Shortfall of Qualified Accountants: What Can We Do?

Shortfall of Qualified Accountants: What Can We Do?

Why a Shortage?

The accountant shortage in Australia is a growing problem that has been caused by several factors. The first cause of the shortage can be attributed to an aging population. As older accountants retire, there are fewer younger professionals entering the profession to take their place. This has led to a decrease in the number of qualified individuals available for hire and has created a gap in the market for accounting services.

The increased competition in the accounting field has driven up the pay scale and caused many potential candidates to pursue alternate career paths. This has created an imbalance between demand and supply in the accounting sector which has contributed to the current shortage of qualified professionals.

Overall, these factors have all combined to create a significant accountant shortage which could potentially cause long-term problems for businesses in the near future.

What is the Impact of an Accountant Shortage on Small Businesses?

With fewer accountants available to serve the needs of these businesses, it can lead to delays in filing taxes and other financial documents, as well as errors in bookkeeping and reporting. This could result in additional fees or penalties from government agencies due to incorrect filings or late payments. In addition, a lack of accounting staff may also mean that business owners are unable to take advantage of tax deductions or credits they would otherwise qualify for if they had access to qualified professionals.

Small businesses may also find themselves at a disadvantage when competing with larger companies that have more resources and access to better-trained accountants. Without the same level of expertise, small business owners may struggle with complex accounting issues and face difficulty with audits or other financial inquiries.

Overall, an accountant shortage can have a negative impact on small businesses by limiting their access to qualified professionals and causing delays in filing taxes and other paperwork. This could result in additional fees or penalties from the government, as well as putting them at a disadvantage when competing with larger companies that have better resources and more experienced accountants. Ultimately, this could lead to reduced profits for the business due to increased costs associated with hiring less-qualified personnel or not taking advantage of all possible tax deductions.

How Businesses Can Adapt to the Lack of Available Accountants

Businesses can adapt to the lack of available accountants by taking advantage of technology-driven solutions. Automation tools, such as accounting software and cloud-based services, can help businesses streamline their processes and reduce the need for manual work. Businesses should also consider outsourcing certain tasks to remote accounting professionals or utilizing trained outsourced accountants for specific projects. Additionally, businesses should look into Virtual CFOs/vCFOs who have experience in providing financial advice remotely without needing a physical presence onsite. Finally, many universities offer online courses in finance and accounting that employees can take to gain additional skills and knowledge that may prove beneficial when managing finances internally.

Strategies for Recruiting and Retaining Qualified Accountants

  1. Leverage Your Network: Reach out to your network of contacts, such as other accountants and professionals in related fields, to source qualified candidates. This is a great way to get referrals for potential applicants who may be interested in the position you are trying to fill.
  2. Utilise Job Boards: Posting job openings on popular job boards like Indeed or Monster will give you access to a larger pool of qualified applicants from which you can choose from when recruiting for an accountant.
  3. Offer Competitive Compensation and Benefits Packages: Offering competitive compensation packages that include salary and benefits will help attract and retain top talent in the accounting field. The more generous the compensation package, the better chance you have at recruiting and retaining qualified accountants.
  4. Invest in Training: Providing training opportunities for new and existing employees will help to ensure that they are up-to-date on the latest industry trends and best practices. This will also give them a sense of loyalty to your company, which can help with retention rates.
  5. Promote from Within: When you promote from within, it shows current employees that their hard work is being recognized, which encourages them to stay with the company long term. It also gives you an opportunity to find potential talent before having to look outside the organization for new hires.
  6. Develop a Mentorship Program: Setting up a mentorship program between experienced accountants and those who are just starting out can be a great way to build morale and help new employees develop their skills quickly. This will also give them an opportunity to learn from experienced professionals within your organisation, which can lead to better retention rates.

Should Businesses Outsource Accounting Services During a Shortage of Accountants?

Outsourcing accounting services during a shortage of accountants can be beneficial for Businesses looking to save time and money. It allows them to access the expertise of experienced professionals without having to hire or train new staff. Additionally, outsourcing can provide more flexibility in terms of cost and availability, as well as the ability to focus on core business activities rather than worrying about back-office tasks like bookkeeping or payroll processing.

When considering whether or not to outsource accounting services during a shortage, it is important for businesses to weigh the pros and cons carefully. On one hand, outsourcing can help reduce labour costs while still providing quality results; however, it also means entrusting sensitive financial data and processes with an outside party. Businesses should also consider the potential risks associated with outsourcing, such as data security and legal compliance.

Ultimately, whether or not to outsource accounting services during a shortage of accountants is a decision that each business must make based on its individual needs and goals. In many cases, outsourcing can be an effective way to access experienced professionals without having to hire additional staff or invest in training new employees. However, companies should always take into consideration the potential risks associated with outsourcing before making any decisions.

Boobalan Madhavan | AccSource | accsource.net

 

Boobalan MAdhavan
Latest posts by Boobalan MAdhavan (see all)

RELATED ARTICLES

Sign up to our eBulletin to receive regular updates, event invites and industry offers.

SUBSCRIBE NOW