As the accounting field faces a decline in applicants, the industry is trying to figure out ways to appeal to a younger demographic. And some experts tell CFO Brew green accounting could be a possible solution to the industry’s talent problem.

“There’s been significant challenges in attracting the next generation pool of talent,” Shari Littan, director of corporate reporting research and policy at the Institute of Management Accountants (IMA), told CFO Brew. Students coming up today have expressed the desire for purpose-driven careers, Littan added, an observation borne out by study after study on what makes Gen Z tick.

According to a survey released in February 2022 from recruiting platform Lever, 42% of Gen Z—those born between 1995 and 2012—say they would rather be at a company that gives them a sense of purpose than one that pays more. Gen Z also wants to work for companies that are taking action and will leave a company if it isn’t willing to be part of the change.

The accounting profession has taken a hit over the past few decades to keep applicants interested, as fields like FP&A have grown in importance. Over the past decade or so, the number of students who earned bachelor’s degrees in accounting has declined by nearly 9%, dropping from 57,500 in 2012 to 52,500 in 2020. The Journal of Accountancy has taken to writing pieces on how academics can keep students interested and other publications are noting that companies are facing slimmer staff numbers.

Getting students interested in tackling the climate crisis through carbon and green accounting could solve a critical issue for the accounting field and appeal to younger workers’ professional goals, Littan said. Continue reading here.—KT

Unfortunately, natural disasters have been in the headlines recently. The earthquakes in Turkey and Syria, flooding in California, and wildfires in Chile have all had staggering human and financial tolls.

And the risk of natural disaster is only rising, according to the World Economic Forum’s Global Risk Report 2023. It ranks natural disasters as the second-most severe short-term global risk, and the third-most severe long-term global risk.

Businesses can’t ignore the risk of natural disaster and need to make disaster planning a key part of their business, Jennifer Elder, CEO of the Sustainable CFO and co-author of Faster Disaster Recovery, told CFO Brew.

CFO Brew spoke with Elder about how finance can lead the way on disaster planning, the common mistakes that organizations make, and why you should plan ahead for the natural disaster that hasn’t happened yet.

This interview has been lightly edited for length and clarity.

With all of the uncertainty and disruption in the macroeconomic and geopolitical environment, how have you seen organizations prioritizing natural disaster recovery?

This is a running battle, in that organizations tend not to; disaster recovery planning is not on anybody’s hot topic…until it happens to you. So sadly, people don’t prioritize it until it’s a problem.

But we’re dealing with such a volatile environment right now. It’s really important—and I think especially for finance professionals—to do some scenario planning and say, “What could throw our world completely out of whack?” It’s really not thinking about the particular event; it’s thinking about the impact of the event. Continue reading here.—DA

The research and development tax, or R&D tax, was revamped and took effect at the beginning of 2022, and CFOs are still fighting to get the change reversed. But others say many finance chiefs are working to save face in front of investors due to their own poor planning.

If we take the timeline back to January 2022, businesses—which used to deduct their R&D expenditures from taxes in the year of usage—had to turn to amortizing the tax credit over a five-year period. It was part of the Tax Cuts and Jobs Act, which also cut the corporate income tax rate from 35% to 21%.

Over the course of the last year, finance chiefs have fought hard to reverse the provision, even penning a letter to Congress. Intel, the technology company that was the organizing chair of the November R&D coalition letter to Congress, followed up with an additional letter to Treasury Secretary Janet Yellen, sent on February 17.

As recently as February 15, the Information Technology & Innovation Foundation (ITIF), a think tank based in Washington supported by many large companies, released new research that pointed to jobs as a key incentive to reverse the tax change. The foundation reported that an estimated 81,000 direct jobs would be created by reversing the change, and a further 188,000 jobs could be created if Congress doubled the rate.

Coincidentally, many of the very concerns about the change that have been discussed in Congress, such as doubling the rate, are highlighted in the study. Some are looking to attach the reversal, which didn’t go through in 2022, to the 1099-K tax income issue, which is gaining momentum, according to CNBC.

But from another point of view, CFOs just got used to the instant deduction, instead of incorporating longer lead times into their credit paybacks, despite knowing the R&D provision was coming. The provision was passed in 2017, giving the finance chiefs approximately five years before it was enacted. Continue reading here.—KT

Stat: 90%. That’s the percentage of businesses that participated in a four-day workweek study that say they plan to keep testing the shorter week due to “sharp drops in worker turnover and absenteeism.” (the Wall Street Journal)

Quote: “They can’t just treat your child like a piece of luggage.”—President Joe Biden during his State of the Union address. United Airlines said this week it has made changes so it will be easier for parents to book seats with their kids on its flights. (CNN)

Read: Peloton only (!) lost $335.4 million in its most recent quarter, but it remains to be seen whether the measures its new(ish) CEO is taking will ultimately save the company. (CNBC)

600 CFOs surveyed: How do you balance cutting costs with investing in growth, all while building organizational resilience? See how 600 CFOs are coping with the current climate in Coupa’s latest survey here.

^{*This is sponsored advertising content.}