Accounting Hiring Trends: Is There Still a Shortage of Accountants?

With how the industry is changing, client demands are increasing and finance teams across Australia are feeling the strain. Accounting firms today are expected to deliver faster turnaround times, maintain high compliance standards, and provide more value-added insight while operating with leaner teams.

Related: How CFO Support Services Address the Shortage of Accountants in AU

In fact, what many firm leaders are experiencing day to day is supported by workforce data:

• 46% of accounting teams in Australia are significantly short-staffed, according to a study by People2people.

• Around 45% of firms classify current staffing shortages as “severe” or “very significant,” another research revealed.

These figures show the persistent hiring challenges AU companies need to address to avoid structural issues affecting service delivery, staff retention, and long-term firm stability.

Understanding the Accountant Shortage in Australia

In a joint media statement published early last year, CPA Australia, Chartered Accountants Australia and New Zealand (CAANZ), and Institute of Public Accountants (IPA) announced their intention to cease the Accounting Professional Year Program due to the sharp decline in enrolments (from 7,122 in 2018 to enrollees dropped to 340 in 2024).

This trend points to two key issues:

a. A weakening entry pipeline into the accounting profession

The Professional Year Program has long served as a bridge between academic study and real-world accounting work, particularly for graduates seeking practical experience. Fewer enrolments mean fewer early career accountants entering the workforce through structured, supervised pathways.

b. Reduced long-term workforce sustainability

When foundational programs struggle to attract participants, it signals broader challenges around the attractiveness, accessibility, and perceived return of accounting career pathways. Over time, this contributes to fewer accountants progressing to the experience levels firms rely on most.

For finance leaders, this development suggests that current hiring difficulties are not solely the result of short-term market conditions. Instead, they reflect deeper, structural pressures affecting how accounting talent is developed and retained in Australia.

Common Causes of the Accounting Shortage in Australia

Aside from the declining participation in professional pathways, there are also other factors contributing to the accounting shortage in Australia. Together, these pressures help explain why hiring challenges persist across firms of all sizes.

1. Aging Workforce and Talent Gaps

A significant portion of Australia’s experienced accountants are approaching retirement age. As senior professionals exit the workforce, fewer mid-level accountants are available to step into review, supervision, and leadership roles. fewer mid-level accountants are available to step into review, supervision, and leadership roles.

This has created what many firms now experience as a “missing middle” problem. While firms may still attract junior staff and retain partners, there is often a gap at the experience level needed to manage day-to-day service delivery, review work efficiently, and mentor junior team members.

Without enough accountants in these mid-level roles, workload pressure concentrates at the top of the firm, slowing turnaround times and increasing operational risk within the organization

2. Declining Interest in Accounting as a Career Path

University enrollments in accounting-related degrees have declined over the past decades. In a discussion, the 2023 PwC Annual Accounting and Tax Symposium explains why fewer students are choosing accounting compared to other business-related fields:

a. Lengthy qualification requirements

The 150-hour education requirement, combined with professional certification, is often viewed as a long and demanding path before graduates can fully enter the workforce.

b. Perception of limited creativity

Accounting is sometimes seen as a more rigid and compliance-focused job, making it less appealing than careers in finance, consulting, or technology.

c. Less competitive early-career pay

Compared to majors such as finance and technology, accounting is often perceived to offer slower salary progression in the early years.

d. Concerns around representation and inclusion

A lack of visible diversity within the profession can discourage some students from viewing accounting as a long-term career option.

These insights suggest a broader generational shift. Many younger professionals now prioritise flexibility, work-life balance, and career mobility, making traditional accounting roles less appealing to their eyes.

3. Talent Migration and Career Shifts

Accountants today have more career options than in the past. Many are choosing to move into adjacent roles that offer different workloads, compensation structures, or flexibility.

Common pathways include:

• Corporate finance and in-house roles

• Consulting and advisory positions

• Technology, systems, and data-focused roles

While these moves broaden individual career opportunities, they also reduce the number of accountants available for public practice and service delivery. For firms, this increases competition for experienced talent and raises the cost of retention.

Together, these factors reinforce why the accounting shortage in Australia is not driven by a single issue. It is the result of overlapping pressures affecting both the supply of new accountants and the retention of experienced professionals.

Read: The Hiring Dilemma: Is Offshore Accounting Right for Your Firm?

Top Accounting Hiring Trends 

Now that you’ve seen the issues behind the shortage of accountants, the next step is understanding how hiring patterns are changing across the industry.

Rather than relying solely on traditional recruitment methods, many accounting firms are adjusting how they structure roles, define ideal candidates, and manage workload capacity in response to ongoing talent constraints.

Below are some of the key accounting hiring trends shaping today’s market:

1. Hybrid and Flexible Roles Remain in High Demand

With younger professionals making up a growing share of the workforce, flexibility has become a key expectation rather than a perk.

This shift is supported by research. A Deloitte survey found that while 49% of Gen Zs and 62% of millennials say work is central to their identity, work-life balance remains one of their top priorities and a major driver of job satisfaction.

As a result, hybrid work arrangements, flexible working hours, and fewer mandatory in-office days are becoming increasingly common across accounting firms.

For firms competing in a tight labour market, flexibility is often a deciding factor for candidates evaluating job offers.

Many experienced accountants are willing to stay or move based not just on compensation, but on how well a role fits into their wider lives. Organizations that align with this expectation are generally seeing stronger attraction and retention outcomes despite ongoing shortages.

