Accountancy firms turn away work amid staffing crisis, survey finds

Nearly 73% of accountancy firms have admitted to turning away potential clients because they lack the staff to deliver services, according to Advancetrack’s 2026 Accounting Talent Index.

The report, which is based on responses from 500 accountancy firms across global markets including the UK, US, Australia and Canada, found that recruitment challenges have become a direct constraint on business expansion.

Some 45% of respondents believe that the talent shortage has worsened since 2023, while 19% state the situation has deteriorated significantly. 

Capacity constraints are now widespread across the industry, with 69% of firms reporting that their service lines are operating at – or near – full capacity.

The data shows that 71% of firms believe their growth is being slowed by recruitment issues, while 70% identify the shortage as a major barrier.

Despite these pressures, 73% of leaders still expect their businesses to grow over the next 12 months as demand for professional services remains high.

Vipul Sheth, managing director of Advancetrack, said: “Firms are not short of demand – they are short of people. This year’s Accounting Talent Index reinforces just how challenging the environment has become for firms across the profession, and how the talent shortage is starting to put a ceiling on how much they can grow.

“Demand for services remains strong, but many firms are reaching a point where they just do not have the capacity to deliver. As a result, they are being forced to turn work away. Rather than a lack of ambition, our Index shows an urgent lack of available resources. Firms want to expand, but without the right people in place, that growth is becoming increasingly difficult to achieve.”

He added: “This shortage of skills is leading more firms to rethink how they structure their operations, and that involves looking at a combination of technology, outsourcing and new ways of working to help bridge the gap between demand and capacity.”