What does the UK accountancy Sector look like?

The UK accountancy world is buzzing with change. From technology to talent, M&A activity to ESG goals, the industry is evolving fast.?

Whether you’re an accountant wondering about your next career move or a firm looking to stay ahead of the curve, one of the best ways to understand the current state of the sector is to turn to industry news outlets and thought leaders.?

So, we’re turning to Accountancy Age and exploring its latest Sector Outlook Report.?

With trends like AI adoption, sustainability goals, and a focus on talent retention shaping the future, the opportunities and challenges are bigger than ever.?

Let’s break down the key insights from the report, what it all means for both accountants and firms, and how you can stay ahead of the game.?

Mergers, Acquisitions, and Private Equity?

Let’s start with some big news: over 70% of accountancy firms are bracing for more M&A activity and private equity investment in 2025.??

This could be a game-changer, especially for firms looking to grow or enter new markets. Here’s how it shakes out:?

• Small and Mid-Sized Businesses (<￡50 million): These guys are playing it cautious. Only about 20% expect a big jump in deals, and surprisingly 4.2% are predicting a drop.?

• Mid-Sized Businesses (￡50-￡500 million): The optimism is real here. Over 41% foresee a significant increase in deals, with many more expecting moderate growth.?

• Large Businesses (>￡500 million): It’s full steam ahead! More than 80% anticipate a rise in M&A and private equity activity, showing a clear appetite for aggressive growth.?

For accountants, this means more opportunities to support businesses through these transitions. Auditors, for instance, can play a pivotal role in ensuring due diligence during mergers and acquisitions, helping businesses navigate complex financial landscapes with confidence.??

Tax professionals, on the other hand, are crucial in advising on tax implications and structuring deals to maximise efficiency and compliance?

For firms, it’s a chance to bolster advisory services and take on new challenges. By expanding their offerings, firms can position themselves as indispensable partners to clients navigating the complexities of M&A and private equity investments.?

Firms also have the opportunity to diversify their client base and enter new markets, leveraging their expertise to address a broader range of client needs. However, it’s essential that firms manage culture during a merger to maintain a positive work culture.?

The Talent Tug-of-War: Finding and Keeping the Best People?

67% of firms say talent acquisition and retention is their number one challenge.??

Finding great people and convincing them to stick around is harder than ever. ?

Mid-sized firms seem to be feeling the heat the most, with 82.4% reporting struggles in attracting and retaining top talent.??

For professionals, this is great news. Your skills are in high demand, and you have more leeway than ever to use the talent shortage to your advantage and negotiate the best salary, perks and terms.??

And for firms, it’s a wake-up call to invest in your people, whether that’s through better pay, clear career paths, or a focus on work-life balance.?

ESG and Sustainability: More Than Just Buzzwords?

Let’s talk about ESG (Environmental, Social, and Governance). It’s no longer just a buzzword; it’s a core focus for many firms.?

With the energy crisis and rising client expectations, accountants are stepping up to help businesses hit their sustainability goals. But here’s the kicker: less than 10% of firms are actively seeking B-Corp Accreditation. Surprised? So are we.?

There’s huge potential here for firms to differentiate themselves by leading on ESG. And for candidates? Showing an interest or expertise in this area could make you a standout hire.?

In fact, the Cone Communications Millenial Employee Study found that 64% of Millennials won’t take a job if the company doesn’t have a strong CSR policy, and you might be surprised to know 75% of the millennial workforce would take a pay cut to work for a socially responsible company. ?

And when you consider that the accounting profession has seen a decline of 5% over the last three years, it’s clear that firms need to be doing more.?

Technology and AI: The Future Is Here?

The tech train isn’t slowing down. Over 75% of firms reported an increase in their tech spend year-on-year, and AI is making big waves.??

Right now, 30% of firms are already using AI, and another 23% are planning to dive in next year. But it’s not all rosy. 15% admit they’re struggling to adapt to technological advancements.?

And if that wasn’t enough, 46% of firms are also losing sleep over cybersecurity risks due to the rapid advancement of computer technology.

If you’re a tech-savvy accountant, your skills are more valuable than ever. And if you’re a firm, investing in tech training could be the difference between thriving and falling behind.?

Exploring New Markets and Changing Client Needs?

Nearly 40% of firms are planning to enter new markets in the next 12 months.

That’s a bold move, but it makes sense when you look at how client needs are shifting. Advisory services like corporate finance, business recovery, and digital transformation are in high demand, and firms are adapting fast to meet these needs.?

For candidates, this is your chance to align yourself with a firm that’s forward-thinking and growth oriented. Look for opportunities where you can contribute to innovative projects, such as implementing new technologies, exploring ESG initiatives, or expanding into untapped markets.??

For firms, it’s all about having the right people in place to seize these opportunities. This means identifying talent with the skills to drive innovation, adapt to market changes, and deliver exceptional client service. Firms need leaders who can spearhead new initiatives, such as expanding into emerging markets or adopting cutting-edge technology?

What’s the Deal with Firm Sizes??

The outlook varies a lot depending on the size of the firm:?

• Small and Mid-Sized Businesses: Taking a cautious approach, with some expecting growth and others holding back.?

• Mid-Sized Businesses: A strong focus on growth, with many expecting a moderate or significant rise in M&A activity.?

• Large Businesses: All-in on growth, with most expecting a big uptick in activity.?

This kind of insight can help you decide where you’d fit best as a candidate or where to focus your efforts as a firm.?

The Bottom Line: Opportunities Are Everywhere?

Here’s the thing: whether it’s M&A activity, talent acquisition, ESG goals, or tech advancements, the accountancy sector is bursting with opportunities. The key is to position yourself - or your firm - to take full advantage.?

If you’re a candidate, now’s the time to showcase your skills, especially in areas like digital transformation, sustainability, or advisory services. And if you’re a firm, this is your chance to attract top talent and stay ahead of industry trends.?

Don’t get left behind.??

At Public Practice Recruitment Ltd, we’re the experts in accountancy recruitment. Whether you’re an ambitious candidate looking for your next big opportunity or a forward-thinking firm wanting to secure the best talent, we’ve got you covered.??

We’ve helped countless professionals and firms navigate the complexities of the accountancy sector, and we’re ready to help you do the same.?

This isn’t just about filling roles; it’s about building futures.??

Reach out to us today to get started.??

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