With the ongoing shortage of accountants, rising costs, and the struggle to keep up with technology, Chief Financial Officers (CFOs) can turn to outsourcing to mitigate these problems.\u00a0<\/span>\u00a0<\/span><\/p>\n <\/p>\n \u00a0<\/span><\/p>\n A 2024 survey conducted by the Chartered Accountants Australia and New Zealand (CA ANZ)<\/span><\/a> revealed that over 80% of respondents reported vacancy fill rates below the expected level for accountant, auditor, and finance manager roles.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n The same survey also found that Australia’s six largest professional services firms are facing hundreds of unfilled positions for external auditors, general accountants, and management accountants.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n These findings highlight an underlying problem and an increasing demand for skilled finance professionals, underscoring the urgency for firms and CFOs to implement strategic hiring and retention solutions within their workforce.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n In this article, we\u2019ll examine the potential causes of talent shortage and how Australian firms can address the skills shortage in the country.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Here\u2019s what we\u2019ll cover:<\/span> <\/span><\/p>\n 1. Potential Causes of Accounting Shortage in Australia<\/a><\/p>\n 2. The Role of Outsourced CFO Support Services in Filling the Talent Gap<\/a><\/p>\n 3. How CFO Support Services Address the Talent Shortage<\/a><\/p>\n 4. When Should You Outsource CFO Services?<\/a><\/p>\n 5. What to Look for in the Right Outsourced CFO Support Partner<\/a><\/p>\n <\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n Several factors contribute to the accounting shortage in Australia:\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n \u00a0<\/span><\/p>\n The aging workforce in Australia has something to do with the ongoing accountant shortage.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n This is supported by an Australian government data showing that <\/span>over 130,000 people retired in 2022<\/span><\/a> alone, and by 2030 all Baby Boomers will be 64 or older.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n This means m<\/span>any of these seasoned accountants are leaving the workforce, creating a gap that younger generations are struggling to fill. <\/span>\u00a0<\/span><\/p>\n \u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n According to <\/span>a report by CPA Journal<\/span><\/a>, fewer students are choosing accounting as a major, leading to a decline in enrollment in accounting programs.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n A discussion from the <\/span>2023 PricewaterhouseCoopers Annual Accounting and Tax Symposium<\/span><\/a> also pinpoints the contributing factors to the student\u2019s diminishing interest in taking the accountancy program:<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n This survey only shows that unlike previous generations, younger professionals often seek careers with better work-life balance and greater flexibility, making traditional accounting roles less appealing to their eyes.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Accounting practitioners, particularly the younger generation, are facing high expectations and pressures to succeed.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n In a <\/span>survey conducted by Microsoft,<\/span><\/a> 62% of Australian workers are reported being burned out at work, compared to the global average of 48% of employees.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n Peta Sigley, CEO of Springfox, noted that the younger accountants are at <\/span>greater risk of burnout<\/span><\/a> due to high expectations and their tendency to take on excessive workloads. Many feel pressure to prove themselves, leading to unsustainable work habits.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n This is a worrying issue, as it indicates that firms are still falling short of providing their practitioners with the support, they need to manage their workload and maintain a healthy work-life balance. This is particularly concerning given the fact that many accountants work long hours and have high levels of stress associated with their jobs.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n The changes in immigration policies have made it harder for skilled foreign accountants to enter the Australian job market. <\/span>In fact, a major factor contributing to this issue is <\/span>Australia\u2019s annual cap<\/span><\/a> on skilled migrant workers.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n While migration intake has increased in recent years, discrimination and unconscious bias, including regulatory hurdles, make it harder for migrants to work within their chosen profession.\u00a0<\/span>\u00a0<\/span>This cap creates additional barriers for businesses that rely on international talent to address workforce shortages.<\/span><\/p>\n \u00a0<\/span><\/p>\n The same source also highlights that despite skilled migration programs, the number of overseas accountants entering the workforce remains insufficient to bridge the talent gap.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n This has placed additional pressure on the Australian government to develop new policies that will attract more skilled accountants to the country.<\/span>\u00a0<\/span>On top of this, visa restriction also complicates the entry for skilled accountants which made it more difficult for foreign accountants to qualify for long term work visas.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n <\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Now that we know the cause, let\u2019s now discuss a viable solution to mitigate the impact of the talent gap: outsourced CFO support services.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Outsourcing CFO support services involves partnering with an external firm that offers accounting support solutions. It aims to provide CFOs with assistance in completing day-to-day finance and accounting tasks, making it an ideal extension of an organization\u2019s accounting department. CFO support services cover everything from financial planning and reporting to compliance and budgeting.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n This approach not only will help the CFO to alleviate its stress from the shortage of skilled workers but will also provide access to a wider range of expertise and resources that might not be available in-house.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n![\"_DSC1482](\"https:\/\/www.dvphilippines.com\/hs-fs\/hubfs\/_DSC1482%20(blog.jpg?width=1434&height=600&name=_DSC1482%20(blog.jpg\")
<\/span><\/p>\nThe Accounting Shortages Challenge<\/span><\/strong>\u00a0<\/span><\/h3>\n
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Related: <\/span>5 Effective Tips to Combat the Accountant Shortage in Australia<\/span><\/a>\u00a0<\/span><\/h3>\n
Potential Causes of Accounting Shortage in Australia<\/span><\/strong>\u00a0<\/span><\/h2>\n
1. Aging Workforce <\/span><\/strong><\/h3>\n
2. Declining Interest in Accounting Programs<\/span><\/strong>\u00a0<\/span><\/h3>\n
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<\/li>\n<\/ul>\n3. Practitioners are Under Pressure<\/span>\u00a0<\/span><\/h3>\n
4. Migration Policies and Visa Restrictions<\/span>\u00a0<\/span><\/h3>\n
Read: <\/span>2025 and Beyond: How F&A Outsourcing Can Transform Australian Firms<\/span><\/a>\u00a0<\/span><\/h3>\n
The Role of Outsourced CFO Support Services in Filling the Talent Gap\u00a0<\/span><\/strong><\/h2>\n
Read our latest guide: <\/span>A CFO’s Guide to Outsourcing Finance and Accounting Services\u00a0<\/span><\/a>\u00a0<\/span><\/h3>\n