How technology is fixing the finance talent shortage and bringing a renaissance

Accounting is one of the oldest professions, with double-entry bookkeeping tracing back to Roman merchants in the 14th century. And the genius of a system in which every transaction is recorded with an opposite entry in a different account continues to be standard practice. Just as accounting emerged during the shift from the Middle Ages to the Renaissance, today’s finance teams must also adapt to new challenges and opportunities.

Accounting and finance jobs once had a steady pipeline of talent, but currently, fewer graduates are choosing this profession. Coupled with an increasing number of experienced workers retiring, businesses are struggling to fill key roles. A 2022 Wall Street Journal Article revealed 300,000 accountants or 17% or the profession had recently left the field in America far outpacing the number of new entrants.

So, what is the industry doing? The labor shortages took a while to play out and many accountants were overworked. But in 2025 the industry is entering a renaissance. Finance roles are more specialized and influential. The shift is being led predominantly by accessible technology helping the finance team transform how they work.

Traditionally, finance teams rely on spreadsheets, manual inputting, reconciliation and validation of ERP data for reporting and budget management. With talent shortages, companies need a solution. Business intelligence (BI) and financial planning and analysis (FP&A) software now fill that gap.

These tools handle the data management and validation process while also offering an intuitive interface. This means the finance trust the data and can confidently pass on self-service reporting to the rest of the business, freeing up their own time.

Economic perspectives on addressing job shortages

Labor shortages have been studied by economists for years. There are some new and old theories that provide insights on how businesses can adapt.

The Job Characteristics Model (JCM) was created in the 1970s and suggests that improving job quality through autonomy, skill variety and task significance makes roles more engaging. Technology now aligns with this model by reducing tedious manual tasks, enhancing job satisfaction and attracting talent.

The Labor Supply and Demand Theory examines demographic shifts, worker preferences and technological advancements. Researchers also consider socioeconomic influences like childcare availability, affordable housing, income inequality and the pandemic's effects on the workforce. These multifaceted aspects are grouped together to highlight conditions that are more or less likely to attract talent.

Another emerging theory is the concept of an "abundance agenda." This idea has gained traction as policymakers and business leaders investigate methods to boost productivity and efficiency amidst labor constraints. The principle involves eliminating bottlenecks such as regulatory, technological or procedural that hinder businesses from reaching their full potential. For finance teams, technology is pivotal in realizing this abundance by enhancing accessibility to financial data, minimizing reliance on manual processes and enabling teams to concentrate on strategic initiatives.

While labor shortages are not a new phenomenon – the ways governments and industries have dealt with the issue are often relative to the economic and social issues of the time.

Interestingly, when Phocas integrated its financial planning and analysis software into its BI platform in 2020, it aimed to provide finance professionals with a single source of financial truth and facilitate connected planning across businesses. The intention was also to enhance the type of work a finance team can do by replacing static reports and manual workarounds with a modern, collaborative approach to the finance function. Given where we stand today, these tools proved to be prescient, especially since there was no talent shortages, no transition to hybrid working yet, nor had we experienced a global pandemic that necessitated reconsidering work-life balance. Now as well as using technology to address unsustainable tasks and talent shortages – businesses also need this technology to remain competitive, so its time has truly come.

How the finance team renaissance is playing out

Given the current economic conditions, businesses are operating in uncertain markets, with continuing inflation. The global economy is volatile and businesses need to manage cashflow with fluctuating consumer demand and more competition. These are big challenges and business leaders need Financial Planning & Analysis (FP&A) help.

Fortunately, the technology and the finance renaissance are significantly influencing the financial planning & analysis (FP&A) functions in mid-size businesses. With a data platform and proper tools, finance can now perform regular forecasting and scenario planning. The ability to perform these tasks quickly and accurately helps them mitigate risks and stay on top of cashflow and budgets.

The ability to quickly adapt to market changes and provide insightful recommendations is becoming a crucial differentiator, and finance teams are in charge.

Mid-sized companies also need to incorporate operational metrics into their financial reporting and planning, showing a broader understanding of non-financial data. The renaissance means finance teams within mid-sized companies transition from being reactive report creators to proactive, forward-thinking business partners.

As companies  struggle to attract and retain professionals in finance and FP&A, means there is increased competition for skilled workers. In response, companies are offering favorable working conditions including flexible working arrangements, specialized finance roles and of course investments in technology just as the JCM model outlines.

As talent shortages persist, finance teams are rethinking traditional hiring strategies and embracing technology as a multiplying factor. Solutions like Phocas are proving that automation and BI and FP&A tools can fill labor gaps and elevate the role of finance professionals, shifting their focus from manual reporting to important decision-making.

The future isn’t about hiring more people to manage spreadsheets. It’s about empowering finance teams with the right tools to thrive and make their work both vital and strategic.