Last updated: 24 Jun 2024 11:30 Posted in:
The accounting industry across the globe is facing an ‘existential’ skills crisis, with an ‘ever-widening chasm’ between increasing demand and the supply of labour.
That’s one of the conclusions of the recently published Accounting Talent Index, a new global research study conducted for outsourcing specialists Advancetrack. It found that almost half – 45% – of firms are being ‘severely’ or ‘significantly’ affected by skills shortages.
A total of 74% of respondents said that compared with three years ago, labour shortages have got significantly worse. The report said reasons for this ranged from more competition for talent from commerce firms to fewer people attending and graduating from university, as well as the effects of the Covid-19 pandemic and an ageing workforce.
Vipul Sheth, MD of Advancetrack, said: “Our Accounting Talent Index shows how the acute lack of accountants has emerged as a critical bottleneck, and its impact has been nothing short of severe, impacting businesses, institutions and economies on a global scale.
“It’s made clear in no uncertain terms how everyone, from multinational corporations to SMEs right through to the hundreds of thousands of accounting firms around the world servicing them, are struggling under the weight of these significant challenges. It’s a perfect storm.
“Without skilled practitioners and a robust sector to oversee financial transactions, tackle regulatory complexities, and ensure compliance, the stability of modern commerce is genuinely at risk.”
Some 61% of respondents thought the Covid-19 pandemic had made an “appreciable difference” to accessing industry talent. It said smaller firms are especially bearing the brunt – largely unable to compete against the salaries and prestige offered by mid-tier accountancy firms and the Big 4 accounting giants, with the latter also struggling to compete against other industries.
Other day-to-day issues for accounting firms include needing to pay higher salaries, challenges in recruiting and retaining staff, limiting the services they offer and being forced to not take on new clients.
Vipul added: “Given these challenges, it’s crucial we engage with governments, industry leaders, and influential stakeholders to reinforce the critical role that accountants play in maintaining the integrity and accountability of financial systems.
“While the solutions are not exhaustive, or all yet identified, significant strides can be made by investing in the development of accounting talent, rethinking recruitment approaches, and promoting the essential role of accountants in supporting economic stability.”
“Without skilled practitioners and a robust sector to oversee financial transactions, tackle regulatory complexities, and ensure compliance, the stability of modern commerce is genuinely at risk.”
Vipul Sheth, Managing Director, Advancetrack