Mid-Sized Accounting Firms Globally Grapple With Staff Shortage

Many mid-sized accounting firms are losing business for lack of staff and turning in part to technology to plug the gaps, according to a new global survey.

Close to three-quarters (73%) of the firms surveyed by Advancetrack said staff shortages were having a severe impact, and forcing them to turn away business. A similar number said they were trying to hold onto staff and looking to technology to manage capacity.

The UK outsourcing company Advancetrack surveyed 500 accountants in the UK, Australia, US, and Canada in March and April. They worked for firms with up to 30 partners.

• “The severity of the talent shortage shows little sign of abating,” the report said, adding that 45% of respondents said they were being harder hit by staff shortages than three years ago.
• The report flagged problems with the accountant pipeline, noting that the number of accounting students has fallen in both the UK and US in recent years. Most of the firms in the survey said they were worried about their staff’s workloads.
• Firms are trying to hold onto and develop existing staff, with many investing in training and development. Firms also are adopting technology and outsourcing or offshoring certain accounting tasks. However, only 16% of the mid-sized firms are actively investing in artificial intelligence, the survey found.