understand the culture and characteristics of high performers. This helps new hires and younger employees in the style of a mentor. Amazon’s senior vice president of people experience and tech says “this coach is able to draw from the experience of all of the people that we’ve hired, all of the people that we've evaluated, what we said was good, and what we said was maybe not as good, or what could have been improved, and give that kind of feedback.”
Entry-level is an antiquated term, out of step with the complexities of accounting and finance work. To be more generous, I would say entry-level accountants are versatile early career professionals with unlimited potential, provided they receive employer support.