Diversity, equity and inclusion (DE&I) isn’t just a box to tick—it’s a competitive advantage in today’s global business landscape. For accounting firms, a diverse workforce unlocks innovation, strengthens analytical thinking and aligns with ethical foundations.
However, the accounting profession still struggles with DE&I. Recent surveys reveal low feelings of adequate representation among Black and Hispanic certified accountants. Leadership ranks remain predominantly white and male.
This points to an urgent need for change. Through practical insights, this blog post aims to equip you with an actionable roadmap for building a truly diverse and inclusive accounting firm.
Whether you’re a managing partner, HR professional or staff member committed to accounting firm DE&I, you’ll gain a comprehensive understanding of the challenges and opportunities. More importantly, you’ll feel ready to drive change, enrich culture and contribute to a more equitable future for the profession.
Why Accounting Firm DE&I Matters
It Drives Innovation and the Bottom Line
DE&I is much more than just a moral imperative; it directly impacts an accounting firm’s financial success. Companies with greater ethnic diversity see 36% higher financial returns, per McKinsey research. With diverse perspectives come more creativity, better decision-making and ultimately, a competitive edge.
It Aligns With Ethical Foundations
Accounting firms have a responsibility to reflect the diverse communities they serve. Moving beyond representation to build an inclusive culture aligns perfectly with the profession’s ethical values of integrity and transparency.
It Leverages a Unique Position to Champion Social Justice
The powerful position accounting firms have as managers of businesses’ financials allows them to not only lead in DE&I internally but also advocate for equality through their work with clients and communities.
Overcoming Key Obstacles to Accounting Firm DE&I
Fixing the Pipeline
Accounting has a diversity pipeline problem. In 2020, only 2% of accountants were Black, according to AICPA. Unequal access to education and opportunities feed this disparity, which means that attracting diverse talent will require broad societal solutions.
Closing Representation Gaps
Even when diversity enters the door, glaring gaps remain. Women hold just 17% of partner roles, with even fewer people of color in leadership. This lack of representation at the top undermines inclusion firm-wide.
Addressing Unconscious Bias
Despite good intentions, hidden biases impact hiring and promotions. Mandatory bias training is a must—but frequently overlooked.
Actionable Steps to Build a Diverse and Inclusive Firm
- Recruitment –
- Widen the Talent Pool: Look beyond the norm when sourcing candidates. Partner with minority professional groups and historically Black colleges for referrals. Diverse intern cohorts today become diverse employees tomorrow.
- Minimize Bias With Blind Screening: Remove names, gender and education from initial resume reviews. This allows you to focus on skills rather than unconscious biases about backgrounds. Automated screening tools can assist with this.
- Leverage Partners: Join forces with organizations already focused on diverse hiring: nonprofits, clients with model programs, etc. Tapping into an existing ecosystem amplifies your efforts.
- Widen the Talent Pool: Look beyond the norm when sourcing candidates. Partner with minority professional groups and historically Black colleges for referrals. Diverse intern cohorts today become diverse employees tomorrow.
- Minimize Bias With Blind Screening – Remove names, gender and education from initial resume reviews. This allows you to focus on skills rather than unconscious biases about backgrounds. Automated screening tools can assist with this.
- Leverage Partners -Join forces with organizations already focused on diverse hiring: nonprofits, clients with model programs, etc. Tapping into an existing ecosystem amplifies your efforts.
- Retention –
- Tailored Mentorship: Mentorship initiatives specifically for underrepresented groups provide the support needed to thrive and advance careers. Moving beyond just monthly check-ins to structured programming with goal setting and skills training ensures meaningful impact. Embrace Flexibility: Offering remote work, flexible schedules and shorter work weeks acknowledges diverse lifestyles and commitments. Flexibility aids in retention and expands your talent pool.
- Make DE&I Training Mandatory: Regular interactive training on unconscious bias, microaggressions and cultural competency equips teams to build an inclusive culture. Sessions should evolve with the social climate to stay relevant.
- Advancement –
- Promote on Merit: Use transparent, unbiased criteria for promotions—applied consistently to all. When the process is fair, employees are motivated to excel.
- Prepare Leaders from Within: Actively groom high-potential individuals from underrepresented groups for leadership through specialized training and stretch assignments. Build a diverse pipeline to the top.
- Reward DE&I Contributors: Recognize those advancing accounting firm DE&I through bonuses, promotions and public praise. This shows your firm’s commitment in tangible ways beyond just talk.
- Culture –
- Leverage Employee Resource Groups: ERGs organized around dimensions like race, gender or job role provide a safe space for sharing experiences and shaping DE&I policies. Group insights can be used to identify challenges and solutions.
- Encourage Open Dialogue: Daily interactions, town halls and anonymous surveys all create open channels for DE&I discussions beyond formal settings. Employees should feel comfortable speaking up and speaking their mind.
- Make DE&I Central to Your Mission: Move DE&I from a side program to the heart of your mission. Integrate DE&I into strategies, metrics, client work—weave it into the fabric of the firm. When DE&I becomes everyone’s responsibility is when you’ll really see success.
Realizing the DE&I Vision
Fundamentally, DE&I is not just a program, but a philosophy. It’s a commitment to fostering the diversity of perspectives and experiences that drive innovation. It’s creating a culture where everyone feels valued and empowered to excel. While the path has twists and turns, the destination is clear: an accounting profession that leverages the strengths of diversity to better serve businesses and communities.
We at ABLE are passionate about improving accounting firm DE&I to forge a more inclusive future. Our tailor-made CRM is designed to provide CPA firms like yours with everything you need and nothing you don’t. Schedule a free demo today to discover how ABLE can help your firm build a culture of accountability.