Accounting Talent Crisis: Why are 94% of firms struggling to grow?

The accounting industry is facing a crisis that’s no longer creeping under the radar but standing front and centre in firm boardrooms. A severe and growing shortage of skilled professionals is placing immense pressure on accountancy firms across the globe, directly affecting their ability to grow, serve clients, and remain competitive.

At the core of this challenge is the unavailability of talent. In a recent survey of accounting leaders worldwide, an overwhelming 94% confirmed that recruitment issues are now restricting their growth potential. Notably, nearly 40% of firms acknowledged the problem as “significant”, a term that signals deep operational implications. The inability to find the right people is not just a future risk—it’s a current roadblock that’s reshaping how firms plan and operate.

The situation is already affecting capacity. A striking 74% of respondents admitted they are unable to take on new clients or bill additional hours simply because they don’t have the people needed to deliver the work. This capacity ceiling comes at a time when demand for accounting services continues to grow, driven by regulatory changes, economic complexity, and an expanding global client base.

One of the more concerning trends emerging is the demographic shift within the profession. A growing number of accountancy firms are seeing more team members approach retirement age than those entering the field. In fact, 30% of firms now report this reversal, which signals long-term implications for talent continuity and experience retention. The industry isn't just short of new recruits—it's steadily losing its seasoned professionals too.

Compared to three years ago, 48% of firms feel that the talent shortage has either moderately or significantly worsened. This timeline suggests that the issue isn't tied to short-term events like the pandemic or economic cycles but is part of a more persistent and structural challenge within the profession.

The impact is far-reaching. With traditional recruitment no longer keeping pace, firms are rapidly adopting new models to close the gap. A growing number are looking overseas to extend their workforce. Today, 61% of firms are outsourcing work abroad, while a further 33% are offshoring—strategies once seen as optional but now increasingly viewed as essential for survival.

These shifts in staffing models are being accompanied by broader changes in how firms invest and operate. The industry is feeling the pinch of rising salary expectations, with 44% of firms experiencing increased wage pressures. But instead of relying solely on financial incentives to attract talent, many firms are opting for a more strategic route. Nearly half are now investing in technology upgrades, with 38% focused on digital transformation and automation. At the same time, 42% are increasing their investment in staff development to retain and enhance the capabilities of their existing teams.

This twin approach—optimising tech and empowering people—is emerging as a key strategy for firms aiming to future-proof their operations. As traditional recruitment models lose effectiveness, accountancy leaders are beginning to accept that hiring alone won’t solve the issue. It requires a holistic change in how services are delivered, supported, and scaled.

Firms are recognising that the old model of staffing up to meet demand is no longer sustainable. The new approach is built on flexibility, smarter resourcing, and deeper integration of global talent pools. This isn’t just about coping with the crisis—it’s about rethinking the profession for a more resilient future.

What’s clear is that the talent crunch is real, immediate, and intensifying. For firms still relying on traditional recruitment strategies, the message is becoming harder to ignore. The landscape has shifted. Firms that move swiftly to adapt—by embracing technology, broadening their resource base, and investing in skills—will be far better positioned to overcome today’s constraints and thrive in tomorrow’s market.