Bookkeeper Shortage

The Coming Shortage in Bookkeeping and Accounting Talent

What Small Business Owners Need to Know

A storm is brewing in the world of bookkeeping and accounting, and it’s one that could leave many small businesses scrambling…

As a small business owner, you wear many hats. You’re the visionary, the leader, and sometimes even the janitor. But one role you can’t afford to neglect is that of financial overseer. Your books are the heartbeat of your business. They tell you where you’ve been, where you are, and where you’re going. But have you ever stopped to think about who will keep that heartbeat steady in the coming years?

The good news? You can prepare for it and we’re here to help you do just that.

You might have heard whispers about AI and automation taking over bookkeeping tasks, and maybe you’ve wondered if that means you won’t need a human touch anymore.

While technology is transforming the industry, it’s not a replacement for the expertise and insight that a skilled professional brings. The real challenge ahead isn’t just about technology; it’s about a growing shortage of talented bookkeepers and accountants who can use that technology wisely while providing the strategic guidance your business needs.

Let’s dive into what’s happening, why it matters to you, and how small businesses can stay ahead of the curve.

The Current State of the Workforce: Accountants and Bookkeepers Leaving the Industry

Over the past few years, the bookkeeping and accounting profession has seen a significant exodus of talent.

Between 2019 and 2022, more than 300,000 accountants and auditors left the field. To put that in perspective, the number of candidates taking the CPA exam dropped by 33% from 2016 to 2021. That’s a staggering decline, and it’s not just a blip; it’s a trend.

So, why are so many professionals leaving? There are a few key reasons:

  • Retirements: A large portion of the workforce is reaching retirement age. In fact, 75% of CPAs were eligible to retire in 2020, and many have already hung up their hats since then.
  • Career Shifts: Some are moving to less demanding or higher-paying fields, seeking better work-life balance or more exciting opportunities.
  • Burnout: The stress of tight deadlines, busy seasons, and the pressure to stay compliant has pushed many to seek less taxing careers.

Imagine trying to find a skilled bookkeeper for your business, only to realize that many have retired or moved on to less stressful jobs. We’re past hypothetical; it’s the reality we’re facing today.

Projections for the Next Five Years: A Widening Talent Gap

Looking ahead, the situation isn’t improving. Three factors are creating this storm: Increased need from businesses, increases in retirements and professionals exiting the field, and fewer people entering the career.

In 2024 Personiv surveyed CFOs across 20 industries. 83% of them stated that there’s an accounting talent shortage, and 10% agreed it’s getting worse. The Bureau of Labor Statistics data reinforces this theme forecasting a 6% growth in accounting and auditing job openings through 2033.

Simply put, according to the U.S. Bureau of Labor Statistics a decade from now, there will be fewer people employed as accountants and bookkeepers. 

Paradoxically, there will still be around 170,200 job openings each year due to retirements and career changes. Demand for talent will remain high, but the supply will keep shrinking.

What does this mean for your small business? Simply put, it could become much harder to find and retain qualified professionals to manage your books. This talent gap could lead to:

  • Delays in financial reporting, making it harder to make timely decisions.
  • Increased risk of compliance issues resulting in penalties or missed opportunities.
  • Limited access to expert guidance when you need it most—like during tax season or when planning for growth.

This isn’t just a numbers game. It’s about the real impact on your business’s ability to stay on top of its finances. And while AI and automation can help with some tasks, they can’t replace the critical thinking, intuition, and personalized advice a human expert can provide.

College Enrollments and the Future Pipeline: Why Young Adults Are Shunning the Profession

You might be thinking, “Surely, new talent is entering the field to fill the gap.” Unfortunately, that’s not the case…

College enrollments in accounting programs have been declining for a while. Between 2016 and 2020, when the frontside of Gen Z were graduating from college, the number of graduates earning accounting degrees had fallen by 17%. By 2022, the number of accounting graduates dropped another 8%. The number of students completing their master’s degrees and taking the CPA exam is following a similar multi-year downtrend.

Some universities, like James Madison University, have seen accounting majors plummet by 34% in just four years.

There’s also an “enrollment cliff” looming in 2025, driven by lower birth rates, which will shrink the pool of potential students even further. But why are young adults avoiding the profession? Here are a few reasons:

  • Educational Barriers: The 150-hour CPA requirement adds extra time and cost, making it less appealing compared to other careers.
  • State-specific Barriers: As an example, Arizona requires 2,500 hours of work supervised by a CPA before taking the CPA exam. All while there are fewer CPAs to supervise the work.
  • Perception: Let’s face it, accounting isn’t seen as the most exciting or impactful field. Many young adults are drawn to tech, creative industries, or roles that seem more dynamic.
  • Compensation: Starting salaries in accounting lag behind those in other sectors, making it harder to attract top talent.

This brings us to an important point: while AI and automation are transforming the industry, they aren’t a silver bullet.

Yes, technology can handle routine tasks like data entry or reconciliations, but it can’t replace human intuition, especially when it comes to understanding your unique business needs, spotting opportunities, or navigating complex financial decisions.

The shortage of skilled professionals who can leverage technology effectively is what will truly impact your business.

The Accounting Talent Shortage Isn’t Just A Small Business Problem

A shortage of accountants is making it difficult for many U.S. Cities to report their financials in a timely manner…

In March 2023, S&P Global Ratings placed 149 municipalities on a negative credit watch because of delays in receiving their 2021 financial statements. By April 2023, S&P completely withdrew ratings for 64 of those cities who still hadn’t submitted their reports.

This year, in March 2025, S&P placed 186 issuers (local government, public utilities, and transportation departments) on Credit Watch with pending negative consequences for not receiving their fiscal 2022 financial statements.

U.S. Cities cite the availability of talent as their number one reason for missing reporting deadlines. 

Steps Small Business Owners Can Take to Prepare for the Shortage

So, what can you do to protect your business from this looming talent shortage? The key is to act now and build a relationship with a bookkeeping company that not only embraces technology but also offers the human expertise you need. Here’s how:

  • Partner with a Tech-Savvy Bookkeeping Company: Look for a firm that uses automation and AI to streamline routine tasks like data entry, reconciliations, and reporting. This reduces reliance on a large staff while ensuring accuracy and efficiency. Know this: technology is a tool, not a replacement. The best companies use it to free up their human experts to focus on what really matters: verifying the data entry was correct and then providing good strategic advice and personalized support.
  • Tap Into Advanced Services Like Business Consulting: Don’t settle for a bookkeeping service that only keeps your books in order. Choose one that goes beyond the basics to offer business consulting. This means you’ll have access to experts who can help with financial planning, growth strategies, and navigating challenges, especially during a talent crunch. At The Numbers Advisors, we pride ourselves on being that partner for our clients.
  • Act Now for Future Security: The talent shortage is already here, and it’s only going to intensify. By securing a reliable bookkeeping partner now, you’ll be ahead of the curve. Look for a company that prioritizes technology adoption and has a strong focus on retaining skilled staff. That way, you can rest easy knowing your business’s financial health is in good hands.

Conclusion: Turning a Challenge into an Opportunity

The talent shortage in bookkeeping and accounting is a pressing issue, but it doesn’t have to be a crisis for your business. By understanding the challenges and taking proactive steps, you can turn this into an opportunity to strengthen your financial foundation.

At The Numbers Advisors, we’re committed to helping small businesses thrive, even in uncertain times. We combine the best of technology, automation and AI, with the irreplaceable value of human expertise and intuition to deliver bookkeeping and business consulting services that go beyond the numbers. You don’t have to face the talent shortage alone. Let us be your trusted partner in navigating the road ahead.