Imagine this scenario: Laura owns a thriving coffee shop in Melbourne.
It’s almost tax time, and her accountant has retired. She’ll just find a new one; no big deal, right?
After weeks of searching, Laura can’t find a replacement accountant.
Deadlines are looming, and Laura is feeling understandably overwhelmed.
This story isn’t unique.
Unfortunately, many Australian businesses are feeling the effects of the accountant shortage.
Recent figures show that less than 67% of vacant accounting positions are being filled, including 88% of taxation accounting positions and 75% of general accounting positions.
While that sounds bleak, please don’t panic; we’re here to help!
We’ve put together this blog as your survival guide to the accountant shortage, with practical solutions to help your business adapt and thrive.
Australia’s Missing Accountants: Understanding the Causes
What’s causing the accountant shortage in Australia?
- Workload and stress: Continuous high workloads and pressure, especially during peak periods like tax season, can lead to burnout for accountants.
- Education and training gaps: Universities and training programs may not be fully aligning their curriculums with the practical needs of today’s accounting industry. This leaves new graduates unprepared for the realities of the job, impacting their effectiveness and long-term career interest.
- Changing skill demands: The accounting world is rapidly evolving with automation and new technologies. Some accountants may not be upskilling quickly enough, making them feel less competitive or even obsolete in the job market.
- Mismatch in replacement rates: As older accountants retire, there’s a noticeable mismatch in the number of new graduates entering the field, perhaps due to misconceptions about the profession amongst younger people.
The Impact on Businesses and the Economy
While all businesses can be affected by the accountant shortage, small businesses are particularly vulnerable because they tend to lack the resources to a) afford the higher rates charged by fewer available professionals and b) attract and retain top accounting talent.
In what ways does the accountant shortage in Australia impact businesses?
- Delayed financial reporting: Delays with profit and loss statements, balance sheets, cash flow statements, and tax returns can affect regulatory compliance, decision-making, and operations.
- Compliance issues: Business owners may lack the time and knowledge to ensure compliance with tax laws and regulations, leading to mistakes and potential penalties and legal issues.
- Reduced tax revenue: Failure to claim all eligible deductions and credits can result in unnecessarily high tax payments.
- Inefficient financial management: Limited accounting support can hinder a business’s ability to manage cash flow, budget, and plan for investments, impacting overall financial health.
- Strategic planning challenges: Accountants play a key role in strategic planning by providing insights based on financial data. Without their expertise, businesses might miss opportunities for growth or cost-saving.
Solutions for Businesses Facing the Accounting Industry’s Skill Shortages in Australia
Invest in Technology
Advanced accounting and bookkeeping software and automation tools will automate routine financial tasks for your business, such as data entry, calculations, and basic report generation.
Streamlining these processes reduces the workload on your existing staff and means your business is less reliant on a large number of accountants.
Despite these technological advancements, however, the need for accountants’ expert judgement remains crucial.
While software and automation can process and organise data, they cannot interpret nuanced financial information and provide insights beyond the numbers, such as assessing financial health, advising on tax implications, and planning for future growth.
Develop Internal Talent
Offering training and development opportunities to existing staff can help your business cultivate its own accounting experts.
Consider
- Certification support: Financially support employees in obtaining certifications such as CPA (Certified Public Accountant) or CMA (Certified Management Accountant).
- Continuous professional development: Implement internal training programs that focus on the latest industry trends, new accounting standards, and emerging technologies like blockchain or AI.
- Mentorship programs: Pair less experienced accounting staff with seasoned professionals within your organisation to help them gain valuable practical knowledge and hands-on experience.
- Workshops and seminars: Regularly host or send employees to workshops and seminars led by industry experts.
Offer Flexible Work Arrangements
Offering remote work options and flexible schedules, like job sharing, can attract more candidates for internal accounting positions and help retain current employees by meeting their preferences for work-life balance.
Outsource Accounting Functions
You can outsource your business’s accounting tasks to external firms or freelance accountants rather than employing a costly in-house team.
This option will reduce your overheads and grant you access to specialised expertise from accountants who can manage the accounting workload during peak times or fill gaps in expertise within your company.
The Future of Accounting in Australia: Adaptation and Opportunity
To survive and thrive in Australia’s changing business landscape, adapting and taking advantage of certain opportunities is a must.
This is where virtual accounting comes in.
Here at GeekBooks, we’ve mastered the art of virtual accounting.
With over 50 years of combined accounting, bookkeeping, and taxation expertise, you can rest assured that your business is in the best hands.
Teaming up with virtual qualified accountants like us offers several benefits, especially given the accountant shortage in Australia.
- Access to expertise: Tap into our broad pool of accounting talent without geographical limitations.
- Cost efficiency: Often more cost-effective than hiring full-time, in-house staff, reducing overhead costs like office space and benefits.
- Scalability: Allows your business to scale accounting services up or down based on current needs, providing flexibility during peak periods or downturns.
- Improved focus: Frees up internal resources so you and your staff can focus on core activities and growth.
- Technology integration: We use the latest accounting technologies, offering your business a chance to modernise its accounting practices without significant investment.
Team Up With GeekBooks for Virtual Accounting You Can Count On
The experienced virtual accounting and bookkeeping team at GeekBooks offers tailored
- Payroll services
- Accounts receivable and debtor management
- Invoicing services
- BAS preparation
- Superannuation accounting services
With the accountant shortage in Australia, there’s no time to waste in securing a top-notch, qualified accountant for your business.
So contact us today by completing this online booking form or calling 02 9158 3591.