Over 90% of firms say recruitment crisis stunting growth, Advancetrack finds

Over 90% of accountancy firms have said that recruitment issues are holding back their growth, according to data from Advancetrack.

A further 74% said they’re being directly constrained from taking on more clients or billing more hours because they simply cannot find the talent to deliver the work.

Data also shows that 30% of firms now report more people approaching retirement age than joining the profession.

Furthermore, data shows that 61% of firms are now outsourcing work overseas to expand their resource base, and a further 33% are offshoring.

This is being supported by wider strategic shifts with 44% reporting rising salary pressures, while nearly half are investing in tech upgrades (38%) and staff development (42%) to future-proof their business.

Overall, 48% of respondents said the talent shortage is moderately or significantly worse than three years ago.

Vipul Sheth, MD of Advancetrack, said: “This year’s Accounting Talent Index confirms what many in the profession have feared – that the accounting talent crisis is not only continuing, but intensifying.

“Growth is no longer being held back by ambition or opportunity, but by a lack of skilled people. It’s why we’re seeing record numbers of firms turning to outsourcing, offshoring, and tech investment – not just as a cost-saving measure, but as the only realistic route to sustainable growth in the current climate. The model has shifted, and so must the mindset.”

He added: “Firms can’t simply hire their way out of this problem anymore. We’re seeing a step-change where leaders must rethink how they deliver services – not just who delivers them. That means being smarter about structure, tech and global resourcing. Those who move early and adapt fastest will be the ones that thrive.”