Nearly 3 in 4 accountants turning away work due to lack of staff

Accountancy companies are facing the worst talent crisis in years, according to research that gauged views from businesses around the world.

The Accounting Talent Index 2025, produced by outsourcing specialists Advancetrack, has surveyed a number of key business leaders and professionals in the sector, revealing that as many as 74% are having to turn away work because they don’t have the staff to deliver it.

Companies shared that they were investing heavily in training and upskilling to try and fill the void; but had also resorted to outsourcing some of their work overseas to struggle on.

Mounting crisis

The Advancetrack report, which was based on global data, revealed that a staggering 94% of firms say recruitment issues are now holding back their growth.

Analysis also revealed that 61% of respondents say they have outsourced work overseas to expand capacity.

Companies are furiously working to find solutions. 42% share that they are investing heavily in staff training and development to try and upskill the budding accountants of tomorrow.

38% of businesses have also upgraded their technology, including their systems, in a bid to be more efficient and therefore meet demand.

Demand looming

In the UK, the Government has paused (not cancelled) its HMRC reforms, after being warned it would cause a red tape pile up for SMEs.

As we creep towards April 6, when MTD starts being implemented, research suggests that nearly half of sole traders don’t know about the changes; and nearly three quarters don’t understand what MTD will mean for them.

However, this report exposes that accountancy firms already do not have the staff to meet demand – and this is before Making Tax Digital (MTD) really bites in the UK.

Outsourcing to keep clients

The demand for accountancy experts in the UK is undoubtedly going to increase beyond the April deadline, but this report suggests that firms currently don’t have the staff to meet this need. Outsourcing is playing a role, the data reveals, but it’s not enough.

The hike in employer NICs and increases in overheads have already been pushing more UK ventures towards outsourcing options across all industries.

Virtual assistants – whether human or AI – are proving increasingly popular as they can deliver support but are paid on an hourly or day rate. This means businesses do not need to pay NICs contributions; benefits or a fixed salary. They can also request help as and when needed, delivering flexibility when budgets might be tight.

For those accountancy firms looking to fill the gaps while they find the right talent or upskill employees, outsourcing is a way of bridging the gap.

Technological solutions

But, says Advancetrack MD Vipul Sheth, outsourcing is a short-term solution. The profession can’t “hire its way out” of the problem. Instead, he is calling for a complete change of operating models if businesses want to grow. Technology is key in this.

In the UK, this is a pressing issue. As SMEs approach the deadline for HMRC’s digital demands, software is going to be key in helping them stay compliant.

Accounting software is a DIY approach for those who are understaffed; but requires investment both for the initial outlay and then for training.

However, with rapid advancements, especially using AI, software could be the quickest solution for businesses as they scramble to find staff and maintain growth.

With nearly half of respondents saying that the talent crisis is worsening, solo accountants and microbusinesses need to act now to ensure they keep their clients.