US Accounting Talent Shortage: How CPA Firms Are Solving Capacity Gaps

December 24, 2025

The shortage of accountants in the US is not a short-term hiring disruption but a structural, long-term challenge that demands decisive action from CPA firms seeking sustainable growth. Converging forces drive the current accountant shortage: a shrinking pipeline of accounting graduates, accelerated retirements across the profession, and declining interest among younger professionals, many of whom are redirecting their careers toward finance, technology, or management roles.

Firms that attempt to solve this capacity constraint through hiring alone are increasingly finding themselves constrained by cost, availability, and time. In contrast, those that address capacity structurally are better positioned to scale, protect margins, and maintain service quality.

The AICPA’s 2023 Trends Report highlights the depth of the issue, noting a 7.8% decline in accounting bachelor’s degrees and a 6.4% decline in master’s degrees awarded between 2021 and 2022 (Source: CPA Journal).

How Deep is the CPA Shortage in the US?

The CPA talent shortage in the US is not just rhetoric – it is supported by clear workforce data. The AICPA estimates that nearly 75% of the current CPA workforce is expected to retire within the next 15 years, significantly shrinking the available talent pool. At the same time, the number of new accounting professionals entering the market continues to decline, creating a widening gap between supply and demand, exacerbating the shortage of accountants.

Compounding this issue, the U.S. Bureau of Labor Statistics projects a 7% increase in demand for accountants and auditors between 2020 and 2030, driven by regulatory complexity, business growth, and rising compliance requirements. What it means for CPA firms is this – you cannot recruit your way out of this capacity constraint – you have to enforce structural workforce solutions to remain competitive.

How Deep is the CPA Shortage in the US?

Traditional hiring is proving increasingly ineffective for addressing the CPA shortage. Recruiting and onboarding an experienced CPA typically takes 90–120 days, often with no guarantee of long-term retention. In a market where demand continues to outpace supply, firms are forced into aggressive compensation bidding, driving up costs and compressing margins. Robert Half reports that 62% of finance and accounting leaders struggle to hire and retain qualified professionals, underscoring the structural nature of the problem.

Compounding this is sustained burnout across the profession, driven by repetitive compliance work, long hours, and deadline pressure, which accelerates attrition and further weakens internal capacity. Together, these structural constraints make it increasingly difficult for firms to hire their way out of the accounting staffing crisis, particularly at scale.

The Business Impact of the Shortage of Accountants on CPA Firms

Capacity gaps represent a direct risk to firm performance. Stretched teams increase missed deadlines and compliance exposure, while partners are pulled into manager-level work, eroding leverage. Margins suffer as realization declines and non-billable time rises. SHRM estimates turnover costs at 50–200% of annual salary, and AICPA research consistently links missed deadlines to client dissatisfaction. Most critically, many firms are forced to delay or turn away new clients despite strong demand – creating a structural cap on growth.

Talent gaps are no longer a temporary staffing issue – they are a leadership-level risk that impacts compliance, profitability, and growth. Firms that fail to address them proactively will find themselves constrained precisely when the market is demanding more.

How Leading CPA Firms Are Rethinking Capacity

Forward-looking CPA firms are no longer treating the accountant shortage as a hiring problem; they’re treating it as a capacity design challenge. Three structural shifts are emerging across high-performing firms:

Work redistribution: Clear separation between preparation, processing, and review work ensures scarce senior talent is deployed where judgment and client value matter most.
Process standardization: Firms are reducing dependency on individual expertise by standardizing workflows, checklists, and documentation, making delivery repeatable and scalable.
Global delivery models: Rules-based, high-volume work is increasingly handled through offshore or hybrid teams, creating resilience during peak periods.

This shift is already visible in the data. The AICPA’s 2023 MAP Survey shows that over 55% of firms now outsource some portion of their work, with adoption highest among mid-sized and Top 500 firms.

Outsourcing as a Strategic Response to the CPA Talent Shortage

Among leading firms, outsourcing has evolved from a tactical fix into a strategic capacity hedge. When implemented correctly, it delivers measurable outcomes:

Protection of partner and manager time, freeing leaders for advisory, growth, and client relationships.
Stabilized delivery during peak seasons, without permanent headcount risk
Faster turnaround times and improved review quality through dedicated preparation layers

Firms using outsourcing and extended delivery models consistently report higher realization rates and more predictable margins (AICPA MAP Survey), while global delivery insights from Deloitte point to material reductions in cycle times when offshore capacity is integrated effectively. (Source: Deloitte Crunch Time Series Finance 2025 Revisited)

For firms planning long-term growth, outsourcing is no longer optional; it is foundational.

What a Sustainable Capacity Model Looks Like

Future-ready firms are those that view outsourcing as a strategic tool rather than a quick cost-saving measure. In an environment defined by persistent talent shortages and rising client expectations, a sustainable capacity model is built for resilience, scalability, and control; not short-term relief.

At its core, this model deliberately separates high-value judgment from repeatable execution:

Your core US-based team remains focused on review, advisory work, complex judgment, and client relationships, where regulatory accountability and strategic insight matter most.
An offshore extended delivery team, acting as an extension of your own team, supports preparation, processing, reconciliations, and standardized workflows, operating within clearly defined controls and review protocols.
Capacity flexes with demand, allowing firms to scale output during peak periods without permanently inflating payroll or compromising delivery standards.

This structure protects partner time, reduces operational strain during compliance peaks, and creates predictable throughput across the year. Firms that adopt this model are not simply filling gaps – they are future-proofing their operating model for sustained growth.

Way Forward: CPA Firms That Solve Capacity Win the Next Decade

The data makes one thing clear: the accounting staffing crisis is not a short-term blip – it is a structural reality. Firms that respond by rethinking their operating model, rather than simply recruiting harder, will be the ones that scale faster and protect margins. In a market where demand consistently outpaces supply, capacity is no longer an HR challenge; it is a leadership decision that directly shapes growth, profitability, and client experience.

Want to know how Befree helps you solve the capacity crisis? Talk to us now.