Why the Accounting Talent Shortage Impacts Every Industry

Finance and accounting teams are the backbone of every organization. They manage compliance, safeguard accuracy, and provide the insights leaders need to make smart business decisions. But behind the balance sheets and reports, a major challenge is growing: the accounting talent shortage.

Once thought of as a problem isolated to public accounting firms, the shortage is now impacting businesses in every industry…manufacturing, healthcare, technology, retail, nonprofits, and more. When critical finance and accounting roles go unfilled, deadlines slip, reporting slows, and already overextended teams face burnout.

The State of the Accounting Talent Pipeline

The numbers tell the story:

• 340,000 professionals left the accounting workforce between 2019 and 2023, over 17% of the total profession (AICPA/NASBA/NPAG).
• Bachelor’s degrees in accounting continue to decline, shrinking the pool of new entrants before they even start their careers.
• According to the 2024 CFO Pulse Survey, 83% of finance leaders report difficulty finding qualified talent, up sharply from 70% just two years earlier.

At the same time, demand isn’t slowing down. Every company must meet quarterly closes, year-end reconciliations, tax filings, audits, and compliance requirements. These pressures create fierce competition for the limited pool of available professionals.

Why the Shortage Impacts All Industries

1. Finance & Accounting Is Universal

Every organization, whether a small nonprofit, a fast-scaling startup, or a Fortune 500 company, needs accurate accounting and timely reporting. There is no industry exempt from the need for strong finance and accounting teams.

2. Specialized Skills Are in Short Supply

Roles requiring CPA licensure, SEC reporting, revenue recognition, payroll expertise, or ERP system knowledge are particularly difficult to fill. As more experienced professionals retire or transition into consulting or technology roles, the gap widens.

3. Ripple Effects Multiply

When accounting & finance positions remain vacant:

• Reporting slows down, impacting decision-making
• Audits and reconciliations take longer, risking compliance gaps
• Overtime demands rise, increasing burnout and turnover
• Labor costs climb as salaries, bonuses, and contract rates are pushed higher in a competitive market

The Hidden Costs of Vacancies

The impact of unfilled roles is more than an HR issue; it’s a business risk. Consider the consequences of prolonged vacancies:

• Delayed closes can erode confidence from investors, boards, and lenders.
• Compliance risks rise when audits or reconciliations are rushed.
• Turnover accelerates as overburdened employees seek less stressful roles elsewhere.
• Costs escalate as organizations turn to last-minute hiring or premium contract rates.

These challenges compound during peak deadlines like quarter-end, year-end, benefits enrollment cycles, or major projects like system migrations or acquisitions.

Why Early Hiring Works

With such a shortage of skilled talent, waiting until the last minute is not an option. Acting early gives organizations a measurable advantage:

• Wider candidate pools – More time means access to both active and passive candidates before competitors secure them.
• Better onboarding – Early hires can ramp up gradually, learning systems and processes before crunch time.
• Flexibility to adapt – If priorities shift, contract talent can be reassigned or scaled back without disrupting operations.
• Reduced costs – Hiring proactively minimizes overtime, costly turnover, and the risk of financial errors.

A Smarter Staffing Strategy

To stay ahead of the shortage, finance and accounting leaders need to build a staffing plan that protects accuracy, compliance, and team well-being:

1. Forecast demand. Map out upcoming projects, reporting cycles, and close dates.
2. Engage a specialized partner. Work with recruiters who focus exclusively on finance and accounting talent, like PrideStaff Financial.
3. Develop a talent bench. Build relationships with pre-vetted candidates before positions open.
4. Blend full-time and contract staff. Use flexible staffing models to scale resources to your workload.

Protect Your Accounting & Finance Team from the Shortage

The accounting talent shortage isn’t going away anytime soon, and its effects are being felt across every industry. By acting early, finance and accounting leaders can secure the talent they need, protect their teams from burnout, and keep critical operations running smoothly.

Need Specialized Accounting Support?
At PrideStaff Financial, we specialize in recruiting top accounting and finance professionals. Whether you need a full-time hire or contract staff to support closes, audits, or special projects, we can help. Complete this short form and connect with one of our offices today.