Across industries, companies are finding that the Accounting talent shortage is indeed very real. This is especially true for early-career managers and high-potential senior-level talent ready to step into leadership roles.
The bad news: This isn’t a temporary hiring slowdown or a seasonal challenge. It’s a structural talent shortage years in the making. In this blog post, we break down six key forces fueling the Accounting talent gap and share how partnering with a specialized staffing firm like Sherpa can help you stay ahead.

A Shrinking Talent Pipeline

The number of students pursuing accounting degrees has steadily declined in recent years.  According to the American Institute of Certified Public Accountants, both accounting enrollments and CPA exam candidates have trended downward. A recent Accounting Today article noted that between 2016 and 2020, the number of accounting graduates dropped by 17% and the number of CPA exam candidates dopped by 27% over the past decade. Reasons for these declines include students pursuing other business fields with higher paychecks (like Finance and Data Analytics) and rising education costs. Additionally, the CPA certification process itself is potential deterrent – with the 150-hour certification requirement continuing to be an additional barrier to entry for many.

The result: Fewer entry-level accountants entering the workforce today means fewer experienced professionals available tomorrow.  According to Sherpa’s Tim Carlson, “the pipeline isn’t just shrinking – it’s changing in ways employers can’t ignore. Declining enrollments and a steep drop in CPA candidates signal a long-term supply issue. But just as critical is a quieter trend: many early-career professionals who developed in remote or hybrid environments are entering the workforce with less confidence in applying their skillsets in real-world settings. Without consistent in-person mentorship and exposure, technical capability doesn’t always translate to professional conviction, further tightening an already constrained talent market.

Burnout in Public Accounting

Public accounting has long been the primary training ground for future finance leaders. But increasingly, professionals are leaving before reaching higher levels due to:

• Long hours and demanding schedules
• Work-life balance concerns
• Increased pressure during audit and tax cycles

We talk to accounting professionals every day and burnout is often the first reason many are looking to leave. Increasingly, the accounting talent shortage is due in part to professionals exiting for corporate roles earlier in search of a healthier work/life balance.

The result: The traditional “farm system” for developing Accounting & Finance leaders is no longer producing enough mid-level talent.

The “Missing Middle”

Hiring slowdowns during and after the 2008 financial crisis created a ripple effect still being felt today. Post recession, many professionals went into accounting thinking it “recession proof”, flooding the market with talent and creating a temporary surplus that held salaries down – which ultimate led to an Accounting exodus.  Then came the pandemic and the resulting “Great Resignation” – compounding the accounting talent shortage. Fewer entry-level hires during these periods means fewer professionals now in the critical 5–10 year experience range – the exact talent pool companies rely on for manager-level roles.

The result: A noticeable gap in experienced talent that is ready to manage and lead effectively.

Increased Demand for Strategic Skillsets

Today’s Accounting professionals are expected to do more than close the books. Employers are looking for talent who can:

• Partner with leadership
• Provide financial insights and forecasting
• Support strategic decision-making
• Leverage data and technology

This evolution has raised the bar for what qualifies someone as “manager-ready.”

The result: Even when candidates are available, fewer meet the expanded expectations of modern finance roles.  Case in point from Sherpa’s Liz Emanuel: “I’m working with a candidate who’s feeling stuck in their job search. They’re looking to take that next step up to provide insights that guide actual decisions, not just crunch numbers – but they are hitting a wall because leaders want someone who already has high-level experience.  Client expectations have shifted.  “Manager-level” roles now require professionals to be strategic business partners, people leaders, and decision-makers, not just overseeing the close. Companies are making critical decisions through a finance lens, so the most in-demand candidates must guide strategy, translate data into actionable insights, and mentor lean teams effectively at this level.  This evolution is exciting for professionals influencing business outcomes, but it raises the bar for talent.  Many of these roles are net-new, and with sector unemployment already at historically low levels (1–1.5% in Charlotte), finding candidates who “check all the boxes” is challenging.”

Faster Promotions, Less Experience

To combat talent shortages, many organizations have accelerated promotions. While this helps fill immediate gaps, it often leads to:

• Managers with limited leadership experience
• Skill gaps at the supervisory level
• Increased pressure on teams that are already running lean

The result: Titles are advancing faster than true readiness, further tightening the pool of fully capable managers. We discussed this at length in a recent blog post.

Retention and Competition Challenges

The final reason isn’t so much about supply as it is accessibility. In a nutshell, “cream of the crop” Accounting & Finance talent is in high demand and they know it. A recent article by IACEW points out that those with strong Data Analytics, AI integration and Business Partnering skills are even more in-demand.  Candidates with these
Candidates are:

• Receiving multiple offers
• Prioritizing flexibility and culture
• More open to changing roles for better opportunities

The result: Even when companies find strong candidates, hiring them is tough and keeping them is an ongoing challenge. We’re consistently telling our clients today not to drag their feet on hiring proven performers. There’s nothing worse than losing a game-changing candidate because your hiring process was too long or your value proposition wasn’t strong enough.

What To Do About It

In a market this competitive, traditional hiring methods just aren’t cutting it. That’s where a specialized staffing partner like Sherpa can make a measurable difference.  Here are five main advantages such a partnership brings:

Access to Passive Talent

The best candidates generally aren’t actively engaged in job searching, but they are open to the right opportunity when it is presented to them. We maintain relationships with high-performing professionals who know others in their orbit. We’re also keenly aware of what’s going on in the marketplace. Nine times out of 10, when we see a hiring need arise, we already know someone who fits the bill and matches the culture.

Speed to Market

We said it earlier. A slow process will cost you good candidates. In-demand candidates move quickly. We help you:
• Reduce time-to-fill
• Streamline screening and vetting
• Get in front of top talent before competitors do

Market Intelligence

A strong partner provides real-time insight into:
• Compensation trends
• Candidate expectations
• Hiring market conditions

A good staffing partner will help you stay competitive and informed – and they’ll be honest. If your salary or benefits (or your entire EVP) aren’t up to par with the level of candidate you’re looking to hire, they will provide guidance on what you should be offering to beat your competition.

Flexible Hiring Solutions

In a tight labor market with economic uncertainties, this is huge. We work together to help you establish optimum staffing levels, which could mean:
• Contract support during peak periods
• Contract-to-hire to evaluate organizational and role fit
• Direct hire for long-term leadership

In a nutshell, we give you flexibility to adapt to an evolving market.

Better Candidate Experience

From initial outreach to offer negotiation, a staffing partner ensures a professional, engaging experience that reflects well on your brand. We aren’t in this to fill one job with you and move on. Transactional staffing doesn’t really benefit either of us. Our goal is to be viewed as valuable partner in your overall talent strategy – that’s the space where we can do our best work.

Let’s face it – the Accounting talent shortage isn’t going away anytime soon. It’s the result of long-term shifts in education, workforce dynamics, and evolving job expectations. But adopting a proactive, strategic approach to hiring and leverage the right partnerships can help your company compete and win.