The accounting industry has traditionally been associated with a tireless work ethic, the “9am-to-3am” mentality, and an acceptance of overtime without complaint. However, over the past few years, the new generation has started to turn away from this profession, and many seasoned accountants are reaching the later stages of their careers. The issue of talent shortages within the industry first became evident about five years ago.
According to data released by HKICPA in 2024, accountants under the age of 35 account for only 20% of the total, while those under 50 make up nearly 36%. Meanwhile, the net growth of licensed accountants in 2023 hit a record low of 0.4%, highlighting a generational gap in the industry. How do these issues affect your company?
Fewer People Entering the Industry: Decline in Attractiveness
The accounting industry has traditionally offered a clear career path and income growth. However, in recent years, young people's interest in accounting has gradually declined. The primary reason is the wide range of career options available that no longer require sacrificing health for money, such as managing social media, pursuing side businesses after clocking out on time, or venturing into IT to lay the groundwork for future entrepreneurship.
Additionally, workplace culture among younger generations has significantly shifted. They are increasingly focused on work-life balance and emphasize leaving work on time, with little interest in working overtime. This contrasts with the traditional norms of the accounting industry, which is now seen as outdated. Due to employees resisting long working hours and the shortage of staff, many firms are unable to complete all tasks on time during busy peak seasons. As a common solution, priority is often given to publicly listed or large companies, while small and medium-sized enterprises (SMEs) may not receive their audit reports until July or August, leaving them insufficient time for review.
Local Talent Shortage, Foreign Labor Becomes a Trend
As local university graduates are increasingly unwilling to enter the accounting industry, more companies are relying on foreign labor to fill accounting vacancies. Some set up offices in Southeast Asia or China, outsourcing work to keep prices competitive. However, the introduction of foreign labor and remote offices also brings new challenges for companies, particularly a lack of understanding of Hong Kong's accounting standards, which often impacts service quality. For these workers, following instructions is more important than ensuring you aren’t overpaying taxes or that the audit report is of high quality. Companies need to invest more time overseeing tax filings and audit reports to ensure all issues are resolved before signing off.
Hiring Internal Accountants is Expensive and Difficult
For those already in the accounting profession and holding licenses, there are plenty of job opportunities. Besides the complexity of the work and the ability to leave on time, they also consider the company’s reputation in Hong Kong as a stepping stone for future career moves. As industry salaries have been rising, if your company cannot keep up with market demands, accountants tend to search for new jobs while still employed. Businesses should consider market trends and the stability of their accounting department, budgeting accordingly, and investing in accounting systems to reduce the impact of staff turnover. SMEs we’ve spoken to report that licensed accountants start at HK$40,000 (with 4 years of experience) but often don’t stay long, causing frustration with having to replace staff every few years.
How Our Services Help You Address These Challenges
Bookkeeping King provides flexible and professional accounting services that allow you to save costs and gain assurance when outsourcing your accounting processes. Our team consists of experienced accountants who use our proprietary systems and various bookkeeping techniques to enhance efficiency, ensuring that we maintain high-quality service even as client numbers grow and the industry evolves. We have also invested in building a customer system so that you no longer need to search through dozens of Excel tabs to find the financial data you need.