Key Insights:
- Accounting talent shortages are disrupting reporting and internal controls, raising risk.
- Outsourcing and automation are key stopgaps.
- Now a governance issue: reinforce controls and adopt flexible models.
No one would expect a national auto parts chain to struggle with the mechanics of filing a 10‑Q, but that’s what happened when Advance Auto Parts told the SEC it would be late with a quarterly report. The company cited turnover in its accounting ranks, a resulting material weakness in internal controls, and the need to rely on outside help to complete the filing. It was a small delay with a bigger message about the fragility of today’s finance and accounting benches.
The situation underscores a broader, emerging risk: a nationwide accounting talent shortage that has started showing up in delayed SEC filings and is now spilling over into a much broader impact on company financial reporting. Community financial institutions (CFIs) are starting to feel pressure on their own internal financial controls and operations, as are some of their small business clients.
How Widespread Is the Accountant Shortage?
Recent data points to a structural squeeze in accounting talent, and the numbers are hard to ignore. In a survey by Robert Half, nine out of 10 finance and accounting leaders reported difficulty hiring and retaining accountants, with 15% calling the situation critical because they had multiple roles they simply could not fill and 30% warning that the shortage was increasing compliance risk inside their organizations. Since the profession’s employment peak in 2019, the number of practicing accountants has fallen by roughly 17%, while the pipeline for new CPAs is shrinking as exam candidates have declined by more than a quarter over the past decade. At the same time, the profession is aging: estimates suggest that around three-quarters of CPAs are Baby Boomers, and their retirements are accelerating demand for new talent.
For CFIs and small businesses, this accountant squeeze is more than an HR headache. Certified accountants sit at the center of financial reporting and compliance, and when they are in short supply, reporting slows, financial visibility weakens, and underwriting becomes harder to execute with confidence. Rising salaries and tighter competition for talent further strain smaller institutions, forcing them to choose between paying up for scarce expertise, stretching already thin teams, or accepting higher operational and regulatory risk.
What Can CFIs Do to Address the Accountant Challenge?
CFIs and small businesses can partner with outsourced accounting firms or fractional CFO services. In the Robert Half survey, about a fourth of organizations said they outsourced compliance tasks to keep up. 90 percent of CFOs are now outsourcing some accounting functions.
Outsourcing
Not every function is equally suited to outsourcing, but many CFIs can start by:
- Offloading routine, back-office tasks such as AP processing, certain reconciliations, fixed-asset accounting, or basic bookkeeping for treasury services clients.
- Using outsourced or fractional controllers/CPAs for technical accounting support, audit preparation, and complex projects, while keeping GL ownership and key approvals in-house.
- Engaging specialized providers for regulatory reporting support (e.g., call report preparation or review), with management retaining final sign-off and documentation.
- Expanding treasury management and advisory services to help small business clients with their accounting challenges.
AI and Automation
Also, automation and AI can be deployed to carry out mundane tasks that have been handled manually, freeing up accountants to do more analytical or vital work. The most immediate wins are usually straightforward:
- Automated AP and expense workflows that reduce manual entry, approvals chasing, and spreadsheet tracking.
- GL reconciliation tools that match transactions, flag exceptions, and provide dashboards instead of manual tie-outs.
- Data integration tools that pull loan, deposit, and GL data into a single source for reporting and analysis, reducing copy‑and‑paste work.
Guardrails
At the same time, CFIs need guardrails:
- Maintain clear audit trails: who did what, when, and based on which data.
- Define roles and responsibilities, including who owns approvals, exception handling, and regulatory communication.
- Regular performance and control reviews, with internal audit and risk functions involved in assessing partnerships and programs.
- Align with BSA/AML and privacy expectations where services touch customer data.
A Call to Action for CFOs and Audit Committees
The accounting talent shortage is not just a back-office issue, but also a governance concern. With many finance leaders already reporting compliance delays and heightened risk, waiting for the talent pipeline to recover is not a realistic option.
Audit committees and finance leaders should consider putting their focus on these critical steps:
- Assess internal controls for staffing-related gaps
- Watch for early signs of control or reporting strain
- Invest in automation to reduce manual dependencies
- Line up external accounting support that can be deployed quickly
Protecting financial integrity now requires a more proactive, flexible approach. While the talent shortage is unlikely to ease soon, institutions that adapt by supplementing teams and modernizing workflows can reduce risk and build longer-term resilience.
Building a More Sustainable Path Forward
The accounting industry is starting to respond to the pipeline problem. One of the long-standing requirements for obtaining a CPA license was completing 150 credit-hours of course work. The time and expense required to meet that criteria were turning away prospective candidates.
In response, a new 120-hour licensure requirement and related changes have now been adopted by 43 states to help lure more candidates. Rising salaries are another inducement.
For CFIs and their small business customers, the practical takeaway is clear: they cannot simply wait for the pipeline to recover. By pairing near-term tactics, such as targeted outsourcing, automation and better use of existing staff, with a longer-term focus on talent development, CFIs can navigate today’s shortage while building a finance function that is more resilient for the next cycle.
