In our recent whitepaper, “Tackling the Capacity Crunch in Accountancy: A Three-Stage Journey” we interviewed three accountants including Hollie Moore, Early Careers Manager at BKL, a top 50 firm of chartered accountants and tax advisers based in London, to delve into how the firm attracts, engages, retains and nurtures talent – with a strong focus on leveraging technology for support.
During an insightful follow-up webinar, Hollie discussed 4 major challenges and showcased how technology has been implemented at BKL to address the capacity crunch in accounting.
> Watch the webinar on-demand today
In the ACCA’s recent report on UK Talent Trends for 2024, over 30% of respondents cited wellbeing and mental health, along with workload and insufficient resources, as their top work-related concerns for the future. An influx of clients coupled with a reduction in staff is a common struggle for a third of accountants. It’s no surprise, then, that 84% of accountants who joined Silverfin’s webinar agreed that the capacity crunch is only getting worse.
Hollie echoed this concern, claiming that “the capacity crunch in accounting is not reducing. It’s something that we should be talking about, especially related to the challenges technology can help with and how firms can support adoption.” This indicates a widespread and pervasive capacity crunch and a sector struggling to find and retain the right talent to ensure success.
In this blog post, we’ve outlined the 4 challenges that are keeping accountants up at night – and the steps you can take to overcome the capacity crunch and future-proof your accounting practice.
Challenge 1: Finding and nurturing the right talent
With the ATT predicting a shortage of 60,000 accountants in the UK by 2050, hiring and retaining the right talent has never been more of a challenge as modern expectations continue to reshape what makes an ideal candidate. As Hollie said, “In the past, firms wanted someone that was good with numbers, a back office person. But with the introduction of tech, ambitious firms like BKL need a more personable person. People buy from people. So, that personable aspect is definitely higher on the agenda.”
But in today’s competitive market, finding well-rounded candidates is challenging. Plus, the demand for accounting services is growing, making it an employee’s market. With more businesses seeking compliance and advisory support, recruitment becomes even tougher. Additionally, career paths for accountants are diversifying, with many moving into fintech and tech roles, increasing turnover rates.
Coupled with this, leadership in accounting firms is also shifting. Traditional firms, often led by founding partners for decades, are now adapting to private equity interest and rapid technological changes. Initiatives like HMRC’s Making Tax Digital (MTD) have pushed firms to adopt technologies such as Xero, QuickBooks, and Sage. As Hollie pointed out, “for those who weren’t interested in that change, it brought some retirement decisions forward,” prompting firms to reassess their technological capabilities and leadership.
So, what’s the solution? To tackle these challenges, Hollie is firm in her belief that firms must foster a culture that values continuous learning, technological proficiency and strong interpersonal skills. This approach will help attract and retain the talent needed to succeed in the ever-evolving accounting landscape.
Download our whitepaper today to hear from 3 trailblazing accountants on the capacity crunch
Challenge 2: Keeping people engaged at work
According to Hollie, “work life balance, especially post-COVID, has created a major shift in what people are looking for from employment. They’re not interested in doing sixty, seventy hour weeks. They really want that balance between working and home life.” Today’s employees, particularly the younger generation, seek a healthy balance between work and personal life. “They want that flexibility in the workplace and to be able to have a life,” said Hollie. This shift is evident in the expectations of Gen Z, who prioritise work-life balance and flexibility when considering job opportunities.
Company culture has also become a significant consideration, with candidates valuing a supportive and balanced work environment as much as, if not more than, their salary.
The solution? To keep employees engaged, firms must adapt to these evolving expectations and foster a culture that promotes flexibility and work-life balance.
Challenge 3: Training people in a competitive environment
In today’s competitive accounting world, technological training is key to developing and evolving skills. According to Hollie, advancements in AI and automation have reshaped the profession, making it crucial “in the current climate to train those trainees in bridging the gap between the theoretical and the practical.” Doing so can enhance decision-making processes and prepare future advisors for complex tasks.
Historically focused on detailed bookkeeping, modern accounting is now centred on interpreting data and using it to understand the broader impact, thanks to technology handling repetitive tasks. For Hollie and BKL, “Silverfin has played an important part in that. Silverfin has helped BKL streamline its processes and ensure trainees are prepared for tech-driven environments.”
Looking forward, Hollie anticipates that universities will adapt courses to reflect technological advancements, better preparing future accountants for industry. In the meantime, the capacity crunch environment makes effective training, which combines technical proficiency with soft skills development, is essential to shape the accountants needed now.
Challenge 4: Maximising people’s contribution to growth
93% of accountants believe that technology helps them add more value for their clients. And at BKL, implementing the Silverfin platform has been fundamental to enhancing the team’s efficiency.
As Hollie explained: “When I first came on board, we had six pods that made up the team, and each pod was working in a slightly different way. This made it very difficult to share resources around.” To overcome this challenge, BKL “used Silverfin to streamline processes and achieve consistency across the whole team. We’re now at nine pods with trainees or junior members of staff able to move between pods because they do the same work in each pod. Silverfin has helped BKL not only enhance skill development but also maximises resource utilisation across the firm.”
It goes without saying that in today’s world, technology plays a critical role in attracting and retaining talent. Hollie noted that candidates prioritise workplaces that leverage technology to enhance efficiency and improve systems. In her own personal experience, “I wanted to go somewhere that was not just using the tech basics, but that was really embracing the technology to improve processes, systems and efficiencies.” She goes on to say that ultimately, “if a candidate doesn’t like the software that a company uses, it’s going to be a problem.”
A final word on the capacity crunch
As we wrapped up the webinar, Hollie pointed out that, while AI and technology will undoubtedly transform the accounting profession, they will not render accountants obsolete. She stressed that although “it will change how the role happens and what is done on a day-to-day basis, there’s always going to be a need for advisory. There are so many different options that AI couldn’t come up with. So, even though the scope of an accountant’s role is going to change, I don’t think it’s going to be made redundant.”
Ultimately, embracing these changes and leveraging technology will empower accountants to provide even greater value – and overcome the challenges posed by the capacity crunch.
Request a demo with Silverfin today and take the first step towards transforming your accounting processes.
