The accounting world is facing a significant challenge: a global shortage of qualified professionals. This depletion of skilled professionals has left small to medium businesses in the United States struggling to manage their financials. A dwindling talent pool could result in overburdened teams, hindered business growth, and costly errors for these companies.

Without a suitable team of trained accountants, even routine tasks like tax preparation, bookkeeping, and payroll can become sources of stress, leading to inefficiencies and potential compliance risks.  

As the shortage worsens and economic conditions become more complex, companies that hesitate to update their operations may find themselves trapped by inefficiencies, increased financial risk, and limited growth opportunities.

But there’s hope.

AI technology and outsourcing have emerged as powerful solutions that can ease the pressures of the talent crunch.

By embracing innovations, small businesses can regain control of their accounting needs and stay competitive.  

In a landscape where the competition is turning to modern solutions, doing nothing could cost more than you think. Continue reading to discover how you can future-proof your business.

Why the Talent Shortage is Getting Worse

The accounting profession is experiencing a sharp decline in new talent. Fewer graduates are entering the field, and the number of professionals sitting for the American Institute’s Certified Public Accountants exam dropped by 33% between 2016 and 2021. To make matters worse, about 75% of the CPA workforce is at retirement age, creating a critical gap in expertise.

The problem runs deeper for small accounting firms — often hiring graduates, only to lose these newly minted professionals to larger firms that can offer higher salaries and better benefits. This revolving door drains months of resources spent training rookie accountants and makes small firms feel like stepping stones rather than long-term career homes.

What’s more, the talent shortage is getting worse. In a recent report by Personiv, 83% of senior leaders reported a talent shortage — up from 70% in 2022 and 63% in 2020. Hiring becomes increasingly difficult with fewer professionals available, leaving small businesses overworked and under-resourced.

Unfortunately, this added stress only exacerbates the issue — creating more reasons for accountants to abandon the profession.

AI: A Game-Changer for Small Accounting Firms

Artificial Intelligence is making waves in the accounting sector by automating repetitive tasks that once required human input. For example, AI can handle data entry, detect fraud patterns, and generate real-time financial insights. These technologies save time and reduce the risk of expensive human errors, allowing staff to focus on more valuable work, such as advising clients on strategic decisions.

Far from replacing accountants, AI complements their skills. It takes over mundane tasks, freeing professionals to focus on high-level accounting work that requires human judgment.

For small firms, AI democratizes access to advanced tools that were once only affordable to larger firms. Popular platforms like QuickBooks and TurboTax have incorporated AI into their systems, giving small businesses a technological edge they wouldn’t have had a few years ago.

Outsourcing: A Smart Solution for Managing the Talent Crunch

Outsourcing is emerging as a strategic solution for small businesses facing a talent shortage. Firms can alleviate the burden of hiring, training, and retaining in-house accountants — relying on external experts already equipped with the necessary skills and technology.

For small and large businesses alike, outsourcing can lead to significant savings. Employers no longer need to worry about providing employee benefits like healthcare, paid time off, or parking expenses. Additionally, outsourcing partners often leverage the latest technology to provide a seamless, efficient, scalable service.

Outsourcing is particularly beneficial for property managers with increasingly tight profit margins. Engaging an external partner can help maintain financial accuracy while reducing costs, allowing managers to focus on growing their portfolios without being bogged down by time-consuming accounting tasks.

Is Outsourcing the Right Move for You and Your Business?

While handing over control of your accounting processes to a third party might seem daunting, it comes with substantial advantages. Outsourcing firms offer transparency, providing real-time access to financial data and reports, ensuring clients maintain control.

Cost is another concern that can be addressed through outsourcing. While hiring in-house accountants comes with additional costs like training and benefits, outsourcing offers a predictable and often lower expense. Instead of investing months training new staff members who may resign, you get immediate access to a team of highly trained professionals.

For instance, property management company LBPM has partnered with Accountant Anywhere for fifteen years. By outsourcing accounts payable processes, LBPM has delegated 2,500 monthly invoices and 700+ bank account reconciliations, allowing the team to scale efficiently without worrying about their recruitment process keeping pace with business growth. 

AI and Outsourcing: A Winning Combination

AI and outsourcing are set to reshape the future of accounting. As AI technology continues to evolve, more accounting tasks will become automated, helping businesses scale with fewer resources. This allows companies to provide better services to clients while focusing on growth.

Outsourcing will remain a critical strategy for employers dealing with the talent shortage. By combining AI efficiencies with outsourced expertise, firms can streamline operations, reduce costs, and enhance accuracy — all without inflating their in-house workload.

The global accountant shortage is undeniable, but solutions are available. AI is revolutionizing how small businesses approach accounting by automating routine tasks and freeing up staff for more valuable work. At the same time, outsourcing provides a cost-effective, reliable alternative to in-house hiring and training.

By leveraging AI and outsourcing, companies, including accounting firms and property managers, can stay competitive, scale their operations, and focus on their core business activities.

Ready to learn more about how these strategies can benefit your team? Connect with one of our experts today, and let’s discuss how outsourcing can transform your accounting operations.