The American Psychological Association (APA) defines burnout as a state of emotional, physical, and mental exhaustion resulting from prolonged and excessive stress.
According to a recent study conducted by the University of Georgia (UGA) and FloQast, almost all accountants suffer from burnout.
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The study surveyed over 1,000 U.S. adults working in accounting and finance, revealing that 99% of respondents experience exhaustion, inefficiency, and alienation from their job at least some of the time. The primary factors contributing to burnout were identified as:
- Work overload caused by accountant shortage
- Lack of control over work
- And a toxic work environment.
Moreover, the study highlights that younger and less experienced accountants are more susceptible to burnout.
In this blog, we not only discuss the impact of burnout on accounting firms but also provide strategies to prevent burnout when symptoms are identified.
How To Spot Burnout Symptoms In Your Accounting Firm
Burnout is a common issue in today's fast-paced work environment, but there are a few signs you can spot that will tell you your team is going through difficult times:
- The decline in work performance: When employees are experiencing burnout, they may struggle to focus, feel overwhelmed or fatigued, and have difficulty completing tasks efficiently. This can lead to missed deadlines, errors, and a decline in work quality. In addition, burnout can cause individuals to lose their passion for their work, resulting in a lack of motivation and decreased creativity.
- Absenteeism and turnover: Burnout can cause employees to feel exhausted and disengaged, leading to increased absenteeism and higher rates of turnover. This can be costly for organizations, as recruitment and training expenses can add up quickly. Burnout can also impact team morale and cohesion, as the loss of a team member can create additional stress and workload for those who remain.
- Increased conflict and tension: Lack of patience and increased irritability in the workplace are the most common effects caused by burnout. This can lead to conflicts with colleagues or management, as well as tension within teams. In some cases, burnout can even lead to bullying or harassment in the workplace, as individuals may lash out in frustration. A negative work environment impacts team productivity and performance.
- Stale communication and collaboration: When individuals experience burnout, they might feel overwhelmed and try to withdraw from group activities or limit their interactions with other team members. As a result, collaboration suffers, leading to a decrease in the enriching sharing of ideas and group projects. This can also cause communication breakdowns, misunderstandings, or errors in completing tasks.
How To Prevent And Address Burnout
Here are six ways accounting firms can prevent and address burnout, as well as three key components uncovered by the FloQast study to modernize the Close process and reduce burnout:
Check out your company's workload
A recent survey by alliantTalent shows that less than 1% of firms in the US can find enough staff, and 90% of them report difficulties in solving the accountant shortage. This struggle to find enough local talent forces them to adopt various strategies to fill their ranks. These strategies include hiring workers abroad, raising starting salaries, offering remote roles, and employing staff without a college degree. But despite these strategies, the talent shortage is still rough, forcing teams to overload tasks and exceed their capacities, causing stress, conflict, and burnout.
Watch out for micromanagement behaviors among your leaders
There is nothing more stressful than feeling like you are constantly being watched over your shoulder. Micromanagement can be a major source of stress for employees, leading to feelings of frustration and burnout. Encourage your managers to give their team members autonomy and trust them to get the job done. This can help foster a more positive and productive work environment.
Encourage a healthy work-life balance
Employees need time to rest and recharge to perform at their best. Encourage your team to take breaks throughout the day and to use their vacation time. Consider offering flexible scheduling options, such as the ability to work from home or adjust work hours as convenient.
Provide flexible scheduling options
Flexible scheduling options can help reduce stress and prevent burnout. Consider offering options like compressed work weeks or flexible start and end times. This can help employees better balance their work and personal lives.
Offer mental health resources and support
Mental health concerns can contribute to burnout, so it's important to offer resources and support to employees. This could include an employee assistance program, access to counseling services, or mental health days.
Recognize and reward employee contributions
Feeling appreciated and valued can go a long way in preventing burnout. Recognize and reward your team's contributions, whether through bonuses, public praise, or other forms of recognition. This can help employees feel motivated and engaged, reducing the risk of burnout.
Additionally, the FloQast study found that modernizing the Close process can help reduce burnout among accounting professionals by
- Implementing better training processes for existing tools. Instead of getting new ones, make sure your employees fully understand the ones they already use.
- Reducing the overall number of tools used.
- Introducing an integrated solution can help prevent employees from being bogged down by endless and complex processes. Studies have shown that using a single tool to its full potential can be more effective and promote peace of mind among employees.
Prioritize Mental Health In Your Accounting Firm
Prioritizing mental health in your accounting firm is crucial as burnout is a prevalent issue among accountants.
Employers who prioritize the team's well-being and promote a healthy work environment can improve retention rates, reduce absenteeism, and increase overall job satisfaction. By implementing solutions such as integrated tools, effective training, and reducing the overall number of tools used, employers can help alleviate the factors that contribute to burnout and promote a healthy work-life balance for their employees.
Ultimately, prioritizing mental health can lead to a more productive, engaged, and satisfied workforce, benefitting both the employees and the accounting firm as a whole.
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Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References
Boyd, D. (2023, February 15). Workplace Stress - The American Institute of Stress. The American Institute of Stress. https://www.stress.org/workplace-stress
Tyson, J. (2022, July 21). Most accountants suffer burnout: study. CFO Dive. https://www.cfodive.com/news/most-accountants-suffer-burnout-study/627850/
FloQast Releases Survey Results Detailing Prevalent Burnout In Accounting Industry - FloQast. (n.d.). FloQast. https://floqast.com/press/floqast-releases-survey-results-detailing-prevalent-burnout-in-accounting-industry/
