Offshoring Solutions to Address Australia’s Accountant Shortage

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Australia is experiencing a significant shortage of skilled professionals across multiple industries, with accounting being one of the most critically affected sectors. This accountant shortage in Australia has left businesses struggling to attract and retain talent while managing increasing workloads. Adding to this challenge is the declining appeal of the profession among younger generations.

To address these issues, many companies are turning to offshoring as a viable solution. Offshoring not only provides access to a global pool of talent but also offers cost-efficiency, scalability, and an opportunity to sustain business growth in the face of domestic labor shortages.

In this article, we’ll delve into the rising demand for accountants, the differences between offshoring and outsourcing, the benefits of offshoring, and why now is the time to embrace this strategic approach.

Key Takeaway

Australia’s Accountant Shortage Crisis

Australia faces a critical shortage of accounting professionals due to low graduate numbers, migration challenges, and declining interest in the profession, leaving businesses struggling to fill key roles.

Offshoring vs. Outsourcing

Offshoring provides integrated, tailored support with direct management and alignment to business workflows, while outsourcing focuses on standardized, independent task execution with limited involvement.

Benefits of Offshoring

Offshoring offers significant advantages, including cost savings of up to 70%, access to skilled global talent, scalable operations, increased productivity, and advanced technology integration.

The Urgency to Offshore

With rising recruitment challenges and economic uncertainty, businesses can gain a competitive edge, adapt to market volatility, and future-proof operations by offshoring now.

Strategic Solutions with FastLaneRecruit

FastLaneRecruit offers customized offshoring solutions, helping businesses access Southeast Asia’s talent pool to overcome skill shortages and drive sustainable growth.

Are Accountants in Demand in Australia?

Absolutely. Accountants are among the most in-demand professionals in Australia, and this trend shows no signs of slowing down. With the economy growing and regulatory requirements becoming increasingly complex, businesses across industries are scrambling to fill accounting roles, creating a significant skills gap in the labor market.

A Widening Skills Gap

Shortage of Accountants and Auditors

A survey conducted by Chartered Accountants Australia and New Zealand (CA ANZ) between January and February 2024 revealed significant shortages across 11 accounting, audit, and finance-related occupations. The survey found vacancy fill rates were below 67% for roles such as Taxation Accountant, External Auditor, Accountant (General), Management Accountant, Internal Auditor, and Finance Manager. In total, member firms reported 945 vacant positions nationwide, including 310 for External Auditors and 219 for Taxation Accountants.

Recruitment Challenges

According to CPA Australia, the national labour shortage is ongoing, with almost half of “white-collar” professions, including tax accountants, facing skills shortages in 2023. The Jobs and Skills Australia (JSA) list indicates that 36% of occupations found it difficult to fill positions in 2023, about 5% higher than in 2022. Employers are encouraged to adopt proactive recruitment methods to reach a broader talent pool.

The FastLaneRecruit Australia Salary Guide for 2025 showcases competitive earnings across the accounting profession, driven by high demand. Mid-level roles like Management Accountants earn AUD 110,000 annually, while senior positions such as CFOs command salaries up to AUD 350,000. This trend highlights the critical role of accountants in addressing skill shortages and fostering business growth.

Ongoing Shortages Across Key Roles

The demand spans a variety of accounting specializations, including:

  • Taxation Accountants
  • Management Accountants
  • External and Internal Auditors
  • Finance Managers
  • Payroll Officers
  • Accounts Payable Officers

A joint submission by Chartered Accountants Australia and New Zealand (CA ANZ) and CPA Australia to Jobs and Skills Australia revealed that vacancy fill rates for critical roles like Taxation Accountant, External Auditor, and Finance Manager were below 67%. Additionally, the survey highlighted over 300 unfilled external auditor roles and 219 taxation accountant vacancies across Australia.

The Economic Impact

Accountants play a pivotal role in driving business success and maintaining economic stability. Their responsibilities range from ensuring compliance with tax laws to providing financial insights that shape strategic decisions. The job growth for accountants is projected to increase by 9.2% by 2026, with over 200,000 accountants already contributing their expertise to industries such as professional services, finance, and manufacturing.

However, the persistent shortage of accountants is putting pressure on businesses, leading to:

  • Delays in meeting compliance deadlines.
  • Rising recruitment costs as competition for talent intensifies.
  • Operational inefficiencies due to understaffed accounting departments.

Barriers to Talent Supply

The shortage is further exacerbated by several factors:

  1. Declining Enrollment in Accounting Programs:
    CPA Australia reported that the number of students completing accounting degrees nearly halved over the past decade, with only 2,278 graduates annually as of 2020. Meanwhile, enrollment in banking and finance programs increased by 23%, creating a significant skills imbalance.
  2. Migration Challenges:
    Although skilled migration has traditionally helped fill gaps in the workforce, 80% of skilled accounting migrants struggle to find employment in their field due to barriers such as:
    • Discrimination and unconscious bias.
    • Regulatory hurdles requiring additional qualifications.
    • Lack of industry-specific support for new migrants.
  3. Retention Issues:
    According to Accounting Times, 36% of accountants plan to leave the profession within five years, driven by poor work-life balance, particularly among those aged 25 to 44. Additionally, 56% cite excessive manual tasks as a major issue, highlighting the need for automation to improve retention.

