- The severe shortage of accountants is causing companies to delay filing key mandatory reports.
- Tupperware delayed the release of its annual report due to shortages in the accounting and resources department.
- The lack of new talent is contributing to the current accounting crisis.
The shortage of accountants is so severe that companies are delaying filing key mandatory reports.
On Friday, Tupperware said it did not have enough accountants to release its annual report on time. The storage container maker is the latest in a growing list of companies that have delayed releasing their annual reports for a variety of reasons. About 70 companies have postponed their annual reports this year, an increase of 40% from last year, research firm Intelligize counted last month.
In a regulatory filing, Orlando-based Tupperware blamed the delay on “significant” past and present accounting attrition, “which resulted in resource and skill gaps, strained resources and loss of continuity of knowledge.
Tupperware added that previous delays in filing its 2022 annual report led to the postponement of its quarterly reports, which subsequently pushed back work on its 2023 annual report.
On LinkedIn, the company is recruiting a single accountant for a position in Poland.
Once an icon of American cuisine, the manufacturer is now facing numerous business problems. In October, its outside accounting firm, PricewaterhouseCoopers, dropped the company as a client. Nearly a year ago, Tupperware warned investors of potential bankruptcy amid losses and higher operational costs.
Accounting staff problems at Tupperware and other companies are becoming an operational headache with no signs of slowing down.
Seasoned accountants are retiring while the profession, notorious for long hours and unfulfilling work, struggles to attract young talent. The American Institute of Certified Public Accountants said 75% of certified public accountants reached retirement age in 2020. The U.S. Bureau of Labor Statistics projects there will be 126,500 accounting and accounting positions. listeners every year, on average, over the decade.
But many students say they are discouraged by the fifth year of college required for accounting courses. And the average starting salary for accountants, around $62,000, seems less attractive than that of other better-paying or less stressful jobs in the business world.
“Accountants and auditors are to business what people in black and white striped shirts are to sports. We are the arbiters of business,” said Steven Kachelmeier, chairman of the accounting department at the University of Texas, to Business. Insider last year.
“We may not always like referees, but without them, sport is child’s play,” he said, explaining that if the shortage of these workers persists, accountability and integrity businesses could suffer.
This year has seen a series of high-profile financial reporting errors, some of which caused stock prices to change. In February, ride-hailing app Lyft incorrectly announced in its fourth-quarter earnings release that it expected its profit margins to increase by 500, not 50, basis points, leading to its stock is up 60%. Electric vehicle maker Rivian and gym company Planet Fitness said they made typos in results this year.
In a move similar to that of Tupperware, toy giant Mattel said in a February filing that it was unable to file its 2023 annual report due to “certain deficiencies in its internal control over financial matters.” “financial information”.
The Securities and Exchanges Commission can impose penalties for erroneous filings, including fines for delays and errors in financial reporting.
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