The Real Cost of the Accounting Shortage #accounting #accountant #accountingmajor #business #businesspodcast #podcast

For every 24 day increase in the time it takes to fill an accounting position, which represents one standard deviation from the mean, there's an associated eight to 10% increase in the likelihood that the company will experience material internal control weaknesses. So we have real math now. Before it was like, oh yeah, people are behind getting their closes done, they're not filing their financial reports on time, there's districts that can't get financial statements, but now it's like real math, like it's a formula now. And they can prove it because they said the average time to fill accounting positions increased from 40 days in 2010 to 48 days in 2022. So that suggests with the other findings that the risk of internal control weaknesses has been increasing industry-wide over the past decade in a meaningful way. So there is a cost to our capital markets to the accountant shortage.