84% of Chief Financial Officers (CFOs) reported significant talent shortages in 2023, a statistic with implications for teams seeking qualified finance and accounting talent. A closer look at the shortage reveals a trifecta of issues to blame—employee retention, retirements and fewer graduates specializing in accounting. As organizations contend with the scarcity of qualified candidates, strategic project needs, and temporary leaves or long-term vacancies, CFOs should assess how to maintain the strength of their financial organization.

Evaluating the Organizational Strain – A Quantitative and Qualitative Accounting Dilemma

More than 300,000 accountants left the profession between 2019 and 2022. Meanwhile, the number of U.S. accounting graduates dropped 7.4% between 2021 and 2022. Undergraduate students have been motivated by other industries including technology and banking where salaries have risen in recent years and see the 150-hour college credit requirement to become a certified public accountant (CPA) as a sticking point, requiring additional tuition and time. With the demand for finance professionals exceeding the available qualified candidates, finance leaders are not only grappling with a quantitative issue; the shortage also extends to the quality of candidates available who have the right expertise and experience. The increasing complexity around accounting standards and regulatory requirements demands a heightened level of technical acumen and hands-on experience. This is especially important given that the U.S. Securities and Exchange Commission has released regulation tying financial reporting accuracy to executive compensation. CFOs are pressured to not only manage their teams’ workloads given the shortage, but also ensure they have adequate skillsets to handle the complexity.

With the demand for finance professionals exceeding the available qualified candidates, finance leaders are not only grappling with a quantitative issue; the shortage also extends to the quality of candidates available who have the right expertise and experience. The increasing complexity around accounting standards and regulatory requirements demands a heightened level of technical acumen and hands-on experience. This is especially important given that the U.S. Securities and Exchange Commission has released regulation tying financial reporting accuracy to executive compensation. CFOs are pressured to not only manage their teams’ workloads given the shortage, but also ensure they have adequate skillsets to handle the complexity.

Addressing the Problem with Training and Technology

Organizations can focus on developing the talent internally by prioritizing training and professional development to equip their current teams with the skills needed to step into increasingly complex roles. Over 80% of workers emphasize the importance of companies providing training programs to improve their skills as they advance in their careers. Increasing the focus on training within not only engages and enhances the existing team’s skillset, but also will position the organization as more attractive to future talent. In addition to training opportunities, more CFOs are exploring technology to confront the talent shortage head-on. As many as 89% of CFOs are planning to invest in artificial intelligence (AI) as a means to alleviate the talent crisis. Automation and advanced technologies continue to prove helpful to compensate for the scarcity of skilled workers, ensuring productivity and operational efficiency even with a reduced workforce. Tapping into technology can also streamline routine tasks, allowing finance and accounting professionals to focus on higher-value, strategic activities.

Adopting Alternative Staffing Models

Many CFOs have opted to embrace outsourcing and partnerships with specialized firms to supplement in-house expertise for a variety of reasons – lack of qualified candidates, strategic project needs, or coverage for team members who are on temporary leaves. These partnerships not only ensure that essential functions are performed without interruption, but also provide the support needed to pursue strategic objectives.

Organizations may elect to bring in an interim solution to fill a gap while continuing a hiring search or to supplement their teams as they experience periods of heightened intensity, such as a merger or acquisition, an IPO, a first annual audit or the implementation of new systems or software. Often interim resources can supplement the existing team with more experience in certain areas, offering technical proficiency and operational expertise to see teams through to success.

The CFO is now also frequently faced with the need to fill temporary vacancies—including parental leaves—with adequate skills and support while key team members are out. The number of women on parental leave rose 11% in the six months that ended February 2023 from five years earlier, and the number of men taking parental leave tripled during the same period. Compounding this trend, parents are also taking longer leaves. Interim resources can be critical during these weeks or months to cover responsibilities while team members are out.

Today’s environment requires thoughtful workforce planning, especially given the scarcity of talent entering the industry. CFO’s should proactively plan for their needs as they experience unexpected departures or leaves – as well as navigate periods of high growth.

Learn how WM bridged the gap with interim support for a $300 million education software company in need of day-to-day operations and undergoing several strategic projects below.

WM was called to step in for the Tax Senior Manager, who had been with the company for many years, to handle the day-to-day operations of the tax team. The company had significant tax events during the year and was working through several key tax projects with accelerated timelines. During this same period, the company had a growing tax profile that required additional expertise to evaluate state income tax and sales and use tax questions, partnership tax compliance review and several technical projects.

Throughout the interim management engagement, WM worked closely with the company’s controller and assistant controller to keep them abreast with ongoing status updates for communication to senior management, preparing communications for senior management. The team also:

  • Worked directly with the external tax advisors to ensure the key tax projects progressed according to internal deadlines as each tax project was dependent on the completion of another. This included the Section 174 study, R&D credit study, corporate tax returns, E&P distribution analysis and partnership tax returns.  
  • Coordinated efforts between the company, the external tax advisor and separate WM tax colleagues to ensure seamless teaming.
  • Focused on responsiveness and around-the-clock service for the client due to the accelerated tax deadlines and the company’s focus on meeting the K-1 deadlines for early July.

By the end of the interim support engagement, the company had successfully met its critical  deadlines while maintaining a sense of continuity within its accounting function. More specifically, the culmination of the project’s efforts led to the accurate completion of the shareholders’ K-1s, which were of utmost importance that year due to the investor-level tax implications of various events and transactions. The accelerated completion of the tax filings satisfied the company’s stakeholders and positioned them for seamless operations moving forward.

About WilliamsMarston

WilliamsMarston is a leading accounting, tax and valuation advisory firm that delivers the clear, actionable intelligence that businesses need to make confident decisions, create value, and drive successful outcomes. WM advises pre-IPO, public, and private equity-backed companies across a range of industries including healthcare, life sciences, technology and financial services as they navigate rapid growth and transformation. WM is here to provide the capabilities and continuity needed to help your organization succeed—without interruption.