The Dwindling Numbers of Bookkeepers, Tax Professionals & Independent Payroll Companies: A Growing Concern for Businesses
Authored By: Chris Austin, president of Ardiah Managed Services
In recent years, the business landscape has seen a dramatic shift, particularly in the realms of bookkeeping, payroll, and tax services. As the President of Ardiah Managed Services and an active participant in business networking and organizations, I’ve witnessed the increasing difficulty businesses face in securing skilled bookkeepers and payroll experts. This can be said for tax professionals, just ask someone seeking a tax professional for their business tax returns. Whether as employees within companies or as independent operators, these professionals are becoming scarce. This issue, compounded by the COVID-19 pandemic, continues to challenge small independent payroll companies and businesses alike.
The Retirement Wave and Its Impact
One of the most pressing issues is the wave of retirements among seasoned bookkeepers and payroll professionals. According to a 2023 report by the Bureau of Labor Statistics, the accounting and bookkeeping sector has seen a 10% decrease in employment since 2020. Many experienced professionals opted for early retirement during the pandemic, and the influx of new talent has not kept pace with these departures.
This trend is evident not only among independent payroll service providers but also within companies looking to hire internal staff. Help wanted ads for bookkeepers and payroll specialists from as far back as 2020 and 2021 still appear unfilled, underscoring the persistent shortage. This gap in skilled labor strains businesses, impacting their ability to maintain accurate financial records and efficient payroll processes.
The Personal Touch Is Fading
As more small businesses close or are absorbed by larger corporations, there’s a noticeable decline in the personalized service that smaller firms and individual professionals once offered. Clients often feel like just another number in the system, losing the close, partner-like relationships they previously enjoyed. Large companies may offer comprehensive services, but they frequently lack the individualized attention and deep understanding of each business’s unique needs.
In my interactions with various business networking and membership-based organizations, I’ve heard numerous accounts of companies struggling to maintain that personal connection with their service providers. This shift is not only frustrating but can also be detrimental to a business’s success.
The Broad Impact on Businesses
The shortage of skilled bookkeepers and payroll professionals—both as employees and independent service providers—is exacerbated by several factors:
- Aging Workforce: Many experienced bookkeepers and payroll specialists are nearing retirement, creating a significant gap in the talent pipeline.
- Pandemic Fallout: The COVID-19 pandemic accelerated early retirements and career shifts, depleting the workforce faster than anticipated.
- Educational Trends: Fewer students are pursuing careers in bookkeeping and payroll, resulting in a shortage of new talent entering the field.
- Business Consolidation: The trend of smaller firms being acquired by larger entities diminishes the availability of independent, personalized services, impacting the quality of service that businesses receive.
How Ardiah Managed Services Can Help
At Ardiah Managed Services, we understand these challenges and are committed to bridging the gap. Whether you’re a business looking for an external partner or a company needing to supplement your internal team, we are here to provide the support you need. As a local small business, we offer the personalized, partner-like service that larger corporations often lack. Our goal is to be a true extension of your business, offering reliable and consistent support across a range of services:
- Payroll Services: Whether you need basic payroll processing or more complex reporting and compliance support, our flat-rate payroll services ensure you receive top-tier service without surprise fees.
- Bookkeeping: Our experienced team offers comprehensive bookkeeping solutions, keeping your financial records accurate and up-to-date, allowing you to focus on growing your business.
- Accounting: With a deep understanding of various industries, our accounting services are tailored to meet the unique needs of your business, ensuring financial clarity and strategic planning.
- Tax Services: From individual tax returns to complex business tax strategies, our CPA-led team provides expert guidance to navigate the complexities of tax regulations.
We take pride in offering these services at fair, flat rates, ensuring our clients receive exceptional value without the uncertainty of variable pricing.
In a time when skilled bookkeepers and payroll professionals are dwindling, Ardiah Managed Services stands out as a beacon of stability and personal connection. We are currently accepting new clients and are eager to partner with businesses seeking reliable and personalized support.
Together, we can navigate these challenging times and ensure that your business thrives with the attention and expertise it deserves.
Chris Austin
President, Ardiah Managed Services
About the Author: Chris Austin is passionate about supporting small businesses and is the President of Ardiah Managed Services, a trusted provider of accounting, payment solutions, POS systems, payroll, and tax services. Chris and his team are dedicated to helping small businesses thrive by delivering tailored solutions and personalized support. If you have a small business support or service need, they would love to help! 207-230-4576 or email: [email protected]
