What Happened To All The Accountants? The Quiet Global Crisis
Unless you're a CFO grappling with a complex audit or a small business owner trying to make payroll, you probably wouldn't even know that there's a critical global shortage of accountants. It's one of those quiet crises, simmering beneath the surface while the rest of the world goes about its business. But the truth is, the demand for accountants is skyrocketing, and the supply of qualified professionals is dwindling.
From small businesses struggling to keep their books in order, to multinational corporations facing complex regulatory hurdles, the need for accountants has never been greater. Yet, fewer and fewer young people are choosing accounting as a career. So, what's going on? Let's dive in and explore the factors driving this shortage, the potential solutions, and the alternatives businesses are turning to.
Just How Bad Is The Problem
According to the US Bureau of Labor Statistics, the number of accountants in the U.S. fell 15.9%, with more than 300,000 accountants and auditors leaving their jobs between 2019 and 2021. With the "great resignation" that swept across many industries during the pandemic, there has been a staggering 17% drop in accountants and auditors in the US alone.
The situation is similar in Australia as Chartered Accountants ANZ's members reported vacancy fill rates in 2023 below 67% for occupations such as taxation accountants, external auditors, general accountants, management accountants, internal auditors, and finance managers. Forecasts from the ABS noted that Australia would require 338,362 accountants by 2026, but the number of accounting graduates has halved, resulting in a shortage of almost 10,000 annually.
While some of the shortage can be attributed to retirees, there’s an exodus happening across all age groups with many younger accountants aged 25 to 34 and mid-career professionals aged 45 to 54 simply leaving the profession. Recent surveys also indicated that In the next 12 months, 69 per cent of accounting and finance employees are looking or planning to look for a new job — but why?
What’s Causing The Talent Drain
It turns out, the accounting profession might have gotten a little stuck in its ways. Many accounting firms haven't kept pace with the evolving expectations of today's workforce, leading to a weak "employee value proposition." Long hours, modest pay, burnout and limited flexibility have turned many people off the profession to look for more fulfilling and rewarding careers.
But the problem has been brewing as far back as the early 'aughts' and goes deeper than just compensation and work-life balance. What was once considered a secure profession with the promise of comfortable living is no longer the case. The perception of accounting careers as mundane, task-oriented work is changing, with AI increasingly seen as a tool to streamline routine tasks, allowing accountants to focus on higher-level, strategic roles. However, this shift hasn't yet attracted many new takers, as college students are drawn to the perceived excitement and potential benefits of fields like tech and finance.
The result? A skills gap with real consequences. Businesses are struggling to find qualified accountants to manage their finances, comply with regulations, and make informed decisions, leading to errors, delays, and even potential financial risks. This in turn has led to a bidding war to recruit students and local talent in an economy where many businesses are already experiencing a strain on financial resources.
But there's still hope for the industry. The future of the accounting profession hinges on its ability to adapt and evolve, and this is a golden opportunity for a rebrand. By revamping its image, diversifying its talent pool, embracing new ways of working and highlighting the potential for career growth, firms can attract a new generation of talent. But these are long term solutions that will take time and serious commitment to implement — in the meantime, immediate solutions do exist!
Offshoring, Outsourcing and Remote Hiring
The struggle to find qualified accountants domestically has propelled offshoring and outsourcing as strategic solutions for businesses to meet their financial management needs. By tapping into the global talent pool, companies are accessing highly skilled accounting professionals remotely from regions with significantly lower costs as compared to local markets.
The cost of hiring an accountant in countries like India or the Philippines can be 40-60% lower than the cost of a local hire, and these cost savings don't come at the expense of quality either. The accounting talent available in these regions is often highly educated, technically proficient, and well-versed in the latest industry practices and technologies.
But the benefits of offshoring and outsourcing accounting extend beyond just cost savings. Through remote and distributed teams, businesses can also access specialised expertise, industry specific knowledge, and language skills that are in short supply locally. This can be particularly valuable for companies navigating complex regulatory environments or facing unique accounting challenges.
Additionally, the flexibility that comes with this model allows businesses to scale their accounting resources up or down as needed, without the overhead of maintaining a large in-house team. This has been a game changer, especially for small and medium sized businesses that need to closely manage their cash flow and operational costs.
Importantly, the cost savings realised through offshoring and outsourcing do not have to come at the expense of domestic hiring. In fact, the financial efficiencies gained can be reinvested into attracting, developing, and retaining local accounting talent, helping to address the broader skills gap within the profession.
Successful Offshoring with Teamified
Teamified's global network of vetted accounting experts allows companies to tap into a deep pool of talented professionals from regions like India, the Philippines and Sri Lanka. Through Teamified's platform, organisations can onboard new accounting staff in a matter of days, rather than weeks or months, with up to 65% cost reductions.
What sets Teamified apart however is its holistic approach to global team management. Beyond just sourcing talent, the platform provides an extensive suite of services to support the entire employee lifecycle and helps build motivated and integrated teams that drive results. This includes streamlined onboarding, centralised HR management, automated workflows, performance guidance, and cross-border payroll — all accessible through a single, user-friendly interface.
For businesses looking to overcome the accounting talent shortage, Teamified's offshoring solutions offer a comprehensive and strategic path forward. With a combination of access to a cost effective global talent pool, streamlined workforce management capabilities, and a focus on driving employee engagement and performance, Teamified is a trusted partner in building high calibre accounting teams that can scale seamlessly.
Talk to one of our global talent experts to find out how Teamified can help meet your specific business needs.
Sources:
https://www.accountantsdaily.com.au/business/19493-the-year-the-accountant-shortage-got-worse
https://www.wsj.com/articles/accounting-quit-job-security-675fc28f
https://www.shrm.org/topics-tools/news/all-things-work/cpa-shortage
https://www.wsj.com/articles/why-so-many-accountants-are-quitting-11672236016
https://www.remotestaff.com.au/blog/accountant-shortage-australia/
https://www.hays.com.au/documents/276732/1102429/Hays+Salary+Guide+FY24-25.pdf
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