The accountancy sector is grappling with a severe talent shortage that threatens to impede its growth, according to a new global report released by Advancetrack.  

The 2025 Accounting Talent Index, which surveyed accountancy leaders worldwide, reveals that an overwhelming 94% of respondents believe talent and recruitment challenges will significantly affect their capacity for expansion. 

The survey paints a grim picture of the industry’s future, with nearly 40% of leaders expressing that the recruitment issue will have a “significant” impact.  

Moreover, 74% of firms are currently unable to take on additional clients or increase billable hours due to the scarcity of skilled professionals to handle the workload. 

Notably, 30% of firms are experiencing a demographic shift, with more professionals approaching retirement than those entering the field.  

Compared to three years ago, 48% of respondents perceive the talent shortage to be moderately or significantly worse. 

Advancetrack MD Vipul Sheth said: “This year’s Accounting Talent Index confirms what many in the profession have feared – that the accounting talent crisis is not only continuing, but intensifying.  

“Growth is no longer being held back by ambition or opportunity, but by a lack of skilled people. 

“It’s why we’re seeing record numbers of firms turning to outsourcing, offshoring, and tech investment – not just as a cost-saving measure, but as the only realistic route to sustainable growth in the current climate. The model has shifted, and so must the mindset.” 

In response to these challenges, 61% of firms have turned to outsourcing work overseas to bolster their resources, with an additional 33% engaging in offshoring practices.  

These strategies are part of broader efforts to navigate the talent crunch, which include coping with rising salary pressures (44% of firms) and investing in technological advancements (38%) and staff development (42%) to safeguard their operations. 

The Index’s insights are derived from detailed responses provided by leaders of accountancy firms from the UK, Australia, and other regions. 

Sheth stated: “Firms can’t simply hire their way out of this problem anymore. We’re seeing a step-change where leaders must rethink how they deliver services – not just who delivers them.  

“That means being smarter about structure, tech and global resourcing. Those who move early and adapt fastest will be the ones that thrive.” 

Advancetrack, operating under the trading name of E-Accounting Solutions, is a member firm of the Institute of Chartered Accountants of England and Wales (ICAEW).  

The company specialises in providing a range of services, including financial, accounting, bookkeeping, audit, and taxation, as well as outsourcing and offshoring solutions, catering to accountancy practices and large businesses within the UK.