HSBC’s Capex 2024 Report: What it Means for Firms

Public practice is in an endless pivot.?

With political shifts, technological breakthroughs and the rise of private equity all at play, firms are finding themselves at a unique crossroads.?

Whilst challenges do loom on the horizon, there’s also a sense of optimism.??

HSBC’s latest commercial banking (Capex) report sheds light on the overall morale of UK businesses. It found that 55% of businesses are positive about growth in the coming year – a significant rise from 46% just a year ago .??

Stuart Tait, head of commercial banking at HSBC UK, says the study shows that “optimism is climbing, and ambitions are rising to match”.??

For firms, these statistics show a shifting business environment. As businesses gear up for growth, their reliance on robust financial management and strategic advice from accountants will only intensify.?

Good for business???

Yes.??

Bad for talent acquisition???

Only if firms aren’t prepared.?

So, what does this surge in optimism mean for an already competitive marketplace??

And more importantly, how can accountancy practices find and retain the talent needed to meet growing demand???

Today, we’ll explore the pros and cons of this “positive inflection point” and how firms can stay on the cutting-edge of the fierce competition for talent within public practice.?

HSBC’s 2024 Capex Report??

Optimism is on the rise, and businesses are ready to take advantage of it.??

Among the 1,583 firms surveyed in HSBC’s Capex report, two-thirds now have growth ambitions, with many setting their sights high.?

In fact, more than 22% of UK firms are aiming to grow by at least 20% over the next year, marking the highest level of ambition recorded since the report’s inception four years ago. This bounce in confidence reflects a general sense of resilience despite the global challenges of the past few years, including the Covid-19 pandemic and supply chain disruptions.?

Inflation has played a large role in the country’s economic uncertainty and HSBC’s report comes as the Consumer Price Index (CPI) level of inflation drops to 1.7%? - the lowest level in three years. This news will add to the nation’s optimism, but will it influence business decisions??

The report also highlights how technology is now at the heart of growth ambitions for UK businesses, with many firms planning to allocate significant resources to tech investments – from AI-driven analytics to cloud-based accounting platforms.??

This focus on technology is also particularly pronounced in sectors like IT, where 70% of businesses are optimistic about their growth prospects due to emerging technologies.?

While the overall outlook is positive, the HSBC Capex 2024 report does highlight some caution in certain sectors, particularly those reliant on consumer spending.?

Industries such as hotels, restaurants, and high street retail are feeling the squeeze due to rising costs and changes in consumer behaviour. According to the report, 35% of businesses in the hospitality sector and 21% of retail firms are not optimistic about the year ahead.?

“Some of the shocks that have come along in the past three to five years have proved that UK businesses are more resilient and able to navigate... better than we would’ve previously expected,” says Tait.??

The Growth Challenge for Firms?

HSBC’s 2024 Capex report shows an encouraging bounce in optimism that we can all be happy about.??

But this rising ambition also underscores the need for firms to be proactive in their approach to recruitment.??

We’ve spoken before about why it’s important for hiring managers to look towards recruiting the next generation of accountants . And now that more businesses are looking to grow, the demand for accountants is skyrocketing.?

Clients now expect their accountants to offer strategic financial advice that drives business performance. They want partners who can forecast future trends and provide real-time insights and green expertise .?

Firms that successfully recruit top-tier talent will be better positioned to support their clients through the financial complexities of growth, while those who fall behind may struggle to meet the rising demand.?

Technology and Talent?

As the tech-fuelled boom continues to reshape the accountancy landscape, clients now expect more than just number crunching.??

The Capex report provides a crucial insight: around 75% of UK businesses now place technology at the heart of their growth ambitions. Because of this, there’s a huge demand for professionals who understand how to integrate new technologies, such as AI, into financial processes.?

As businesses increasingly rely on new tools, accountants need to be on the cutting-edge to deliver value to clients.??

In fact, the World Economic Forum’s Future of Jobs Report predicts that 50% of the global workforce will need re-skilling by 2025 as adoption of new technology increases. This is particularly relevant for the accountancy sector, where digital transformation is reshaping the industry at a rapid pace.?

How a Specialist Recruitment Partner Can Help?

With two-thirds of UK firms expressing a desire to grow, firms must ensure they have the right team in place to help businesses meet their goals.?

It really is as simple as this...?

Firms with the best people are firms with the best performance.?

But the challenge lies in finding candidates who not only have these tech skills but who also possess the client-centric approach needed to build trust and foster long-term relationships.??

This balance is what sets top-tier accountants apart, and it’s what we focus on when sourcing talent for your firm.?

At Public Practice Recruitment Ltd, we know that finding the right person for the job isn’t just about ticking boxes on a resume. It’s about identifying individuals who align with your firm’s values, who can integrate seamlessly into your culture, and who are equipped to help you navigate the complexities of today’s business environment.?

Need help finding the right people to lead your firm into a successful future??

Want to bolster your firm’s expertise in technology-driven accounting by securing experienced professionals??

Our team is here to partner with you in solving your recruitment challenges, ensuring that your firm has the talent it needs to thrive. Using our unmatched market knowledge, we work with leading firms across the UK to help them stay ahead in the rapidly changing market.?

Talk us through your recruitment needs by contacting our team today. We can’t wait to hear from you!?