July 31, 2023

Accounting Industry Outlook - Trends in Organizational Culture and Other Issues Impacting the Profession

By DeLynn Deakins, Today’s CPA Managing Editor

Consider this – what is the most important intangible element of your business that sets you apart from every other business in the world? Organizational culture should be right at the top of the list. A positive culture is considered to be the single most important competitive advantage for an organization and it can have a major impact on your bottom line.

Every organization has a unique culture. It’s the most powerful force people experience, setting the tone and context for everything an organization does. It tells people how to behave, what values to adhere to, and what matters most.

According to Brighton Leadership, culture enables strategy. When culture and strategy are aligned, companies can show as much as a 50% differential in performance. To energize a culture into a competitive advantage, an emotional connection is needed between the enterprise and its employees. It is culture that shapes an employee’s experience. Employees say organizational culture is a top priority for potential jobs.

This spring, TXCPA continued our series of research surveys designed to examine the accounting industry outlook and we discovered some interesting trends related to organizational culture and other far-reaching issues. The survey respondents were made up of TXCPA members and non-members and they were professionals in business and industry (41.7%), public practice (38.6%), government (5.4%), education (4.4%) and other professionals (9.8%).

Hiring and Salaries

Having ample staff resources to meet organizational objectives can positively impact the culture by minimizing burnout and preventing disproportionate responsibilities across team members. The accounting profession is facing a shrinking pipeline of new talent, which is critical for replacing retiring staff and growing business.

As firms and companies continue to face heavy competition to attract and hire CPAs, the survey revealed a shift toward hiring more non-CPAs to fill the void. The rate of employment of full-time, in-house CPAs has statistically declined from 2022 to 2023, while the rate of projected employment of full-time, in-house non-CPA professionals has statistically increased during that time. In addition, the rate of projected employment of administrative staff has statistically declined from May 2022.

To help attract top talent, a majority of respondents in public practice predict an increase in the starting pay for new CPAs. Many of the respondents working in business and industry organizations (23.9%) predicted no change in the starting pay.

Structural Change – Mergers and Acquisitions

When two organizations merge, their cultural aspects must also come together. If cultures clash, it can lead to tension and conflict. This can disrupt productivity and even cause the deal to fail. In fact, it has been reported in the past that around 70-90% of mergers and acquisitions fail to deliver their anticipated benefits because of “cultural issues.” Organizations need to recognize the cultural differences as influences that can affect the merger’s success and take steps to address the issues that impact their people.

Within the accounting profession, business and industry companies are statistically more likely to have considered a structural change in the past 12 months compared to public practice firms.

Taking a closer look at the size of the organizations that seriously considered a structural change within the last 12 months, they were organizations with at least 15 CPAs and at least $30 million in accounting-related annual revenue. Further, the most likely organizations to have actually changed their structure employ at least 75 CPAs and at least $30 million in accounting-related annual revenue.

Trends in Levels of Business

Organizational culture can also thrive in times of growth, which can come about through expanded business opportunities or with a positive outlook on the future of the organization’s current business. The survey explored the predicted levels of business in the accounting industry over the next 12 months. Respondents in public practice expect higher business levels than CPAs in business and industry.

When considering tax vs. audit work, respondents in tax predicted statistically lower levels of business in the year to come, while CPAs in audit predicted statistically higher levels of business during the same time period.

Managing Your Culture

In an ever-evolving profession, it is critical that organizations are continuously reviewing and supporting a culture that will provide a steady foundation and help them thrive in times of change. Knowing the trends related to hiring, pay, mergers and growing areas of business will help you prepare your organization for what’s to come so you can manage your culture for positive results.

TXCPA thanks those who participated in the spring 2023 accounting industry outlook survey and provided important data on the direction the profession is headed over the next year. We look forward to sharing future reports with you, where we’ll continue to identify key trends that will impact Texas businesses and accounting organizations.

