Accounting firms list staffing as top challenge
Hiring, retaining and developing staff is still the most significant challenge facing accounting firms, a recent survey reveals.
A recent survey by NAB has found that 69 per cent of accounting firms consider hiring, retaining and training staff to be a major challenge for their business. This was followed by time management at 39 per cent and being paid by customers in a timely way at 32 per cent.
Stress and anxiety and balancing work and time with family and friends were also listed as part of the top five challenges, the 2024 Accounting & Financial Planning Report said.
NAB professional services banking executive Adam Holster said the deadline-driven nature of accounting can create stress in firms.
“While that’s always been the case, increasing client expectations, the complexity of compliance and a heightened awareness of employer obligations in maintaining positive mental health make it a priority for firms to act in a way that supports their people,” said Mr Holster.
Everperform chief executive Daniel Spitty said a lot of the stress and wellbeing concerns could be alleviated if partners, managers and staff had clearer conversations around expectations and goals.
“Staff would then be able to better direct their attention to the most important tasks, helping them to focus and to experience less stress and improved wellbeing,” said Mr Spitty.
Analysis of Everperform’s customer data shows that just 35 per cent of all accounting staff achieved their own performance expectations last year.
“However, this number is 46 per cent for partners and 42 per cent for managers, suggesting that management’s performance expectations are not filtering through,” said Mr Spitty.
Mr Spitty said that managers and partners may have been reluctant to have these conversations with their staff given that 2022 was the year of retention.
“Due to the tight employment market, partners and managers may have been concerned staff would leave if they’re honest with their people expectations,” he said.
“However, having clear goals and being supported to do their role effectively actually improves wellbeing overall.”
Staff the number one enabler of growth
The NAB report also found that hiring, retaining and developing new staff is the number one enabler of growth for accounting firms.
The ongoing shortfall in the number of available professionals therefore creates a significant challenge for firms.
A recent submission by CA ANZ and CPA Australia noted that 50,000 accountants will approach retirement age in the next 15 years and that graduate numbers were insufficient to cover this leak, particularly given that demand for the accounting profession is growing.
NAB state business banking executive, Naomi Stuart, said firms were turning to various solutions.
“We’ve seen partners and senior staff at regional firms working really long hours to cope with demand and inadequate staffing levels but we’ve heard a few success stories of regional firms bringing in skilled people from overseas to fill any shortfalls,” said Ms Stuart.
“There’s also a trend towards outsourcing and offshoring to complete some of the more straightforward tasks that don’t require consulting.”
Mr Holster said some firms are also broadening their service offerings as a way to offer opportunities for staff development and increase retention.
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