How harnessing technology can help accounting firms combat skill shortage

Is finding suitably skilled professionals to fill the vacancies in your practice high on your FY2025 to-do list? If the answer is yes, you’re in good company and you may have your work cut out for you.

Here in Australia, folk with accounting and finance credentials remain in seriously short supply, as they have for years.

CPA Australia chief executive Andrew Hunter sounded the alarm in late 2022 at a forum hosted by the Australian Small Business and Family Enterprise Ombudsman, telling delegates not enough Australians were entering the profession.

The “continued downward trend of domestic tertiary studies in accounting means it will be tough to close the skills gap”, Hunter warned.

Fast forward nearly two years and the situation is little changed. On the contrary: In March 2024, the three peak bodies representing the profession – Chartered Accountants Australia and New Zealand, CPA Australia and the Institute of Public Accountants – penned a submission to the Acting Commissioner of Jobs and Skills Australia, flagging the need for action.

“Accounting, audit and finance professionals continue to be in shortage Australia-wide and in most states and territories. In the absence of change these shortages will become worse and will be inadequate to cover forecast demand,” their letter stated.

“Addressing the skills shortages impacting the profession is a top strategic priority for the accounting bodies. We would like to work closely with JSA on addressing these persistent shortages and developing a joint approach to solving them.”

Unpacking the talent shortfall

Why aren’t more young people seeking careers in the finance sector? The answer lies both in the image of the profession and the realities of the role.

Historically, accounting has been seen as a respected and well-paid profession but it’s also been perceived as unexciting. And the qualifications aren’t easy to earn – an undergraduate degree followed by years of further grind and gruelling professional exams for those who aspire to ACA or CPA status.

And even after you’ve earned your stripes, unless you’re actively involved in advising business clients at an accounting firm, the job can be less than enthralling. Large volumes of manual work are still the norm for accountants in far too many practices. Legacy software remains prevalent and it’s a productivity blocker, forcing skilled professionals to spend longer than they need to on client matters.

Looking for solutions

So, what can the accounting sector and private practices do to funnel a greater number of high-calibre individuals into the talent pipeline?

Offering more attractive remuneration and benefits may be helpful, particularly if firms demand long hours and continuously high output.

So might the provision of hybrid working opportunities. With the right software and security protocols in place, team members should be able to operate from anywhere that has an internet connection. Facilitating remote working may also enable firms to broaden their talent pools to encompass out-of-area candidates.

Swapping legacy processes and technology platforms for next-generation alternatives can also help transform private practices into more dynamic and interesting places to work, by helping to offload the most tedious, time-consuming tasks associated with traditional accounting work.

Taking advantage of automation

That’s where technology such as automated tax and compliance software has a major part to play, allowing firms to do more with less, by eliminating many of the repetitive tasks associated with the compulsory preparation and lodgement of tax-related reports and returns. It increases the accuracy of tax calculations too – erasing the time needed to investigate anomalies and rectify mistakes.

Adopting automation technology frees finance professionals up to work on more challenging, higher-value tasks and matters for clients – think advisory and consulting, data analysis and research.

That’s an attractive prospect for young people looking for meaningful job stimulation and variety – the hallmarks of a satisfying career.

There’s evidence to suggest the platforms and programs they’ll be expected to use can positively impact individuals’ career decisions. According to one recent survey, more than 60 per cent of accountants feel technology is more important to job satisfaction now than it was two or three years ago.

Securing the talent your firm needs to thrive in FY2025 and beyond.

With Australia’s skills shortage likely to continue for some years, attracting new talent will be an ongoing challenge for Australian firms. Automation will make working in this setting a more rewarding proposition for up-and-coming generations of professionals. If you’ve yet to explore the benefits that the latest technology solutions could deliver for your practice, there’s never been a better time to get started.