You Can Sponsor TXCPA’s Accounting Industry Outlook

Twice each year, TXCPA surveys accounting and finance professionals asking them to help us identify issues that will be important to the future of their business. If you would like to sponsor the TXCPA Accounting Industry Outlook, please contact our Media Representative
Lisa Turner at lisaturner@lmtmedia.com or 941-400-7419.

Endnotes

1 “What is Corporate Culture, Why It Matters and How to Build It.” Haiilo, Jan 13, 2023, https://haiilo.com/blog/corporate-culture-definition-importance-best-practices/

2 “What is Corporate Culture, Why It Matters and How to Build It.” Haiilo, Jan 13, 2023, https://haiilo.com/blog/corporate-culture-definition-importance-best-practices/

3 “Cultural Integration in Mergers and Acquisitions.” Technicali, Aug 30, 2022, https://technicali.com/cultural-integration-in-mergers-and-acquisitions/

 

  • The Future of CPA Licensing: TXCPA Members in Action at the State Capitol

    With the profession facing a talent shortage, legislative efforts are underway to introduce alternative pathways to licensure. Additionally, bills have been introduced to address CPA mobility and practicing accounting across state lines. TXCPA members took action at the Texas Capitol to address and emphasize the importance of these initiatives in strengthening the profession.
    View Article
  • CPE: Corporate Codes of Conduct - Similarities and Differences, and Implementation and Communication Strategies

    Codes of conduct serve as essential guidance for organizations, ensuring ethical behavior, regulatory compliance and corporate integrity. This article examines the significance of codes of conduct, highlighting examples from Fortune 500 companies. Effective implementation involves executive endorsement, ongoing communication and integration, and reinforcing accountability.
    View Article
  • Build on Our Momentum

    During TXCPA's 2025 Advocacy Day at the state Capitol, CPA professionals met with legislators to discuss proposed legislation on alternative CPA pathways and mobility. These efforts strengthened relationships with lawmakers, positioning CPAs as trusted advocates for the profession. The positive feedback from legislators reflects the impact of these advocacy efforts.
    View Article
  • Assessing AI From a Tax Perspective, Part 2

    In part 2 of a series, this article examines the risks and limitations of using AI in tax preparation. While AI tools like ChatGPT, Copilot, Perplexity, and TaxGPT can assist with tax research, their accuracy depends on precise prompts and professional oversight. Responses are often outdated, misleading or incorrect, posing risks to professionals who rely on them without verification.
    View Article
  • Understanding Sustainability Accounting Standards Board Standards

    The Sustainability Accounting Standards Board (SASB) provides industry-specific guidelines for companies to report on ESG factors that impact financial performance. Companies use SASB metrics to enhance investor transparency and manage ESG risks. While SEC regulations on sustainability remain pending, over 3,000 companies worldwide have voluntarily adopted the standards to improve corporate performance.
    View Article
  • What’s Happening Around Texas - March-April 2025

    TXCPA chapters across Texas hosted various events to engage members and support future CPAs. TXCPA Dallas held a Coffee & Connections event, while TXCPA East Texas members inspired students at UT Tyler’s Beta Alpha Psi meeting. TXCPA Fort Worth welcomed new licensees at a luncheon and in San Antonio, members celebrated new iDEAL graduates and elected the 2025-2026 Officers and Directors.
    View Article
  • Navigating Timekeeping Compliance in Government Contracting

    Texas contractors receiving government funding must maintain rigorous accounting practices, particularly in timekeeping and labor distribution, to ensure they are adhering to federal regulations. CPAs and finance professionals play a crucial role in enforcing applicable standards. Mastering timekeeping is essential to help meet federal standards and uphold the integrity of taxpayer-funded projects.
    View Article
  • Spotlight on CPAs: Shilpa Boggram Sathyamurthy, CPA-Houston, CA

    Shilpa Boggram Sathyamurthy is an accounting profession leader with experience in both public and industry accounting. In this Spotlight on CPAs article, she discusses the differences in their focus, workload and learning opportunities. She also actively contributes to TXCPA through committee service, valuing collaboration and professional development.
    View Article
  • Do New SEC Disclosure Requirements for Share Repurchases Dilute Their Benefit?

