The shortage of accounting talent continues to plague the profession and appears to be getting worse. As the pipeline dries up, 83% of senior leaders report a talent shortage this year, up from 70% in 2022, with 10% this year saying it’s worsening, according to a CFO Pulse report released Tuesday by accounting solutions provider Personiv.

More than 300,000 accountants and auditors have left the accounting profession between 2020 and 2022,  a 17% decline, according to The Wall Street Journal.

As the outsourcing solution gains wider use, the report found 90% of surveyed CFOs outsource some of their accounting functions, and 90% of those respondents said they can easily find qualified accountants when they need them. That enables them to leverage specialized talent to maintain efficiency and focus on strategic goals. 

 “The accounting talent shortage is real, and companies are unquestionably looking for new ways to support and scale their teams,” said Matt Wood, global head of finance and accounting outsourcing at Personiv in a statement. “Understanding and exploring all options for filling roles without diverting focus from larger goals is crucial,” 

AI use

Another possible solution involves artificial intelligence, but the 278 U.S. finance and accounting leaders who responded to the survey are taking a cautious approach. While AI offers potential, finance and accounting leaders want to be careful with its implementation, highlighting a blend of human expertise and technology as the optimal solution. 

“Although many CFOs and other leaders are embracing the strategic use of outsourcing, many are still in wait-and-see mode regarding AI,” said the report,

Some are using AI-powered automation in accounts payable, as finance leaders are testing and getting comfortable with this new technology. 

When asked about their current opinion on the use of AI in the finance function, and how it has impacted their role and decision-making processes, the respondents offered several responses. “We do not use AI in the finance function,” said one respondent. 

“It is helpful with some of our AP functions; just need to find the time to evaluate it for other areas,” said another.

“Most likely will be useful,” said another. “Would like to know more about the experience of early adopters.”

Long hiring process

A 60% majority of all senior leaders and 67% of CFOs said they will need to hire staff accountants in the year ahead. Financial impacts are becoming more significant linked to a lack of accounting employees, resulting in incorrect reporting numbers and lost wages from overworked or underqualified staff. Gartner recently reported that one-third of accountants make “at least a few financial errors every week” because of capacity constraints.

Hiring is taking longer than ever before: The average timeline for job-listing-to-hire-time works out to 44 days, with difficult to fill positions taking as long as 120 days. While competitive salaries are certainly a factor for talent, the two most important factors employees are searching for include positive company culture and work-life balance. This means they’re more likely to leave if there isn’t enough support in the role they’re in. 

“Among the leaders that still do not outsource any roles or tasks, 100% report having problems finding talent,” said the report. “And although new advances in artificial intelligence and automation offer the potential to relieve some of the pressure by taking rote tasks off employees’ to-do lists, respondents indicated that they’re taking a cautious approach to implementing AI to solve their talent crunch.”