In our article, we take a more detailed look at the future of accountancy: Generation Z.

We will explain how small accounting practices can provide a competitive edge in a tough recruitment environment by ensuring that they are equipped with the tools that Gen Z employees expects to use, such as accounting practice management software.

What is Generation Z?

Born in the mid to late 1990s and early 2000s, Generation Z are perhaps the first generation to have grown up with social media and mobile phones at their fingertips from an early age. The use of accounting practice technology in the workforce isn’t a novelty for Generation Z, it’s the norm. 

Many younger Generation Z accounting professionals also entered the workforce at a time when flexible working was either becoming, or had already become, the standard for many businesses. Collaboration tools like Microsoft Teams or Slack are not necessarily something that Gen Z has to adapt to, but rather the dominant form of accounting practice workplace communication. These subtleties carry significant weight when it comes to Gen Z’s learning preferences. 

An article from Hays, ‘What employers need to know about Gen Z’, further explores the characteristics of this element of the workforce.

What can you do to equip Gen Z in the workforce? 

Accounting practice need to adapt their offering in line with the needs and wants of each generation – which now includes these younger accountants, if they are serious about attracting and recruiting Gen Z accounting professionals. 

In a 2022 article by Zurich, they state that by 2025 Generation Z will account for 27 percent of the workforce, they currently make up 30 percent of the world’s population.

According to Deloitte although salary is still the most important factor when choosing a job, the Gen Z generation values salary less than the other generations, “If given the choice of accepting a better-paying but boring job versus work that was more interesting but didn’t pay as well, Gen Z was fairly evenly split over the choice”.

We know that opportunities for learning and development are key factors for employee job satisfaction and this will contribute to whether Generation Z accountants want to stay and progress within an accounting practice or leave to seek out career development and fulfilment.

This means accounting practices will need to get busy creating new approaches that better cater to the learning styles of Gen Z, who usually prefer a digital-first approach. 

To encourage the retention of younger accountants, and the development of an overall more effective workforce, accounting practices should revise the way they train accounting staff urgently so that it includes Gen Z learning preferences. 

Different learning styles are being demanded 

Learning experts have reassessed the delivery and content of learning and development materials in the workplace. All generations are demanding a different workplace learning style, especially Gen Z employees. 

Today’s average employee is said to be time-poor, with just 1% of a typical workweek to focus on learning and development. 

On top of this, we can add a globally dwindling attention span. This is especially the case with Generation Z learning styles, with employees in this age bracket are said to have an 8 second attention span. 

The workforce of every accounting practice is diverse in a variety of ways, including age and seniority. Leaders in accounting practices must therefore offer a strategy that suits the individual, rather than investing time and resources into a blanket approach that may not be successful. 

Why a digital-first accounting practice is crucial to Generation Z

Gen Z accounting professionals are digital natives, which means that they often have different expectations with technology when compared to previous generations. If your accounting practice isn’t using current technology, such as accounting practice management software, it may harm your ability to attract and retain Generation Z talent.

A considerable portion of today's accounting curriculum is teaching aspiring accountants how they can use current accounting practice software. When the Gen Z generation heads out into the real world and look for employment with accounting firms, they have an expectation that their employers will be using accounting practice management software, the tools they've learnt during their education. They may even be looking forward to picking up more advanced accounting technology skills on the job.

Learn how ChatGPT can help your accounting practice to be digital-first in our blog: ChatGPT in accounting firms.

The cost of not upgrading your accounting practice software for Gen Z

Gen Z accountants are also accustomed to the seamless experience offered by the apps on their phone. If they require an app for something, they simply download it. So many young accountants will approach the technology at their workplace in the same way. When their accounting practice doesn’t have forward-thinking technology that offers the functionality they need, they may seek out third-party applications to work around the process they are trying to perform.

While third-party applications may help young accounting professionals to perform a task more effectively, they aren’t necessarily connected to integrated accounting practice management software.

Due to this disconnect, using multiple disparate apps can be a frustrating user experience for young accountants. Instead of the seamless digital experience, they are used to in their private lives, at work they deal with a disjointed, unintegrated series of applications that make their jobs harder.

You may also, more importantly, find yourself at a real disadvantage in the war for accounting talent, particularly if the Gen Z generation are leaning towards larger accounting firms that will have the latest accounting tools.

Read more about the why a digital-first workplace is crucial for accounting practices in our guide: Digital transformation in accounting.

How can accounting practice management software keep young accountants engaged?

With a cloud based accounting practice management software solution, you can transform your accounting practice into a digital-first workplace that attracts Gen Z employees.

Up-and-coming young accounting professionals are hyper-focused on doing several things well at once from anywhere at any time. This means that comprehensive cloud accounting practice software is a solution the Gen Z generation will feel more comfortable with. From reporting and insights to online client collaboration, accounting practice management software has the enhanced functionality that reflects the modern accounting profession.

Best-of-breed accounting practice management software solutions in the cloud will give the future of accounting profession the flexibility to work anywhere, from any device, in a secure environment.

We dive deeper into this topic in our guide: Why do you need accounting practice management software?

Conclusion

To summarise, it is possible for smaller accounting practices to compete with the big 4 for top talent to build the next generation of accountants.

This can be especially true for those accounting practices whose accounting practice owner is thinking ahead to accounting firm succession planning and are looking to recruit a young accountant who can be groomed to take over the practice when they eventually retire.

For more on this topic, check out our guide here: Accounting firm succession planning.

While cutting-edge technology, such as accounting practice management software is not the only draw in the recruitment of Generation Z employees, it provides a solid foundation for what Gen Z accountants are looking for: work that is high-value, support that can grow their skills, increased productivity and flexible work arrangements.

Don't miss out on the opportunity to attract the future of accountancy for your practice, look to accounting practice management software today to solidify the future success of your firm.

What is the best practice management software for my accounting firm?

The best accounting practice management software solutions that will keep young accountants engaged and productive.

Ideally cloud-based accounting practice software should be complemented with other software that can help accounting practices perform everything they need to run efficiently on a daily basis, such as:

• Centralised client management, also known as a CRM,
• Powerful tax and compliance software,
• Data management and analytics.

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Trusted by over 8,000 practices across Australia and NZ, our accounting practice management software is perfect for young accountants, it integrates various features to run all aspects of a modern accounting practice, improve client experience and increase productivity.

Access Accountants is an all-inclusive cloud-based accounting practice management suite perfect for the future of accountancy. Book a demo today.