2. Placing Greater Emphasis in Hiring Decisions

There's also a growing importance of soft skills alongside technical ability within the industry.

With leaner teams and heavier workloads, firms are increasingly looking for candidates who can contribute beyond technical knowledge alone. In practice, this means prioritising accountants who can:

• Communicate clearly with clients and internal teams

• Manage deadlines and workloads with minimal supervision

• Adapt quickly to changing requirements and regulations

• Work collaboratively across teams and service lines

Accountants with strong soft skills help reduce review bottlenecks, improve client experience, and ease pressure on senior staff. As a result, these capabilities are becoming a defining factor in candidate selection.

3. Outsourcing and Offshoring Become More Widely Adopted

Beyond direct hiring and skills development, many accounting firms are increasingly turning to outsourcing and offshoring to manage workload pressures and talent shortages.

As internal teams become stretched, external support is being used not only to expand capacity but also to provide additional operational perspective—helping firms identify inefficiencies or process gaps that may go unnoticed internally especially when teams are stretched thin.

Accounting firms commonly use outsourcing or offshoring to support:

1. Bookkeeping and transaction processing

2. Day-to-day accounting operations and reconciliations

3. Tax preparation and compliance support

By shifting routine and time-intensive work externally, internal teams can focus on higher-value activities such as review, advisory work, and client engagement.

For firm leaders and CFOs, this model can help:

• Reduce reliance on a highly competitive local talent market

• Create more predictable cost structures

• Maintain service quality during peak workloads

So rather than replacing internal teams, outsourcing and offshoring are increasingly positioned as complementary workforce models. When integrated effectively, external support absorbs workload pressure and allows internal staff to concentrate on strategic, client-facing responsibilities.

In a market where hiring experienced accountants remains difficult and unpredictable, this blended approach is becoming a sustained feature of how firms structure their workforce.

You may also read: A CFO's Guide to Outsourcing Finance and Accounting Services

How These Hiring Trends Directly Impact CFO Priorities 

While the abovementioned hiring trends are helping firms manage the accountant shortage, they also bring new considerations for CFOs and firm leaders.

Below are some of the key areas where these trends are directly influencing finance leadership decisions:

1. Cost Control and Budget Predictability

As competition for accounting talent increases, salary expectations and recruitment costs continue to rise. Hybrid work arrangements may widen the talent pool, but they do not always eliminate the financial impact of prolonged hiring cycles.

For CFOs, this means paying closer attention to:

• Salary inflation for experienced accountants

• Ongoing recruitment and onboarding costs

• The hidden cost of unfilled roles, including overtime and delayed work

2. Operational Risk and Compliance Confidence

Leaner teams can increase exposure to risk if workloads are not carefully managed. However, by focusing on soft skills and the right external support, CFOs can address:

• Reporting and compliance deadlines under capacity pressure

• Reduced review time when senior staff are stretched

• The risk of errors during peak reporting and tax periods

When accountants can communicate clearly, manage work independently, and rely on consistent external capacity, finance leaders gain greater confidence in both accuracy and delivery—despite ongoing staffing constraints.

3. Scalability and Long-Term Capacity Planning

Beyond managing risk and compliance, CFOs must also consider how today’s hiring decisions affect the firm’s ability to grow.

When accounting teams remain understaffed for extended periods, scalability becomes a concern. Even firms with strong client demand may struggle to take on new work if internal capacity is already stretched.

This is why having a modern approach in hiring— particularly outsourcing and flexible resourcing—plays an important role.

They allow CFOs to:

• Add capacity without committing to permanent headcount

• Support seasonal workload spikes without overloading core teams

• Maintain service quality as client volumes increase

Rather than reacting to hiring shortages as they arise, CFOs are increasingly focused on building finance operations that can scale predictably. This shift turns workforce planning into a strategic function, one that supports growth while protecting margins and delivery standards.

4. Team Sustainability and Retention

Aside from what we have discussed above, CFOs must also consider team sustainability. When accounting teams are under constant pressure, they are more likely to experience burnout, turnover, and lower productivity—issues that directly impact service quality and firm stability.

By focusing on flexible work arrangements, soft skills, and supportive resourcing models, CFOs can improve retention and maintain team morale. Key considerations include:

a. Preventing burnout

Ensuring workloads are manageable for senior and mid-level accountants

b. Maintaining engagement

Offering flexibility and professional development opportunities to keep staff motivated

c. Ensuring continuity

Retaining experienced staff helps preserve institutional knowledge and client relationships

d. Reducing turnover costs

Avoiding repeated recruitment cycles saves both time and money

The Bottom Line 

The shortage of accountants in Australia is not just a short-term problem – it is a long-term challenge caused by an aging workforce, fewer graduates, more rules and regulations, and people moving to other careers. To resolve this, organizations must have the right strategy and structure in place.

Here’s how you can act:

• Plan strategically – Hiring alone won’t fix the shortage. Firms need a clear plan to manage their workforce over time.

• Use flexible approaches – Hybrid work, outsourcing, and offshoring can help teams manage workloads without burning out staff.

• Keep your team strong – Supporting accountants with the right balance of work and flexibility helps prevent turnover and keeps service quality high.

• Think long-term – It takes time to train qualified accountants, so creating fluid talent acquisition and retention strategies is key to avoid gaps in skills and capacity.

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