Accounting firms adopt offshoring to combat workforce shortages

Accounting firms are increasingly turning to offshoring and technology to address significant workforce shortages. Research from Chartered Accountants Australia and New Zealand (CA ANZ) indicates a projected shortfall of approximately 17,900 accounting, auditing, and finance professionals by 2035. Current data shows low fill rates for various roles, including general accountants (49%), taxation accountants (55%), and auditors (40% to 49%).

While offshoring adoption is growing, with 56% of participating firms planning to increase use, offshore staff currently account for only 2.6% of total personnel. Experts suggest many firms are using offshoring as a temporary capacity boost rather than redesigning their core workflows. Similarly, while cloud-based office applications and client portals see high adoption rates, deeper integration of practice management and audit systems remains a challenge, as these changes require fundamental shifts in how work is scoped and reviewed.

To mitigate risks, firms are advised to conduct rigorous due diligence before transferring files. This includes ensuring compliance with the Tax Practitioners Board, the Privacy Act, and professional standards regarding supervision and competence, as registered practitioners remain responsible for work performed by outsourced providers.