Accounting Shortage is Squeezing Today’s CFOs

The numbers still have to add up—but with accounting shortage, mounting investor expectations, and a burned-out finance team, Chief Financial Officers (CFO) are feeling the squeeze from every direction.

With dwindling CPA pipelines, today’s finance leaders are juggling hiring duties, firefighting operational gaps, and scrambling to adopt new tech that their teams resist. The accounting shortage isn’t just a staffing issue—it’s a strategic crisis that’s reshaping the CFO’s role entirely.

Why the Accounting Talent Crisis Matters Now

The profession faces a significant decline in new entrants. Factors such as the rigorous 150-hour CPA requirement, perceptions of limited work-life balance, and evolving career interests contribute to this trend. The Illinois CPA Society highlights these concerns in its report on the CPA pipeline decline.

The shortage of qualified accountants is not just a staffing issue; it's impacting the profession's ability to meet organizational demands. With fewer CPAs, firms struggle to maintain audit quality, financial reporting accuracy, and compliance standards. This decline also hampers the profession's capacity to mentor and develop future talent.

The talent gap threatens the sustainability of financial operations. Organizations may face increased risks of financial misstatements, delayed reporting, and strategic misalignments. Long-term, this could erode investor confidence and affect capital markets.

What CFOs Think About the Accounting Shortage

Increased Workload and Burnout Risks

CFOs report that the shortage has led to increased workloads for existing staff, heightening the risk of burnout. The 1Q 2025 CFO Signals Survey by Deloitte indicates that 44% of CFOs are concerned about the increased workload on their teams.

Additionally, the survey highlights that CFOs are facing challenges related to employee engagement and the availability of skilled talent.

• 50% of CFOs identified employee engagement as a significant workforce challenge.

• 45% of CFOs pointed to a lack of skilled talent as a major concern.

• In response to hiring challenges, CFOs are increasingly involved in recruitment and talent management. With these issues, finance chiefs are effectively acting as chief human resources officers for their departments.

• Only 15% of CFOs reported not experiencing a shortage of accountants or other finance talent.

• 42% of CFOs are concerned about a loss of credibility with institutional and private investors.

• Stakeholders demand timely and accurate financial information. The talent shortage challenges CFOs' ability to meet these expectations, potentially undermining stakeholder trust and organizational credibility.

• 41% of CFOs fear an erosion of board confidence in the finance function.

These concerns underscore the critical nature of the talent shortage and its impact on organizational performance and stakeholder trust.

How CFOs Are Responding to the Shortage

To address these challenges, CFOs are exploring various strategies. However, the effectiveness of these measures remains to be seen, as the demand for skilled finance professionals continues to outpace supply.

Reassigning Talent from Other Departments

To fill gaps, CFOs are reallocating employees from other departments into finance roles. While this provides temporary relief, it may not address the need for specialized accounting expertise.

Partnering with Staffing and Outsourcing Firms

Outsourcing has become a prevalent strategy. A survey reveals that 90% of CFOs are outsourcing at least some accounting functions to mitigate the talent shortage.

Hoisting Finance as a Strategic Partner

CFOs are positioning the finance function as a strategic partner within organizations. By focusing on value-added activities and leveraging financial insights, finance teams contribute to broader business objectives.

Turning to Technology for Relief

The Rise of Generative AI in Finance

Generative AI is quickly gaining traction among CFOs as a critical solution to the growing talent shortage in finance. As teams shrink and workloads expand, finance leaders are turning to advanced technologies to fill skill gaps and boost productivity.

According to the abovementioned survey, 79% of CFOs report that they are likely or very likely to implement generative AI within the next 24 months. These tools offer capabilities such as natural language processing, report generation, and data-driven forecasting to help finance teams reduce manual workloads while maintaining accuracy and agility.

Automating Routine Accounting Tasks

Beyond generative AI, CFOs are also embracing automation to handle repetitive and time-consuming processes. Tasks like data entry, account reconciliations, invoice processing, and financial close procedures are increasingly being delegated to automation platforms.

This not only frees up time for finance professionals to concentrate on value-added activities such as financial strategy, forecasting, and stakeholder communication but also improves overall accuracy, reduces the risk of errors, and enhances employee satisfaction by eliminating tedious work.

Overcoming Resistance to Digital Change

While the benefits of automation and AI are clear, implementation remains a challenge. Nearly 48% of CFOs report encountering resistance from finance staff when introducing new technologies. This resistance often stems from fear of job displacement, unfamiliarity with digital tools, or concerns about added complexity.

To overcome these barriers, CFOs are deploying change management strategies—including ongoing employee training, upskilling programs, and clear communication that emphasizes how technology will support, not replace, human roles. Cultivating a culture of innovation and continuous learning is essential to ensuring successful tech adoption within finance departments.

Future-Proofing Finance

1. Redesigning the Finance Operating Model

CFOs are rethinking traditional operating models. Embracing flexible structures and integrating technology can enhance agility and responsiveness.

2. Building a More Resilient Finance Function

Investing in cross-training and developing a versatile workforce strengthens resilience. This approach ensures continuity amid staffing fluctuations.

3. Investing in Upskilling and Retention

Prioritizing employee development and retention is crucial. Offering continuous learning opportunities and clear career paths can attract and retain top talent.

Leading Through the Shortage

Today’s CFOs are no longer just guardians of compliance and financial accuracy—they are increasingly becoming strategic leaders at the helm of organizational transformation. The ongoing accounting and finance talent shortage has transformed the CFO's responsibilities beyond the traditional scope, compelling them to take active roles in talent acquisition, digital innovation, and cross-functional leadership. Many CFOs are now directly involved in recruiting, onboarding, and even reskilling finance professionals, essentially acting as chief human resources officers for finance.

Long-Term Solutions for a Systemic Talent Crisis

Solving the accounting shortage requires more than short-term fixes—it demands systemic, industry-wide change. Long-term solutions must focus on:

• Modernizing Accounting Education – Aligning university curricula with the advancing skill sets required in a tech-driven finance world.

• Promoting the profession earlier – Engaging students at the high school and college levels to improve perceptions of accounting as a dynamic and rewarding career.

• Building Stronger Career Pathways – Offering flexible, accelerated routes to CPA certification and professional growth.

• Industry Collaboration – Encouraging partnerships between firms, professional organizations, and educational institutions to create sustainable talent pipelines.

Without these efforts, the gap between financial responsibilities and available talent will only widen, putting long-term business performance and financial governance at risk. CFOs, as both strategic leaders and talent advocates, are uniquely positioned to lead this transformation, paving the way for a stronger, more resilient finance function in the years ahead.