5 Ways Accounting Firm Leaders Are Tackling the Talent Shortage

The accounting profession is currently facing a significant talent shortage, with the U.S. experiencing a reduction of approximately 340,000 accountants since 2019. This decline poses serious risks for businesses, including potential SEC fines, investor dissatisfaction, and financial inaccuracies. To navigate these challenges, Chief Financial Officers (CFOs) and finance leaders are adopting innovative strategies to maintain financial accuracy and compliance.

Understanding the impact of the accountant shortage 

The scarcity of accounting professionals has led to increased workloads for existing staff, resulting in higher stress levels and a greater likelihood of errors. For instance, a Gartner survey revealed that 59% of accountants reported making several errors per month. Moreover, in 2023, over 720 companies identified insufficient accounting staff as a factor contributing to potential financial errors, marking a 30% increase from 2019. 

Recent developments in addressing the accountant shortage 

In response to the growing need for accounting professionals, several initiatives and reforms have been introduced: 

• Educational reforms: States like Ohio are simplifying the CPA certification process by reducing the required number of college credit hours, aiming to make the profession more accessible and attract a broader pool of candidates. 

• Industry advocacy: Leaders within the accounting industry are calling for urgent reforms to address the shortage, including proposals to replace the fifth year of education with apprenticeship models, making the path to becoming a CPA more streamlined and appealing. 

• Public awareness campaigns: Programs aimed at showcasing the dynamic and impactful nature of modern accounting are being launched to attract younger generations to the field, highlighting the profession's potential for making significant positive impacts on clients' lives. 

These developments reflect a concerted effort across various sectors to address the accountant shortage, ensuring that businesses have access to the financial expertise needed to navigate complex economic landscapes. 

5 strategies to navigate the accountant shortage 

To address the challenges posed by the accountant shortage, finance leaders are implementing several key strategies: 

Integrating automation into accounting processes can significantly reduce errors and free up valuable time for finance teams. Automated spend management systems can decrease errors by up to 90% and accelerate tasks such as closing the books, enabling accountants to focus on more strategic activities. For example, companies have reported reducing their month-end close processes from days to just one click using automated solutions. 

Establishing clear divisions of responsibility within accounting functions can prevent errors and fraud. By ensuring that no single individual has control over all aspects of a financial transaction, businesses can enhance accuracy and accountability. This approach is particularly crucial in light of the current staffing shortages, as it helps maintain robust internal controls with limited personnel (Brex). 

Utilizing advanced financial technologies can streamline processes and reduce the manual workload on accounting staff. Tools that automate expense reporting, reconciliation, and other routine tasks can save finance teams countless hours, allowing them to allocate time to more critical analysis and strategy development. This shift not only improves efficiency but also enhances job satisfaction among accounting professionals by reducing repetitive tasks. 

To combat the shortage of qualified accountants, some regions are reforming certification requirements to make the profession more accessible. For example, Ohio has introduced legislation that lowers the number of college credit hours needed to become a Certified Public Accountant (CPA), aiming to attract more candidates to the field. Such reforms are essential to replenish the aging workforce and ensure a steady supply of accounting professionals. 

Creating a supportive and flexible work environment can help retain existing accounting staff and attract new talent. Offering competitive salaries, opportunities for professional development, and a healthy work-life balance are crucial in an industry facing staffing challenges. Highlighting the dynamic and impactful nature of modern accounting work can also help dispel outdated stereotypes and draw in a diverse range of candidates. 

Looking ahead 

The accountant shortage is a complex issue that requires a multifaceted approach. By embracing automation, implementing robust internal controls, leveraging technology, adapting recruitment practices, and fostering a positive work environment, CFOs and accounting firm leaders can mitigate risks and maintain financial integrity. These strategies not only address the immediate challenges posed by the shortage but also position businesses for long-term success in an evolving financial landscape.