As Australia’s accounting firms continue to grapple with skills shortages, the ripple effects are being felt across the sector—from delays in meeting client deadlines to missing out on growth opportunities. With 88% of employers facing these challenges, the question on every firm owner’s mind is: how do we navigate these unprecedented times?
The Australian accounting sector plays a vital role in the economy, yet it’s facing a recruitment crisis that threatens its growth and sustainability. According to a Hays report from the start of the year 2024, approximately 88% of employers are facing skills shortages, which is affecting not just accounting firms but Australia’s broader economic outlook.
If you’re managing a financial services firm, you’ve likely noticed how hard it has become to find the right talent. Here are three key challenges currently affecting recruitment in the Australian accounting industry:
3 Key Challenges in the Australian Accounting Industry
1) Lack of General Interest in Public Practice Accounting
A primary recruitment hurdle in the Australian accounting landscape is the lack of general interest among prospective candidates, especially among young professionals.
According to a CPA Australia research, while the number of candidates studying banking and finance has seen a continual increase, accounting in general has seen a continual decline over the past 20 years. Factors contributing to this disinterest include misconceptions about the profession, perceived monotony, and the appeal of alternative career paths such as technology and entrepreneurship.
2) Scope of Tasks Undertaken by Graduates
Concerns persist within the Australian accounting sector regarding the scope of tasks undertaken by graduates. While graduates possess foundational knowledge acquired through academic programs, there often exists a gap between theoretical learning and practical application in real-world accounting settings. This disconnect can lead to inefficiencies, errors, and dissatisfaction among employees and clients alike.
3) Shortfalls in Skilled Migration
Another significant challenge facing the Australian accounting industry is the shortfall in skilled migration. Tightening immigration policies and global competition for skilled professionals are two of the main reasons why it is difficult for accounting firms to attract and retain top talent from overseas. In fact, it currently can take up to 3 years to obtain a skilled migrants visa. This compounds the skill shortage and makes it harder for the industry to meet clients’ changing needs in a complex global market.
After identifying the top three challenges facing the Australian accounting industry, let’s explore possible solutions to help your firm thrive and overcome the ongoing recruitment crisis.
Potential Solutions for the Recruitment Crisis
1) Offshoring as a Strategy
Offshoring and outsourcing are often discussed as potential solutions to the recruitment crisis, but the effectiveness of these strategies ultimately depends on how they are implemented.
There’s significantly more interest in accounting in other regions compared to Australia, leading to a larger talent pool overseas. However, we are also competing with high demand from markets like North America and the EU for skilled professionals.
The success in offshoring requires careful planning and integration into your firm’s culture. Investing in training that immerses offshore teams with Australian accounting standards is crucial to ensure their contributions meet the expectations of your clients.
By dedicating ample time to properly onboard and integrate these teams, offshoring can be a powerful, long-term solution to the recruitment crisis in the accounting industry. With the right approach, offshoring can not only solve your immediate staffing needs but also provide a dependable path for sustained growth.
While the ability to utilise AI and related tools like machine learning can significantly improve efficiencies in the accounting industry, there is still a large requirement for human involvement in these processes. This includes confirming the accuracy of transactions, mapping account transactions in first instance, and generating and reviewing final reports.
The real value of AI lies in allowing your existing talent to focus on higher-value activities, such as client advisory and strategic planning, rather than focusing on mundane tasks. To successfully integrate AI to your firm, consider integrating these tools gradually while also training your staff on how to make the most out of them. By combining AI’s efficiency with your accountants’ expertise, your firm can increase its capacity, minimise errors, and ultimately deliver better client outcomes.
Conclusion
The Australian accounting industry is facing a recruitment crisis that demands innovative and strategic solutions. By addressing key challenges like waning interest in public practice, bridging the gap in graduate skills, leveraging offshoring, and integrating AI thoughtfully, firms can not only survive but thrive in these challenging times.
Navigating this complex environment requires adaptability and proactive measures. If your firm is looking for ways to overcome these recruitment challenges and take advantage of offshoring or AI solutions, let’s start a conversation today.
Contact us now to find out how we can help your firm stay ahead and secure the talent you need.
