How the Accountantancy Crisis is Affecting Businesses

Written By Craig Skilton

The accounting profession is in the midst of a critical shortage. With an aging workforce, high turnover, and fewer new professionals entering the field, businesses—particularly small and medium-sized enterprises (SMEs)—are facing operational challenges. This shortage, combined with increasing regulatory complexity, has left many organizations struggling to keep up with their accounting needs. However, AI-driven automation solutions, such as Airflo, offer a way to bridge this gap, helping companies navigate the crisis while improving efficiency and reducing costs.

Causes of the Accountant Shortage

  • Aging Workforce: According to a study by the American Institute of CPAs (AICPA), more than 75% of Certified Public Accountants (CPAs) are nearing retirement. This mass exodus is leaving a significant talent gap that is difficult to fill.

  • Decline in New Entrants: Fewer students are pursuing accounting degrees due to the perception of the profession as rigid and lacking in dynamism. Other careers in technology and finance seem more attractive, contributing to the decline in new accountants.

  • Increased Regulatory Complexity: The complexity of financial regulations continues to grow, raising the barrier to entry for new accountants and causing burnout among existing professionals.

  • Workload and Stress: Accountants are overburdened with increased workloads, especially during tax seasons and quarterly reporting cycles, leading to high turnover and further staffing shortages.

Impact on Businesses

The accountant shortage has significant ramifications for businesses across all industries, particularly SMEs.

  • Increased Costs: As competition for qualified accountants grows, salaries are rising, straining business budgets. This is especially tough for companies with limited resources.

  • Delayed Financial Reporting: With fewer accountants available, many businesses face delays in closing their books. This impacts decision-making, access to financing, and compliance with regulatory deadlines.

  • Reduced Business Growth: Without timely and accurate financial data, businesses struggle to make informed decisions about expansion and investment, limiting growth opportunities.

  • Decreased Focus on Strategic Tasks: Accounting teams are consumed by routine tasks such as data entry and reconciliations, leaving little room for strategic activities like financial planning and advising on corporate strategy.

Airflo’s Solution: Automation and AI-Driven Accounting

By harnessing the power of AI and other advanced technologies, Airflo provides a comprehensive solution to the accountant shortage through our RapidIDP and Digital Employees. These innovations allow businesses to automate labor-intensive tasks, significantly reducing reliance on manual processes, while empowering accounting teams to focus on higher-value, strategic initiatives.

  • Data Extraction: Airflo’s RapidIDP (Rapid Intelligent Document Processing) technology automates the extraction of data from various financial documents, such as invoices, receipts, excel files, and dozens of other file formats. This significantly reduces manual data entry, ensures compliance, and improves the accuracy and speed of financial reporting​.

  • Automating Routine Tasks: Airflo’s Digital Employees can automate both routine and more complex accounting tasks. These AI-powered agents learn from workflows and adapt to changes over time, almost eliminating the need for human intervention, but always having a human in the loop when necessary. As a result, accounting teams can focus on complex financial analysis, forecasting, and strategic planning​. 

  • Scalability: Airflo enables businesses to scale their accounting operations without the need for additional hires. Our RapidIDP technology efficiently processes large volumes of structured, semi-structured, and unstructured documents, while our Digital Employees operate continuously, 24/7/365, without breaks. This seamless, round-the-clock functionality makes Airflo an ideal solution for SMEs seeking to grow efficiently, even in the face of a skilled accountant shortage.

  • Cost Efficiency: While the initial investment in Airflo may seem significant, the long-term cost savings are substantial. By reducing the need for additional hires and improving operational efficiency, businesses can process more with fewer resources, helping to control rising overhead costs associated with the accountant shortage​.

  • Easy Integration: Airflo's systems seamlessly integrate with your existing data sources, such as ERP and accounting systems. This interoperability allows businesses to leverage their existing technology while enhancing efficiency and accuracy across financial operations.

Example Processes Airflo Automates

  • Accounts Payable (AP): Automates the matching of invoices with purchase orders and receipts, ensuring accuracy and reducing processing time.

  • Accounts Receivable (AR): Simplifies the creation, distribution, and tracking of invoices, improving cash flow and minimizing delays in payment.

  • Reconciliations: Automates bank and account reconciliations to ensure financial records are accurate and up to date, reducing the risk of errors.

  • Expense Management: Streamlines the process of capturing and processing employee expenses, ensuring compliance with company policies and expediting reimbursements.

Conclusion

The accountant shortage poses significant risks to businesses, from increased costs to delayed financial reporting. However, AI-powered solutions like Airflo offer a viable path forward. By automating routine to complex accounting tasks, Airflo allows businesses to scale efficiently, reduce operational costs, and stay compliant. In an increasingly competitive business landscape, adopting automation technologies is not just an option but a necessity for companies looking to thrive.

Craig Skilton