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Building Teams in an Accounting Talent Shortage
The accounting talent shortage is real, and it’s not going away anytime soon. Nationally, companies are struggling with a diminished pipeline of qualified accountants while demand for financial expertise has only continued to increase. Recent data from AICPA emphasizes a steep decline in CPA candidates, but high-growth industries continue to ramp up hiring for their accounting function, increasing competition and escalating costs to the employer. However, teams that can pivot can still develop a strong, scalable finance team even in a tight labor market.
Understanding the Accounting Talent Shortage
The US accounting talent shortage stems from multiple factors converging at once. First, fewer students are pursuing accounting degrees or sitting for the CPA exam, causing incoming talent to dry up. At the same time, experienced accountants are departing traditional firms in search of increased flexibility and to avoid burnout and long hours, which depletes the workforce. And, to complicate matters further, the growing number of venture-backed startups and the growth of tech and SaaS companies have brought about unprecedented demand for skilled finance professionals. The outcome is an environment where even well-funded firms are struggling to hire and retain top-tier talent, leading to staggering finance team hiring challenges across the board.
Why the Old Hiring Model No Longer Works
Traditional methods of recruiting have become less and less effective. Drawing exclusively from local talent pools limits access to the skills and expertise that organizations need, especially when they are already in short supply. Lengthy recruitment cycles can delay urgent projects, while rising salaries and benefits inflate hiring costs. With older approaches, companies are at risk of overpaying and settling for underqualified hires, who may not provide the same level of insight and reliability to their finance functions. To overcome the hiring accountants shortage, organizations must approach their talent attraction and management strategy differently.
Strategies for Building Effective Teams During a Shortage
The US accounting talent shortage shouldn’t slow down a company’s growth, nor should it compromise a firm’s finance function. Rather, it’s an opportunity to step outside typical hiring practices. By rethinking how and where to look for talent, investing in technology, and developing existing teams, high-growth companies can overcome the shortage and come out with a more efficient and sustainable operation. Here’s how agile and forward-thinking companies can build effective teams in today’s landscape.
Look Beyond Traditional Talent Pools
Broadening your search internationally can be a game-changer. Being open to talent from outside the US allows you to tap into a pool of skilled talent, many of whom are also skilled in GAAP and have experience working with American companies. Contract and fractional roles can also be useful ways to fill gaps in your workforce quickly – without the full-time commitment and overhead. Companies that hire international talent are able to diversify their workforce and mitigate the risk of hiring in an uncertain market.
Invest in Technology + Automation
Using AI and advanced accounting allows finance team members to work smarter rather than harder. Routine tasks such as reconciliations, categorizing expenses, and processing invoices can all be performed by automation tools, allowing accountants to instead focus on analysis, broader oversight, and client-facing functions. When companies combine technology with human expertise, they are able to create more efficient workflows and alleviate the burden on their limited staff. That way, technology does not replace people; it simply serves as a multiplier for smaller teams to deliver better results.
Upskill and Retain Existing Staff
Retention is just as crucial as recruitment. Reduce turnover by investing in the team you already have through training, flexibility, and access to clear career development opportunities. These are all pathways to help retention and address institutional knowledge gaps. Upskilling your employees, particularly with technology and analytics skills, helps to position your team to evolve with developing demands in your field. The approach is proactive to help avoid compounding shortages in your organization and demonstrates a tangible commitment to staff development.
Build Agile, Scalable Teams
In a rapidly changing market, rigid hiring methods no longer hold up. Agile finance teams are designed to flex up or down based on workload and organizational priorities. This could mean managing a lean in-house core team with trusted global partners, or independent contractors, who can scale up or down as needed. By opting for this flexible model, you can better ride the waves of fluctuations in demand while maintaining performance levels and not burning budgets. Knowing how to build accounting teams that can flex will provide a critical competitive advantage.
Building for Long-Term
The accounting talent shortage signals an ongoing structural shift in the labor market. Organizations that act soon to modernize their hiring and retention strategies will be well-positioned for long-term stability and success. By leveraging global talent, making investments in automation, and enabling flexible teams, companies can keep their finance functions healthy and operational for the future. On the flip side, firms that restrict themselves and delay these changes will have to face competition for skilled accountants.
Conclusion
The US accounting talent shortage shouldn’t stop your business from growing. Innovative companies that diversify their hiring strategy and leverage technology will continue to build high-performing finance teams regardless of market constraints. The best finance function will incorporate global expertise, technology, and agility to thrive in adversity.
MAVI enables companies experiencing finance team hiring challenges to jump into a more modern team-building approach. Our AI-driven solution lets you tap into a global talent pool of highly skilled CPAs with deep GAAP knowledge and experience working with US firms, allowing you to bypass the domestic talent shortage, with added benefits of high talent ROI, zero overhead, and low turnover. Book a call today to build a scaling team.
