A career in accounting has long promised stability and diverse opportunities, yet firms across Australia and New Zealand are struggling to fill crucial roles amidst a shortage of skilled professionals.

As the demand for accountants increases – driven by complex regulatory environments, rapid technological advancements, and evolving client expectations – the talent gap has become a critical issue that requires innovative solutions and a new approach.

Impact on operations

CA ANZ’s data shows shortages across 11 accounting, audit, and finance-related occupations in Australia alone, with a nationwide shortage of external auditors being particularly acute.

Research from Advancetrack, which provides offshoring and outsourcing solutions to accounting firms across the globe, shows a decline in enrolments in tertiary accounting programs that is not limited to Australia and New Zealand. It’s a global trend, with a 56% drop in the UK, 61% in the US, 54% in Canada, and 51% in Australia from 2012–2023.

According to the research, the impact of this drop in graduates has already had a severe impact on the operations of 45% of firms, with 74% saying the situation has worsened over the past three years.

It is also contributing to overwork and rising levels of stress, with 88% reporting the hours people worked were harming their work-life balance, and 30% describing their distress as severe.

An attractive career

Craig McKell, general manager for Advancetrack APAC, says responding to the skills shortage requires a multifaceted approach to build the pipeline of accounting talent and promote the attractiveness of the profession.

“We can see where things are heading, and it will take a coordinated effort from stakeholders and government to improve it,” says McKell. “We’ve got to make it an attractive option and promote the benefits to people, but it is going to take some time for that to come into effect.”

It is also important to address some common misconceptions about the profession, including long working hours, repetitive tasks, and that AI will take over accounting jobs, argues McKell.

Addressing the talent gap

While there are efforts underway to attract more talent, many firms are looking for immediate solutions to address the current gap. Offshoring and outsourcing have emerged as viable strategies to bolster capacity and maintain service quality, says McKell.

“More than 30% of all firms we spoke to said they currently use outsourcing options,” he says. “These options address two of the main issues. One is that there is a people problem, while the other is that it addresses a business process or workflow problem.”

However, these strategies are also not without challenges, McKell warns.

“This is not the long-term solution because it won’t be too long before the cheaper cost to outsource to the Philippines, for example, will cost the same as it would to hire someone who lives locally,” he says.

“It will get to a tipping point where it will be very hard to come back from, so we need to work on the problem now, before it is too late.”