Catherine Hyodo is a Market Managing Principal at accounting firm Grant Thornton’s downtown office. She has three decades of public accounting experience, primarily focusing on audits.
Hyodo spoke with the Business Journal about employee retention and the local market for accounting firms.
How is the accounting industry faring in Los Angeles and Southern California right now?
The Los Angeles metro area has a large and diverse business landscape, driving strong demand for accounting professionals across industries such as entertainment, technology, real estate and health care.
According to the U.S. Bureau of Labor Statistics, employment of accountants and auditors is projected to grow 6% through 2033, outpacing the average for all occupations. This growth reflects the increasing complexity of financial regulations, evolving tax laws and the need for businesses to maintain financial transparency and compliance.
Despite this demand, the accounting industry faces challenges, including talent shortages, evolving technology and shifting regulatory landscapes. To address these, firms are adapting by leveraging automation, AI-driven tools, and flexible work models to attract and retain top talent. Additionally, there is a growing emphasis on advisory services, as businesses seek strategic financial guidance beyond traditional accounting functions.
Overall, the industry in Southern California remains strong, offering opportunities for innovation and growth as firms continue to adapt and evolve to market demands.
With the second Trump Administration now underway, do you anticipate any changes to the business climate that will keep accountants busy working with their business clients?
Yes, I anticipate significant changes in economic policy, taxation, regulation, trade and sustainability under the second Trump administration. These shifts could have far-reaching impacts, including supply chain disruptions, increased tax complexity and rising costs.
As a result, businesses are turning to us for guidance to better understand and proactively prepare for these changes. Whether it’s helping clients navigate new regulations or identifying opportunities within evolving policies, our focus is on ensuring they can adapt effectively and protect their bottom line.
What steps is your operation taking – if any – to implement new technologies such as generative AI software?
Our firm continuously explores cutting-edge technologies to enhance efficiency and effectiveness in delivering high-quality service to our clients. As part of this effort, we have developed generative AI tools that leverage state-of-the-art GPT technology to support our Risk Professionals.
Our GPT-powered tool performs a range of tasks, from conducting comprehensive organization-wide gap analyses to generating walkthrough questions for specific controls. This innovation enhances risk and compliance management by improving accuracy and efficiency.
This is just one example of our investment in generative AI. Additionally, our advisory services provide guidance on the responsible use of AI, helping clients assess their data environments and prepare for the integration of both current and future AI technologies.
What do you do to increase accountant retention at your office?
I believe deep, meaningful connections drive better business outcomes. To strengthen these connections, we have intentionally created team pods that foster relationships from the staff level to partners. Our Los Angeles leadership team recognizes the importance of engagement and has proactively connected with all team members – not just their designated coaches – regardless of project assignments.
Additionally, we established an advisory council composed of professionals from various service lines and experience levels. This group meets to discuss challenges employees face and provides insights and actionable solutions.
One key initiative they introduced was speed networking sessions to enhance cross-service-line connections through specialized discussion topics. They also proposed a reward system for employees who facilitate introductions between colleagues and clients, which not only drives cross-sales but also demonstrates our deep understanding of clients’ businesses and how we can better support their needs.
What is your outlook on remote working in 2025?
Over the past year, global firms have shifted back toward in-office expectations. In the professional services industry, learning has traditionally been rooted in personal interaction with teammates and clients. I’ve observed that remote work slowed certain aspects of learning, making collaboration and mentorship more challenging.
That said, I believe in striking a balance between flexibility and in-person connection. Even before the pandemic, we implemented designated “Collaboration Days” one to two times per month, bringing all service lines together in the office for team meetings, activities, and shared lunches.
As we transition to a weekly in-office minimum, I’ve noticed a direct correlation between in-person interactions and increased job satisfaction, particularly among younger team members.
While professional flexibility remains essential, I anticipate we will continue to refine our hybrid work model. Already, we’re seeing greater engagement as more employees return to the office.
