The global accounting industry is grappling with a critical talent shortage, with accounting services and accounting firms worldwide struggling to meet demand. In Singapore, this challenge is particularly acute, as accounting services in Singapore and accounting firms in Singapore face unprecedented pressures from regulatory complexity, workforce attrition, and evolving business needs. Below, we explore the root causes of this shortage, its implications, and actionable strategies for businesses to navigate this landscape.

Is There a Shortage of Accountants in the World?

Yes, a global accountant shortage exists, driven by an aging workforce, declining talent pipelines, and attrition. Key drivers include retiring professionals (e.g., 75% of U.S. CPAs nearing retirement), fewer students pursuing accounting degrees, and burnout leading to career shifts. The U.S. faces a 340,000-accountant deficit, while Singapore projects a 7,000 shortfall by 2025. Evolving skill demands (e.g., data analytics, sustainability reporting) further strain supply. Solutions like outsourcing, nearshore partnerships, and retention strategies (e.g., flexible work models, upskilling) aim to bridge gaps, but systemic reforms (e.g., simplifying CPA exam rules) are critical to sustaining recovery.

The Global Accounting Talent Crisis

Key Drivers of the Shortage

  • Aging Workforce and Attrition
    Over 75% of U.S. Certified Public Accountants (CPAs) reached retirement age by 2019, while fewer candidates are pursuing accounting degrees due to high tuition costs and the 150-hour CPA exam requirement. Globally, attrition rates have surged, with over 300,000 accountants exiting the profession in recent years.
  • Perceived Work-Life Imbalance
    Long hours, high stress, and seasonal demands (e.g., tax preparation) deter younger professionals from entering the field. Many view accounting as incompatible with modern expectations of flexibility.
  • Shrinking Talent Pipeline
    The number of CPA exam candidates has hit a 20-year low, disrupting the traditional “circle of life” where retiring professionals are replaced by new graduates.
  • Regulatory Complexity
    Evolving tax laws, financial reporting standards, and cross-border compliance requirements demand specialised skills. Accounting firms in Singapore must now handle niche areas like international tax regulations, making talent acquisition even more challenging
  • Rise of AI and Automation
    While AI streamlines tasks like data entry and bookkeeping, it has also deterred younger professionals from entering the field, fearing job displacement
Rise of AI and Automation

Singapore’s Unique Challenges

Demand vs. Supply Imbalance

In Singapore, this demographic shift is compounded by a 10% decline in accounting degree enrollments over the past five years, exacerbating the talent pipeline issue. This gap risks operational disruptions, including delayed financial reporting, non-compliance with tax regulations, and reputational damage.

Impact on Local Businesses

For accounting firms in Singapore, the shortage exacerbates challenges like:

  • Compliance Risks: Inadequate expertise increases errors in tax filings and financial disclosures, risking fines and reputational damage.
  • Operational Strain: Overworked teams leading to errors in payroll, accounts payable, or financial planning.
  • Increased Costs: Competition for skilled accountants drives up salaries, straining budgets for small businesses and startups
  • Client Retention: Strained relationships due to delayed invoicing or cash flow mismanagement.
  • Delayed Financial Reporting: Without sufficient staff, an accounting firm in Singapore struggles to deliver timely financial reports, hindering strategic decision-making and exposing businesses to regulatory risks
  • Stunted Growth: Companies reliant on accounting services for scaling may face delays in expansion due to inefficient financial management

Strategic Solutions for Businesses

Outsourcing Accounting Services

Partnering with accounting services in Singapore can help providers offer immediate relief:

  • Access to Expertise: Specialised firms handle complex tasks, such as regulatory compliance and tax planning, ensuring accuracy.
  • Scalability: Businesses can outsource specific functions (e.g., payroll, accounts payable) or full-service financial management
  • Cost Efficiency: Outsourcing eliminates overheads like employee benefits and training

Leveraging Technology

AI and automation tools reduce manual workloads, freeing staff for strategic roles:

  • OCR and AI: Streamline data entry and invoicing, enhancing efficiency without compromising controls.
  • Cloud-Based Platforms: Enable real-time collaboration and centralised financial data management

Nearshore Outsourcing

For multinational firms, nearshore outsourcing to regions with compatible time zones and language proficiency (e.g., Latin America) offers:

  • Deep Talent Pools: Access to skilled accountants trained in global standards like ASC 606 or IFRS 16.
  • Cultural Alignment: Shared business practices and communication styles, reducing integration hurdles.

Retention and Upskilling

  • Flexible Work Models: Offer hybrid schedules or compressed workweeks to attract talent, prioritising work-life balance.
  • Professional Development: Sponsor certifications (e.g., CPA, ACCA) or training in emerging tools like AI-driven accounting software.

Why Singapore’s Accounting Services Are at the Forefront

Singapore’s accounting firms are pioneering solutions to the talent gap:

  • Strategic Outsourcing
    DTL Accounting Group is a professional accounting firm actively embracing internationalisation. Through its strategic expansion into     Malaysia, with branches in Johor Bahru, Selangor, and Sabah. DTL has effectively mitigated manpower shortages while gaining cross-border expertise in both Singapore and Malaysia. This ensures greater compliance, operational effectiveness, and service efficiency for our clients. 
  • Technology Integration
    The adoption of AI and OCR tools balances automation with human oversight, maintaining accuracy in financial reporting.
  • Industry Partnerships
    Collaborations with local and global bodies (e.g., ISCA, MIA, CPA Australia, ACCA, AICPA, CIMA) provide access to best practices and thought leadership.
accuracy in financial reporting

Conclusion

The shortage of accountants demands proactive strategies, from outsourcing to retention-focused policies. For businesses in Singapore, partnering with accounting firms that combine local expertise with scalable solutions is critical to maintaining compliance and operational agility. By addressing these challenges head-on, organisations can navigate the talent gap while positioning themselves for long-term success.

At DTL Accounting Group, your success is our priority. We’re more than just accountants; we’re your trusted partners, providing timely, accurate information and expert advice to guide your business decisions. Ready to experience the DTL difference? Contact us today and let’s build your success story together!