BDO USA plans to double the size of its offshore workforce after a decline in the number of young graduates becoming accountants in the United States.
The accounting firm would add thousands of overseas jobs, much of it in India, according to Chief Executive Officer Wayne Berson, amid a worsening talent shortage affecting U.S. audit and tax businesses.
BDO United Stateswhich employs about 12,000 people, aims to have 5,000 people at its offshore joint venture “BDO Rise” within five years, Berson told the Financial Times.
BDO Rise already has 2,000 people in India and recently added about 100 jobs in South Africa, Berson said, with plans to grow in both countries.
“We are seeing a huge talent shortage in the profession,” he said. “While it would be nice to just hire nationwide, you have to be open to the idea that maybe someone else has something you don’t have, that you can buy.”
US chief accountants are struggling with the question of why interest in the profession has declined, just as they need to replace a wave of retiring baby boomers.
The United States has never had more than 80,000 accounting graduates a year. But the Bureau of Labor Statistics projects that 136,400 new accountants and auditors will be needed each year over the next decade.
The big four accounting firms – Deloitte, PwC, EY and KPMG – have established significant offshore presences in recent years, particularly in India, to streamline their operations and provide round-the-clock service to clients. PwC US, for example, has what it calls “acceleration centers” in Malaysia, Argentina, China, India, Mexico and the Philippines. Deloitte’s American business employs nearly as many people outside the United States as it does inside the country.
The offshoring trend is now being embraced by small and medium-sized businesses as well, as the job market for skilled accountants has tightened.
Starting salaries of accountants in the US often fail to match those available in finance or technology, and the profession also struggles with a reputation for being boringthat professional bodies are trying to overcome with social media campaigns and work in schools.
Berson said young people seem more interested in becoming consultants than entering the more established but less immediately lucrative tax and auditing professions.
“The next generation wants to move quickly, they want to be enthusiastic about their work. A lot of them are looking at things like counseling services,” she said.
“I was an auditor, how about I spoke to you before the audit? Because I think it’s always better to get your feet wet, get a foundation. You have to hone your skills before you can be a consultant to anyone.
Berson, originally from South Africa, has been chief executive officer of BDO USA for 10 years and president of BDO International, the global network of brand-sharing accounting firms, since 2014. The US firm’s annual revenue grew from $618 million a decade ago to about $3 billion, in part through the acquisition of smaller companies in the US, and Berson projects $5 billion over three to four years, in part by expanding the consulting side of the business.
He told the FT he had “resisted” to implement a back-to-office policy in the US but expected managers to encourage camaraderie and collaboration.
“I think the more we see people together in person, the better it will be for their careers,” she said. “I’m often asked about this and I say, ‘we’re not going to have a set policy, but if I were in your shoes, I’d like to meet people, I’d like to be in the office, I’d like you to sit down with that partner, go to a meeting with him or her.'” .
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