Global Survey: Over 90% of Accounting and Auditing Firms Face Talent Shortage Challenges
A survey of more than 6,000 accountants and auditors worldwide by Caseware International reveals that talent shortage has become the fastest-growing challenge in the accounting and auditing industry. Over 90% of respondents said it is difficult to recruit skilled talent, and more than 85% believe retaining talent is not easy. The report also notes that the industry is responding to these challenges and enhancing client collaboration by accelerating the adoption of tools such as cloud technology and data analytics.
Toronto, February 21, 2023 — What is the fastest-growing challenge facing accounting firms and internal audit departments today? Over 90% of respondents point to recruiting and retaining skilled accountants and auditors. Some organizations are even forced to turn down business due to staffing shortages.
This conclusion comes from two reports recently released by Caseware International, a leading software provider. The company surveyed more than 6,000 accountants and auditors worldwide. The surveys show that, to address this challenge and enhance client collaboration, accounting and audit organizations are accelerating their adoption of advanced technologies such as cloud services, data analytics, and business intelligence.
The two reports — the 2023 State of Accounting Firms Trends Report and the 2023 State of Internal Audit Trends Report — reveal how accounting firms and internal auditors worldwide are adapting to the changing business environment. The reports collected feedback from more than 4,100 accountants and over 2,300 auditors.
Talent crunch intensifies
Nearly 35% of accountants ranked finding the right talent as one of their top three practice management issues in the past year, up from just 14% last year, making talent search the fastest-rising challenge in the industry.
Over 90% of accountants and 95% of auditors said recruiting skilled talent is "difficult" or "extremely difficult." In terms of retaining talent, more than 85% of accountants and 90% of auditors consider it "somewhat challenging" or "extremely challenging."
"With unemployment at historic lows, it's not surprising that accounting firms and audit teams are struggling to find and retain staff," said David Osborne, CEO of Caseware. "Companies seeking top talent need to adopt innovative strategies to address this challenge, such as improving compensation, implementing more flexible work policies, and adopting technology that enables employees to be more creative and productive."
Technology challenges also present
Other major practice management challenges mentioned by accountants relate to new ways of working, including communicating with clients in a virtual world (40%), using new technology (38%), and adapting to remote work (35%). Auditors, meanwhile, listed transitioning from manual to digital processes (38%) and adopting new audit technology (36%) as top issues.
"Accounting and audit professionals are still adapting to the technology they were forced to adopt due to the COVID-19 pandemic, and they are adopting new technology with greater urgency to enhance workflows, collaboration, and insights," said Davis Jackson, Chief Commercial Officer at Caseware.
The reports show that nearly 70% of accounting firms expect technology adoption to increase over the next two years, while more than 80% of internal audit teams are already using cloud technology.
"Clients today expect accountants and auditors to provide more than just numbers — they want deeper insights to guide business strategy. Therefore, it's not surprising that more professionals are turning to intelligent technology to strengthen their strategic advisory role," Jackson added.
Other highlights
2023 State of Accounting Firms Trends Report
- Nearly 80% of accounting firms use client collaboration tools, but about 52% say their client engagement process is only "somewhat efficient."
- Nearly three-quarters (74%) of accounting firms plan to adopt new cloud technology in the next two years.
- More than half (56%) of accountants have adopted business intelligence software to advise clients on financial and risk factors; another 30% say they plan to invest in such software.
2023 State of Internal Audit Trends Report
- Over 60% of auditors say the volume of advisory services they provided has increased over the past year.
- Analytics tools have become a key operational tool for more than 55% of internal audit teams.
- Nearly 42% of auditors say their biggest internal pressure is proving their value to the organization.
To download both Caseware trends reports for free, visit2023 State of Accounting Firms Trends Reportand2023 State of Internal Audit Trends Report。
