The U.S. is facing a severe finance and accounting talent shortage, with around 340,000 positions unfilled. According to recent surveys, about 80% of CFOs grapple with this talent gap. 

Peak periods like tax season exacerbate the problem, making it even harder to secure top-notch financial talent. Meanwhile, the unemployment rate for many finance and accounting roles trends below the national average of 3.9%, further complicating the job market.

Finding qualified accounting professionals is challenging, and some companies are looking to outsourced accounting as a solution. But what is causing the accountant shortage in the first place?

Why Is Finding Accounting Talent So Challenging Right Now?

The accounting and finance industry faces a multifaceted talent shortage driven by an aging workforce, declining college enrollments, an increasingly complex business environment, and more. Here’s a quick look at the most influential factors:

The Talent Crunch

Over 300,000 U.S. accountants and auditors left their jobs from 2020 to 2022 — a 17% decline. While retiring Baby Boomers account for some of this exodus, the U.S. Bureau of Labor Statistics (BLS) also reports that accountants aged 25 to 54 are also exiting the profession at alarming rates.

Additionally, according to BLS data, about 28% of accountants and auditors were aged 55 or older in 2023. As a significant portion of the workforce approaches retirement age, the industry is likely to face a dire shortage of accountants and finance professionals that younger workers may not immediately fill.

Increased Demand 

Globalization, technological advancements, and the complexity of modern business have increased the demand for highly skilled accountants. More and more companies are seeking experienced professionals who can navigate these challenges and drive strategic financial decisions.

Decline in College Enrollment

While demand has surged, the number of students entering the accounting workforce has dwindled. The 150-hour rule for CPA licensure, low starting wages, and highly publicized industry layoffs deter many young people from pursuing careers in accounting.

College enrollment is already down, and the situation is likely to worsen with the anticipated drop-off in college enrollments from 2025 to 2037 due to lower birth rates. This will further strain the already limited talent pipeline, making it even more difficult for companies to find qualified candidates.

The Need for Industry Knowledge

Accounting and financial roles sometimes require specialized industry knowledge. Professionals need to understand industry-specific regulations, platforms, and other unique aspects of the businesses they serve. This requirement narrows the pool of potential candidates even further.

The Technology Gap

Many companies require candidates to be proficient in a wide range of technologies, from AI to ERP systems. However, the other side of that coin is that many financial professionals seek workplaces with cutting-edge technology, which some companies have yet to implement. This mismatch between employer and candidate expectations further complicates the recruiting process.

Fierce Competition

With such high demand, companies are all vying for the same limited pool of candidates, competing to offer the best compensation packages and benefits. This fierce competition makes it challenging for companies with fewer resources to attract and retain top talent.

Top Considerations for Financial Services Candidates

When looking for the ideal candidate, here are a few key considerations to keep in mind:

Analytical and Problem-Solving Skills

Financial professionals need to identify patterns and challenges from incoming data. They should also be adept at conflict resolution, finding creative solutions, and addressing discrepancies, errors, and disputes effectively.

Communication Skills

Accounting and finance professionals must be able to communicate effectively, ensuring all parties — including those without a strong finance background — understand vital financial data and its implications.

Technological Proficiency

In the rapidly evolving, tech-driven business landscape, candidates should be well-versed in a variety of technologies, including:

• Cloud computing
• Data analytics
• AI & robotics
• Data visualization tools
• ERP systems

When to Consider Finance and Accounting Outsourcing

Given the challenges in finding skilled candidates, outsourcing financial services and accounting can open up new possibilities and help you overcome the financial services talent shortage. Outsourcing may be a good option for your organization if any of the following are true:

• Daily operations have become unmanageable.
• Your business is scaling quickly and needs additional support to maintain efficiency.
• Specialized talent is unavailable internally.
• Accounting and finance activities are taking focus away from your core business functions.
• Late payments, revenue collection issues, and / or financial reporting inaccuracies are recurring problems.

Key Reasons to Outsource Financial Services and Accounting Duties

Outsourcing financial operations presents numerous advantages for companies seeking efficiency and flexibility. 

First, it serves as a cost-effective alternative to the lengthy, resource-intensive process of recruiting and hiring full-time employees (although cost shouldn’t be your sole concern — quality should also be a top priority).

Leveraging outsourced services can also give your organization access to a diverse array of skills and expertise from a team of professionals rather than relying on a single in-house accountant. This approach allows you to effortlessly scale your financial operations with the agility to adjust resources as needed.

Explore more benefits of outsourced finance and accounting. 

The shortage of accounting talent is a significant challenge, but understanding the root causes can help you develop effective strategies to overcome it. Whether you decide to invest in technology to attract tech-savvy candidates, focus on specialized training, or consider outsourcing, the key is to stay proactive.

SupportNinja offers quality, value-centric outsourcing solutions, ensuring you can access the talent you need, and positioning your organization for sustainable growth and success.

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