resume-genius-9si2noVCVH8-unsplash

The Accounting Skills Crisis: Impact and Solutions for Australian Businesses

01/19/2025 | Trevanta |

Current State of the Profession

The accounting profession in Australia is facing an unprecedented talent shortage, which has been ubiquitous across businesses of all genres. The skill shortage has transcended specialisations—taxation, management accounting, auditing, and general accounting services.

Key Drivers of the Crisis

  1. Declining Graduate Numbers: An average of 10,000 fewer accountants have entered the profession annually than a decade ago.
  2. Aging Professional Base: Many experienced accountants are nearing retirement, which challenges knowledge transfer.
  3. Digital Transformation: The profession is fast changing with automation, AI, and cloud accounting; hence, new skill sets are required.
  4. Industry Perception: Traditional views of accounting as a purely numerical profession turn off potential candidates who seek dynamic careers.

Impact on Australian Businesses

The skill shortage presents a few critical challenges:

  • Cost Pressures: Increasing competition for talent drives pay expectations and business costs up.
  • Processing Delays: Core finance functions face critical bottlenecks impacting business operations.
  • Compliance Risks: Poor access to quality professionals exposes regulatory and tax compliance risks.
  • Reduced Strategic Planning: Lower internal capacity for analysis and strategic decision-support

Industry Responses and Adaptations

Organisations are responding to these challenges in several ways:

1. Combination of Hybrid Workforce Models

  1. In-house + outsourced accounting services
  2. Flexible working arrangements to attract the best talent
  3. Leverage global talent pools where necessary

2. Technology Integration

  • Automation of routine accounting tasks
  • Cloud-based accounting platforms
  • Data analytics for better visibility into finances

3. Professional Development

  • Internal training programs
    • Continuing education support
    • Technology skills developed in parallel with traditional accounting skills

4. Regulatory Compliance Focus

  • Strengthen compliance frameworks
    • Internal controls strengthened
    • Implement ESG reporting capabilities

Future Outlook

The accounting profession is transforming rapidly, requiring a balanced approach that harmonises traditional expertise with contemporary technological capabilities. Success in the mitigation of the skill shortage will most probably come from the following:

  • Innovative training and development programs.
  • Increased integration of technology solutions.
  • Evolution of business models to satisfy changing workforce preferences.
  • International collaboration and knowledge sharing.

Organisations should focus on building resilient financial operations through technology adoption, workforce development, and strategic partnerships.

Contact Information

For information on how to address these issues, please contact:

Phone: 02 9127 1394

Email: [email protected]