How we can solve the skills shortage in finance
How we can solve the skills shortage in finance
There’s no denying that accountancy, and the wider financial services sector, is facing a skills shortage. In September 2024, Skills England identified ‘Accounting and Finance Technicians’ as one of the 10 most critically in-demand occupations – alongside care workers and logistics, warehousing and transport directors.
While other sectors, such as healthcare, might need a greater volume of workers, the financial services and insurance sector has the highest proportion of the total industry workforce (69.4%) in demand; with 994k workers needed.
So, what is the cause of this shortage and what can we do about it?
An aging workforce
When you look at the industry worldwide, there is one common pattern: an aging workforce in which more senior professionals are retiring than there are new candidates training.
A 2015 report from the Association of International Certified Professional Accountants predicted that 75% of chartered professional accountants would retire within the next 15 years. 10 years on and it’s clear that we haven’t done enough to replace them.
A new image
Our profession has long been dogged by outdated and mistaken perceptions of what an accountant is: pin-striped suits in offices, crunching numbers on a spreadsheet.
Many Association of Accounting Technicians (AAT) students tell us that they didn’t see themselves fitting the perceived typical mould of an accountant, until they realised accountants come from all walks of life. In a time that maths has become the most popular A-level subject, it’s about time that we collectively champion the appeal of accountancy and the diversity of career routes available in the 21st century.
Addressing the skills gap
The skills shortage across the accounting profession, however, cannot just be blamed on an exodus of over-50s from the workforce. We also have difficulty retaining women in senior roles and broadening the profession to attract talent from wider socio-economic groups.
The good news is that businesses today don’t just need people who can process numbers; they need individuals with practical, real-world skills. As well as school leavers, this potentially opens up the profession to workers seeking a change of career or looking to re-enter the workforce.
A modern, accurate depiction of what accountants do is crucial if we want to inspire a broader pool of talent. The reality is that accountants are problem-solvers, business enablers, and contributors to society’s biggest challenges, including sustainability and social mobility.
Accountants have the ability to supercharge businesses, contribute positively to society and even build their own business if they wish to, no matter what they look like, or what age they are. Just speak to Lucy Cohen, AAT Vice President and founder of Mazuma, the UK’s most successful female founded firm, or Grace Hardy, who at the age of 21 has her own business advising other young entrepreneurs and start-ups, as well as older clients.
The importance of Accounting Technicians
One of the most pervasive myths I encounter is the idea that chartered status is the only route to success in accounting, or even the only end game. I believe that this deters promising individuals from entering the profession. However, the Accounting Technician (AT) route offers an alternative pathway that is more accessible and as recognised and valued a designation as an Accountant.
Some of our qualified ATs work with some of the biggest companies in the world – Microsoft, KPMG, Network Rail, and even the NHS – to meet their finance skills needs. But the flexibility of AAT qualifications means that opportunities are not limited to large firms.
AAT’s 7,000 licensed members support 840,000 small businesses. This route works equally well for community-focused entrepreneurs as it does for those aiming to lead multimillion-pound ventures.
But it’s time that we recognised these roles – as with bookkeepers and payroll professionals – as destinations in their own right. When the Department for Education highlighted the demand for ‘Financial and Accounting Technicians’ in September 2024, they noted over 41,300 job vacancies, as well as a need for 418k ‘book-keepers, payroll managers, and wages clerks’ in non-financial industries.
Technicians handle many of the financial tasks that companies need to thrive as well as providing essential support to chartered accountants who are often stretched thin by other demands. The qualification can then be used as a springboard into chartered status or other senior financial roles, through higher level courses, if desired.
Making accounting accessible
At AAT, we believe in opening the door for everyone, regardless of their background. Our qualifications can be started without A-Levels, and our apprenticeships offer a practical, affordable alternative to university, dispelling the myth that university is the only route into a professional career.
For school leavers, apprenticeships can provide a gateway to becoming a respected finance professional in just a few short years. For those seeking to reskill or change careers, it offers life-changing opportunities, with real-world value.
Simplifying routes into vocational qualifications and apprenticeships, and ensuring greater parity between higher and further education would make an enormous difference. The ongoing skills review under Skills England provides an unmissable opportunity to make this change.
It’s also time to rethink how we engage with unqualified accountants. These individuals often have valuable skills and experience, but without formal qualifications, they operate outside of professional standards. Instead of leaving them in the wilderness, we should encourage them to take pride in their skills through professional recognition. I hope that the regulation of the tax advice market, for which we have long campaigned, will be progressed this year, and provide an opportunity to these experienced people, to gain formal recognition. Inclusivity benefits everyone: businesses, individuals, the sector and society.
A path forward
As we face the challenge of what some have called an ‘existential’ skills crisis, the accounting profession has an incredible opportunity to reshape its future. By modernising perceptions, supporting alternative career pathways, and fostering inclusivity, we can meet the growing demand for finance professionals while creating a workforce that truly reflects the diverse needs of businesses today.
We are a sector that can easily offer the flexibility and rewards that the workforce of the future will demand. Accounting isn’t just about crunching numbers it’s about enabling businesses to succeed, supporting communities, and contributing to society in meaningful ways, including the provision of sustainable economies. If we can get this message across, we’ll inspire a new generation of accountants to join us in shaping the future of our profession.
This article is sourced from the following link:
https://www.accountancyage.com/2025/02/12/how-we-can-solve-the-skills-shortage-in-finance/
