According to the Bureau of Labor Statistics, the demand for accountants in the United States is expected to grow by 7% from 2020 to 2030, which is faster than the average for all occupations. However, the US is not the only country that needs more accountants.
A report by the International Federation of Accountants (IFAC) found that there is a global shortage of accountants, especially in emerging and developing economies.
The report identified several drivers of this shortage, such as:
- The rapid growth of small and medium-sized enterprises (SMEs), requires accounting services to manage their finances, comply with regulations, and access financing.
- The increasing complexity and diversity of accounting standards, regulations, and reporting requirements, require accountants to have specialized knowledge and skills.
- The rising demand for non-financial information, such as environmental, social, and governance (ESG) reporting, requires accountants to have broader perspectives and analytical abilities.
- The impact of technology has transformed the role of accountants from data collectors and processors to data analysts and advisors, who can provide insights and solutions to business problems.
Growing Demand, Different Strategies
To meet this growing demand for accountants, different countries have adopted different strategies.
Some countries have invested in education and training programs to increase the supply of qualified accountants. For example, Romania has adopted the International Financial Reporting Standards (IFRS) and launched the ACA qualification in 2008 to enhance the skills and competencies of its accountants. Other countries have relied on immigration and outsourcing to fill the gaps in their accounting workforce. For example, Australia has attracted many foreign accountants with its liberal immigration policy and high standard of living.
However, one of the most recent and innovative trends in accounting is offshore hiring. Remote working allows accountants to work from anywhere in the world, as long as they have access to the internet and the necessary tools and software.
The Rise of Offshore Accounting Hiring
This surge in demand is evident in various countries, each facing unique challenges and opportunities that have led to the rise of remote accountants from diverse regions like India, the Philippines, and South America.
Remote working offers many benefits for both employers and employees, such as:
- Access to a larger pool of talent. Employers can hire accountants from different countries and regions, without being limited by geographical boundaries or visa restrictions. Employees can apply for jobs that suit their qualifications and preferences, without being constrained by location or relocation costs.
- Cost savings. Employers can reduce their overhead costs, such as office rent, utilities, equipment, and travel expenses. Employees can save money on commuting, housing, clothing, and food expenses.
- Flexibility. Employers can adjust their staffing levels according to their business needs, such as seasonal fluctuations or project-based work. Employees can choose their working hours and schedules according to their personal needs, such as family responsibilities or time zones.
- Productivity. Employers can improve their efficiency and quality by hiring accountants who have specialized skills and expertise. Employees can improve their performance by working in a comfortable and distraction-free environment.
- Satisfaction. Employers can increase their retention rates by offering accountants more autonomy and empowerment. Employees can increase their happiness and well-being by achieving a better work-life balance.
Competition for the Best Talent: Striving for Excellence
As US firms tap into the global talent pool, they face competition not only from each other but also from companies across various industries that require similar skill sets. This competition has prompted firms to adopt innovative strategies to attract and retain the best accounting talent from remote locations.
To stand out in the race for top talent, firms are focusing on several key aspects:
Compensation and Benefits: Offering competitive salaries, attractive benefits packages, and opportunities for professional growth are crucial in enticing skilled accountants to join remote teams.
Work-Life Balance: Firms that prioritize work-life balance and provide flexible working arrangements are more likely to attract top talent who value both their career and personal well-being.
Tech Infrastructure: Providing state-of-the-art technology tools and systems enables remote accountants to work efficiently and seamlessly collaborate with their onshore counterparts.
Professional Development: Investing in ongoing training and skill enhancement opportunities demonstrates a commitment to the growth and success of remote accountants.
A Globalized Future for Accounting Talent
The growing demand for accountants in different countries has ushered in a new era of global talent acquisition. As US firms seek to fulfill their accounting needs with skilled professionals from India, the Philippines, and South America, competition for the best talent remains fierce. By focusing on factors like compensation, work-life balance, technology, and professional development, firms can position themselves as leaders in attracting and retaining remote accountants.
So, how do you build an offshore team?
Companies are exploring global avenues to find the best accounting talent. If you're venturing into offshore talent hiring, we have a special offer for you.
On September 7th, join us for a conversation with Mark Stovel, CPA, and Agustín Morrone on how to successfully build an accounting or finance team offshore and scale your SMB's operations with South American talent. We'll explore the pros and cons of discovering exceptional accounting expertise outside the US.
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