What Is the Difference Between Offshoring and Outsourcing?

While often used interchangeably, offshoring vs outsourcing are distinct business strategies with unique approaches and benefits. Understanding their differences is crucial, especially in industries like accounting, where precision, compliance, and operational control are critical.

Offshoring

Offshoring, such as in accounting, involves partnering with a third-party provider to recruit and manage talent in another country. Offshore employees work exclusively for your business, following your processes, systems, and workflows. This approach ensures a seamless integration of the offshore team into your existing operations.

Key Features of Offshoring:

  • Direct Management: You retain full control over the daily operations, task delegation, and performance of your offshore team, similar to managing in-house staff.
  • Customized Workflow: Offshore employees are trained to adapt to your tools, systems, and methodologies, ensuring consistency with your business processes.
  • Integrated Approach: The offshore team functions as an extension of your local workforce, fostering collaboration and alignment with your company culture and goals.

Outsourcing

Outsourcing delegates specific tasks like accounting or projects to an external provider, who manages the work independently. Unlike offshoring, outsourcing involves minimal involvement from your side in how tasks are completed.

Key Features of Outsourcing:

  • Limited Involvement: The outsourcing provider takes full responsibility for task execution, with little to no input from your side.
  • Standardized Processes: Tasks are performed using the provider’s own systems, tools, and workflows, which may differ from your organization’s standards.
  • Focus on Results: You receive a finished product or service, but with limited control over the quality, processes, and methodologies used.

Choosing the Right Solution

For businesses seeking full control, customization, and alignment with their operations, offshoring provides a more seamless and integrated solution. It ensures that your team—whether local or offshore—works cohesively, maintaining consistency and quality across all business processes.

In contrast, outsourcing may suit businesses with well-defined, standalone tasks or short-term projects where process control and integration are not priorities.

By evaluating your business needs, you can determine whether offshoring or outsourcing is the best fit for achieving your operational and strategic goals.

What Are the Advantages of Offshoring?

Offshoring offers a wealth of benefits that extend beyond cost savings. Here are the key advantages:

1. Significant Cost Savings

Offshoring to Malaysia offers businesses access to skilled professionals at significantly lower labor costs, reducing expenses by up to 70%. With competitive salaries and reduced overheads, companies can maintain high-quality outcomes while reallocating resources toward growth initiatives, making Malaysia an ideal destination for cost-effective offshoring.

2. Access to Skilled Talent

Offshoring opens the door to a global pool of highly qualified professionals. For example:

  • Filipino accountants are trained under International Financial Reporting Standards (IFRS), ensuring compliance with Australian accounting standards.
  • Many offshore professionals hold advanced degrees and certifications, such as CPA qualifications, bringing expertise comparable to local talent.

3. Scalable Operations

Offshoring provides the flexibility to scale your workforce up or down as needed. Whether you require additional resources during peak periods or are looking to expand your business, offshoring providers can quickly adapt to your needs.

4. Enhanced Productivity

With offshore teams handling routine and time-consuming tasks like payroll, bookkeeping, and tax compliance, your local team can focus on strategic activities, driving innovation and growth.

5. Advanced Technology Integration

Offshoring providers often leverage the latest accounting tools, such as Xero, QuickBooks, and MYOB, streamlining processes and delivering actionable insights without the need for additional investment. By hiring a Remote Xero Accountant, businesses can ensure seamless financial management while optimizing costs and accessing expert talent globally.

6. Business Continuity

Offshoring ensures uninterrupted operations by providing access to a stable and dependable workforce. This reduces risks associated with local labor shortages or employee turnover.

Why Should You Offshore Now?

The skills shortage in Australia is intensifying, making it more difficult—and expensive—for businesses to recruit and retain talent. Offshoring offers a timely and strategic solution to overcome these challenges. Here’s why now is the perfect time to act:

1. Gain a Competitive Edge

Offshoring allows you to reduce operational costs, streamline processes, and access specialized skills, giving your business a distinct advantage in a competitive market.

2. Adapt to Economic Uncertainty

In times of economic instability, offshoring provides financial flexibility. Lower labor costs free up resources that can be redirected toward innovation, marketing, or expansion.

3. Future-Proof Your Business

Offshoring enables businesses to build a sustainable talent pipeline, ensuring long-term stability and access to expertise as workforce demands evolve.

4. Focus on Strategic Growth

By delegating routine tasks to an offshore team, you can focus on scaling your business, improving client relationships, and pursuing new opportunities.

Conclusion

Offshoring is more than just a response to Australia’s skills shortage—it’s a strategic opportunity to enhance efficiency, reduce costs, and position your business for long-term success. By leveraging a global talent pool, businesses can overcome local recruitment challenges while maintaining control over quality and operations.At FastLaneRecruit, we’re committed to helping you build an offshore team that aligns with your goals and drives growth. Don’t wait for the skills shortage to impact your business further. Contact us today to start your offshore journey and build remote team in Southeast Asia.