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Made it through another day of the Hunger Games!
Advice needed - boyfriend has almost 3.5 years of finance experience at a bank. Interviewed for PwC valuation senior associate and now recruiter says they want to hire him at “experienced associate” because he has no valuation experience. Is this too big of a step backwards in career? Should he push back and see if it gets him anywhere? If he does accept Associate, is it reasonable to ask for written, definitive timeline (1 year?) for promo to Senior upon meeting standards? Help!
Anyone want to sell me their CFE books ?
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I think it's leveraging AI by offshore resources. If you can leverage smart technology by low cost staff then the ratio of high level people (partners, directors, etc) can be crazy with huge profit lifts. It's going to dramatically reduce the need for jobs, which will be ok because there aren't going to be as many senior level roles so it should work out.
So everyone that complains about public accounting will be saved because most will be forced to find jobs elsewhere, assuming they can.
That was my sarcastic point. You can hate the job you have or hate that you have no job. ChatGPT estimates that public accounting firms employ over 1M people across the country.
Outsourcing. I outsource about 70% of my work to Asia countries (I own LLC) and pay (at market rate) is 27% of what I would bill clients here and they do a pretty good job after training and 3-4 months practice, and I can hire 2 to 3 for the same US pay.
Lol why? Because I dont hire US employees? I pay competitive rate in foreign countries and even pay them benefits, it is not like I abuse them?
Outsourcing. The firm requires that approx 45% of all hours be sent to India and its only increasing
Rising Star
Managers are eliminated on some engagements at RSM
Outsourcing is the bigger threat currently in my opinion
People used to think spreadsheets would leave most accountants jobless also
Ok
Your spelling might leave you jobless 😬
People like you are all the same - yuck
AI is going to have to come a long way to replace an experienced auditor. It will def remove some of the mind numbing task but clients are incompetent and the guidance has too much grey for us to be completely out of a job.
Outsourcing is a bigger threat but a lot of firms are cheaping out by setting it up in an inefficient way. They don’t pay for quality people so the work is crap.
Outsourcing, once your business model is hooked on cheap labor it's hard change, even with low quality.
Agreed. India’s bill rate is approx $40 per hour at the associate level vs $450 in the US. That’s 10x cheaper and even if the work quality is garbage and we need to redo half of it, it’s still more profitable than a US associate doing a 80% accurate product which still requires rework
Lack of work ethic and performance is the biggest threat.
This, combined with a shortage of talent.
Outsourcing. 1 senior in US rest in India.
Outsourcing firms who can offer AI solutions and know how to use them. They will be fatal.
Take for example accounting firms in Australia outsourcing bookkeeping and tax compliance needs from countries like the Philippines.
Lower dollar amounts to retain talents who can deliver the expected outputs. All these PH accountants did not study accounting and taxation in AU for sure but they can deliver because the tools to learn are available and they make use of it, whether it be through SME training or plainly use of online learning such as Google and ChatGPT.
AI for Cost Accountants, after all we've already largely been replaced by "average costing" in most EPR systems.
People call anything AI these days, it used to be "automation" or whatever but you won't hear people call it that anymore
I used to think outsourcing. I still think in the niche area I work, (Income tax accounting) it will be outsourcing. However, AI is getting smarter and smarter. I don't see any way AI wont take over much of the day to day accounting tasks we currently pay people to do. Which sucks, because you have to get experience in that before you can take on the managerial positions that will oversee AI.
Not sure about auditing, AI may have more of an impact. But my AR position was off shored after AI took over 90% of the work.
What do you realistically see AI taking from you? You're reading too much into headlines
I don’t truly think jobs like ours will be replaced fully - we will just need to adapt. Those who can prove their value and utilize A.I. to create efficiencies in their work will sail above the rest
yes I agree with the answers here regarding outsourcing as dealing with people who sometimes are not fluent in English can be hard
AI is now the bigger threat to accounting jobs than outsourcing. While outsourcing moved tasks abroad, AI can automate them entirely. But if you focus on advisory, analysis, and soft skills, you can stay ahead.
I just got told that ALL the tax prep (not review work) for my segment will be handled by offshore contractors. So much for training up and developing people in my segment. Sooo, I’m going with offshore 😑