In today’s fast-evolving financial landscape, one of the most pressing challenges faced by organizations worldwide is the shortage of skilled accounting professionals. Leaders across the finance and accounting sector are witnessing a widening talent gap—fewer trained accountants entering the workforce while seasoned CPAs steadily retire or shift careers.

As financial regulations grow more complex and compliance demands intensify, the shortage of qualified accountants poses a real threat to business stability and economic growth. This raises an important question: Is there a sustainable solution?

This blog explores the root causes of the accountant shortage, its impact on global businesses, and how investment in technology and automation can help bridge this gap.

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Why Is There a Global Shortage of Accountants?

1. Increasing Demand Across Industries

Rapid changes in tax laws, regulatory requirements, global reporting standards, and the complexity of financial transactions have increased the demand for qualified accountants. Businesses of all sizes now rely heavily on CPAs for compliance, financial controls, and strategic insights.

2. Declining Enrollment in Accounting Programs

Universities worldwide report decreasing enrollment in accounting-related degrees. Fewer students are choosing accounting as a career due to perceived long working hours, exam difficulty, and traditional views of the profession as “routine” or “paperwork-heavy.”

3. Retirement and Career Shifts

A significant portion of CPAs, especially in the US, UK, Ireland, and Europe, have reached retirement age. Many others have shifted to tech and finance roles for better pay and growth opportunities—widening the demand-supply gap.

4. Reduced Attraction as a Career Option

Students today prefer technology, finance, and analytics careers. Requirements such as the 150-hour rule for CPA licensure in the US have also discouraged many aspirants from pursuing accounting.

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Countries Experiencing the Most Severe Shortages

United States

• Over 300,000 accountants left the profession between 2019–2021 (WSJ report).
• CPA exam takers hit their lowest numbers since 2006.
• Bachelor’s and master’s accounting degree completions dropped significantly in 2021–2022.

United Kingdom & Ireland

• Accountancy students fell 3.5% in 2022.
• Applications for accounting jobs are down by 30%+.
• Ireland has officially listed accountants and auditors as critical shortage occupations.

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6 Major Ways Accountant Shortages Impact Businesses

1. Higher Audit Risk

With fewer experienced CPAs, companies face increased audit errors and concerns over reporting accuracy.

2. Increased Compliance Challenges

Talent shortages lead to financial reporting errors, potential penalties, and stakeholder concerns.

3. Declining Accuracy in Financial Statements

Companies are disclosing more material weaknesses in internal controls due to lack of qualified staff.

4. Workload Pressure on Existing Teams

Remaining staff face burnout, longer hours, and higher chances of operational mistakes.

5. Reduced Stakeholder Confidence

Investors depend on accurate reporting. Poor financial controls affect credibility and valuation.

6. Challenges in Strategic Planning

Lack of skilled professionals impacts budgeting, forecasting, and informed decision-making.

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What Is the AICPA Doing to Address the CPA Shortage?

1. Revised CPA Examination (2024 Onwards)

The new CPA Evolution Model integrates technology skills with traditional accounting knowledge.
Students must pass:

• AUD
• FAR
• REG
  Plus one discipline: BAR, ISC, or TCP.

2. Experience Learn & Earn (ELE) Program

Allows students to earn up to 30 credit hours through online coursework combined with practical work experience—helping them meet the 150-hour requirement.

3. Changing Perception of Accounting Careers

Programs aimed at high schools, colleges, and educators highlight the evolving, tech-driven nature of modern accounting.

4. Supporting Firms in Talent Retention

AICPA assists organizations in creating inclusive work cultures and modern workflows to attract and develop young talent.

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How Can Organizations Overcome the Accountant Shortage?

1. Invest in Technology and Automation

Automation helps accountants eliminate repetitive tasks and focus on:

• Financial analysis
• Compliance
• Cost control
• Strategic planning

AI and machine learning enhance accuracy and accelerate workflows—reducing dependency on large teams.

2. Offer Competitive Salaries & Benefits

Fair compensation, flexible work models, and strong benefits improve retention and attract new talent.

3. Rethink Recruitment Strategies

• Partnering with colleges
• Offering internships and part-time roles
• Supporting students with education assistance

These efforts help build a sustainable future talent pipeline.

4. Prioritize Continuous Training & Upskilling

Accountants now require skills in:

• Data analytics
• Automation tools
• Visualization
• Cognitive computing
• Machine learning

Continuous learning ensures teams stay relevant and productive.

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Impact of the Accountant Shortage on the Global Economy

A shortage of skilled accountants impacts:

• Business performance
• Financial reporting reliability
• Capital markets
• Investor confidence
• National and global economic stability

Organizations must proactively address these challenges to maintain strong financial systems.

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How HighRadius Helps Automate Accounting Workflows

HighRadius offers an AI-driven Record-to-Report (R2R) solution that automates up to 50% of manual accounting tasks, delivering:

• 30% reduction in days to close
• Automated reconciliations
• AI-based anomaly detection
• A no-code platform (LiveCube) for building workflows without technical support

This modernization empowers accountants to shift from data entry to strategic financial roles.

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FAQs

1. Will technology replace accountants?

No. Automation handles repetitive tasks, allowing accountants to focus on strategy and analysis.

2. How is technology transforming accounting roles?

AI, cloud tools, and analytics help accountants improve accuracy, collaboration, and decision-making.

3. Is there a global shortage of accountants?

Yes. Retirements, reduced enrollment, rising demand, and career shifts have deepened the shortage.

4. Will automation replace the need for accounting teams?

Automation supports—not replaces—accountants by enhancing efficiency and reducing workload.