    The SEC introduced new disclosure requirements for share repurchases, aiming to increase transparency. Under the updated rules, companies must now disclose daily repurchase data in quarterly reports. Companies must also disclose whether insiders traded in the four days before or after announcing a buyback. The rules do not specifically address accelerated share repurchase programs.
    View Article
  • Custom Reporting Solutions for ASC 842 Lease Accounting

    ASC 842 compliance remains challenging as organizations manage complex lease portfolios and multiple accounting systems. While standard software offers reporting features, many require custom solutions to integrate specific accounting attributes and enhance internal controls. Using a structured approach to developing custom reports can help improve efficiency and support the decision-making process.
    View Article
  • 2024-2025 Accounting Education Foundation Scholarship Recipients

    The TXCPA Accounting Education Foundation (AEF) awards scholarships to outstanding students, providing not only financial aid but also connections to a supportive community of experienced professionals. Congratulations to these exceptional students for their dedication and commitment to excellence!
    View Article
  • Take Note

    In this edition of Take Note: How to Get the Latest Updates on BOI Reporting; Safeguard What Matters Most; Accountants Confidential Assistance Network; Advocacy Day and Midyear Leadership Council Meeting; TXCPA Career Center; CGMA® Designation
    View Article
  • Classifieds

    The classified ad section features listings for practice owners looking to sell, professionals seeking firms to purchase and a variety of specialized services. Whether you're looking to expand, sell or explore niche opportunities, these classified ads can connect you to valuable business prospects and resources.
    View Article

CHAIR
Mohan Kuruvilla, Ph.D., CPA

PRESIDENT/CEO
Jodi Ann Ray, CAE, CCE, IOM

CHIEF OPERATING OFFICER
Melinda Bentley, CAE

EDITORIAL BOARD CHAIR
Jennifer Johnson, CPA

MANAGER, MARKETING AND COMMUNICATIONS
Peggy Foley
pfoley@tx.cpa

MANAGING EDITOR
DeLynn Deakins
ddeakins@tx.cpa

COLUMN EDITOR
Don Carpenter, MSAcc/CPA

DIGITAL MARKETING SPECIALIST
Wayne Hardin, CDMP, PCM®

CLASSIFIEDS
DeLynn Deakins

Texas Society of CPAs
14131 Midway Rd., Suite 850
Addison, TX 75001
972-687-8550
ddeakins@tx.cpa

 

Editorial Board
Derrick Bonyuet-Lee, CPA-Austin;
Aaron Borden, CPA-Dallas;
Don Carpenter, CPA-Central Texas;
Rhonda Fronk, CPA-Houston;
Aaron Harris, CPA-Dallas;
Baria Jaroudi, CPA-Houston;
Elle Kathryn Johnson, CPA-Houston;
Jennifer Johnson, CPA-Dallas;
Lucas LaChance, CPA-Dallas, CIA;
Nicholas Larson, CPA-Fort Worth;
Anne-Marie Lelkes, CPA-Corpus Christi;
Bryan Morgan, Jr, CPA-Austin;
Stephanie Morgan, CPA-East Texas;
Kamala Raghavan, CPA-Houston;
Amber Louise Rourke, CPA-Brazos Valley;
Shilpa Boggram Sathyamurthy, CPA-Houston, CA
Nikki Lee Shoemaker, CPA-East Texas, CGMA;
Natasha Winn, CPA-Houston.

CONTRIBUTORS
Melinda Bentley; Kenneth Besserman; Holly McCauley; Craig Nauta; Kari Owen; John Ross; Lani Shepherd; Patty Wyatt

 

Your TXCPA membership has not been renewed for 2025 -2026. Renew now.