Why is there an accounting talent shortage?

The accounting talent shortage is being driven by widespread retirements, fewer students entering the profession, and increased demand for accounting and financial expertise across industries.

How does the accounting shortage affect businesses?

The shortage makes it harder for organizations to hire and retain qualified accounting staff, leading to increased workloads, delayed reporting, higher turnover risk, and potential compliance concerns.

Why are companies turning to outsourced accounting services?

Companies are turning to outsourced accounting services to gain access to experienced professionals, maintain continuity, and manage financial operations without relying solely on difficult in-house hiring.

What accounting functions can be handled through outsourcing?

Outsourced accounting services can support bookkeeping, financial reporting, payroll, tax compliance, budgeting, forecasting, and advisory functions depending on organizational needs.

Is outsourced accounting a temporary fix or a long-term strategy?

For many organizations, outsourced accounting has become a long-term strategy that provides scalability, expertise, and stability in an environment where accounting talent remains limited.

How does outsourcing help reduce risk during an accounting shortage?

Outsourcing helps reduce risk by ensuring consistent processes, experienced oversight, and timely financial reporting even when internal staffing is constrained.

The Accounting Shortage Explained: How Outsourcing Can Provide the Solution

January 22, 2026January 22, 2026

PYA Insights

Executive Contacts

Jennifer Blackwood

Zachary Doolin

Victoria Gentry

Businesses across the U.S. are facing a critical challenge: a shortage of accounting professionals. Retirements among experienced bookkeepers and a declining pipeline of new accounting graduates are leaving essential roles unfilled, leading to operational strain, errors in financial reporting, compliance issues, and a critical missing link in strategic decision making.

How Severe is the Accounting Talent Shortage?

The numbers provide evidence of the hiring challenges:

According to the Bureau of Labor Statistics, since 2020, more than 300,000 accountants and auditors (or 17% of the profession) have exited the workforce, intensifying the shortage.^[1]
The Association of International Certified Professional Accountants (AICPA) 2025 Trends Report reveals that bachelor’s degrees in accounting declined between 3.3% and 10.3% annually from 2021–2024, while master’s degrees dropped between 7.6% and 15% during the same period.^[2]

Additionally, the Bureau of Labor Statistics believes over 124,000 new job openings for accountants will be posted annually over the next 10 years,^[3] but in 2024, the AICPA reported only 55,000 new graduates to aid in filling these roles.^[2]

The combination of retirements and fewer graduates means critical accounting roles will remain unfilled, and businesses will run the risk of inaccurate and insufficient financial management.

What Options Do Companies Have to Fill Accounting Needs?

Companies challenged with open accounting positions to fill typically have two options:

Hire in-house accountants
Outsource accounting services to third-party experts

While hiring internally may be the traditional route, it will be a difficult path forward given the increasing shortage of experienced accountants for advanced roles, coupled with the shortage of qualified new accountants for entry-level roles.

By contrast, outsourcing offers advantages in today’s environment that can help alleviate difficulties with hiring in-house positions while still achieving experienced accounting support.

What Is Outsourced Accounting?

Outsourced accounting services are achieved by hiring third-party professionals to perform various financial tasks, including bookkeeping, payroll, tax preparation, financial reporting, and even strategic advisory services. Additionally, many third-party specialists offer high-level outsourced advisory services, such as business valuations, forecasting and budgeting, operational analyses, and strategic planning support.

Why Is Outsourcing a Viable Solution?

Outsourcing accounting services can be a practical and cost-effective choice, and in today’s environment, it is becoming the preferred solution:

Expertise on Demand: Outsourced firms employ teams of professionals with up-to-date knowledge, who provide solutions in accounting, tax strategies, and business operations
Predictable Costs: Outsourcing eliminates turnover gaps, providing consistent cost structure, without talent recruitment headaches
Checks and Balances: External teams offer additional oversight, reducing the risk of errors and fraud while lightening the internal workload
Scalability and Flexibility: Outsourced services can grow with the business, unlike a small in-house accounting staff who may lack specialized expertise for unique transactions
Additional Cost Savings: Engaging a team of specialists from a third-party firm on a fractional basis can be more cost effective than employing a full-time internal accountant
Advanced Insights: Many outsourced accounting experts deliver custom data-visualization reports that can provide actionable insights beyond a simple balance sheet and income statement

As the availability of accounting talent continues to decline, businesses are reassessing how they structure their accounting functions. Outsourcing is no longer a stopgap—it’s a strategic move. Outsourced accounting offers a practical, cost-effective, and future-ready solution for businesses that want to stay competitive and financially sound. By leveraging external expertise, businesses gain accuracy, compliance, and real-time financial intelligence without the burden of recruiting and retaining scarce talent.

PYA Can Help

If you are considering how to approach your accounting function in 2026, PYA’s consulting and accounting service teams are ready to help with tailored solutions that are right for your business.

Learn more!

Watch a video about PYA’s Client Accounting Advisory Services.

[1] U.S. Bureau of Labor Statistics (BLS). Current Population Survey (CPS), Table 11: Employed persons by detailed occupation — “Accountants and auditors,” 2020–2023 annual averages

[2] Association of International Certified Professional Accountants, & Chartered Institute of Management Accountants. (2025, October 27). 2025 Trends Report. https://www.aicpa-cima.com/professional-insights/download/2023-trends-report

[3] Bureau of Labor Statistics, U.S. Department of Labor. (2025, August 28). Accountants and auditors. Occupational Outlook Handbook. https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm