What accountancy professionals think about MTD, AI, outsourcing and more

In a recent webinar, industry professionals gathered to discuss the challenges facing the accounting sector and the opportunities that can arise from them.

As part of this event, we conducted a survey, gathering responses from numerous participants and highlighting some essential areas of concern and interest.

What do accountancy professionals think about major issues such as Making Tax Digital (MTD) requirements, artificial intelligence (AI), and the effect of the industry’s talent shortage?

Let’s find out.

Are accountants prepared for Making Tax Digital (MTD)?

One of the most pressing issues for accountants today is the upcoming Making Tax Digital (MTD) requirements.

MTD for Income Tax Self Assessment (MTD for ITSA) is set to become mandatory for businesses, self-employed people and landlords earning over £50,000 in April 2026.

Those with an income over £30,000 will be mandated from 2027.

“How prepared do you feel your business is for the forthcoming MTD requirements?” (61 responses)*

• Very prepared: 9.83%
• Somewhat prepared: 44.26%
• Somewhat unprepared: 31.14%
• Very unprepared: 11.47%
• Unsure of forthcoming MTD requirements: 1.63%

Let’s begin with the most significant figure – only about 10% of respondents felt “very prepared” for this new way of working. Additionally, 31.14% of respondents felt “somewhat unprepared, ” and 11.47% felt “very unprepared.”

This indicates that although accountants have begun taking steps toward compliance, many feel that further efforts are necessary to achieve full readiness.

Read more:

How to tackle the toughest moments of tax season

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What role does Artificial Intelligence (AI) play in accounting?

Our survey also asked about AI in accounting practices.

The findings indicate that although AI adoption is still in its early stages, there is considerable interest in utilising its capabilities.

“How does your accounting practice currently utilise artificial intelligence (AI)? Please select the statement that most applies.” (61 responses)

• AI forms a critical part of our daily operations: 1.63%
• We have started to introduce AI to support on some day-to-day tasks: 19.67%
• We do not currently use AI: 68.85%
• Not sure how our accounting practice uses AI: 9.83%

Notably, most respondents do not currently utilize AI. Despite the buzz, only one in five are beginning to incorporate it for certain tasks.

So, is there an opportunity for firms in this area, or do many accountants think AI is overhyped?

“How do you plan to use AI in your accounting practice in the next 12 months? Select all that apply.” (79 responses)

• AI will significantly automate routine tasks, improving efficiency: 15.18%
• AI will become a key tool in data analysis and decision-making: 8.86%
• AI will replace some low-level jobs: 13.92%
• AI will play a major role in client advisory services: 5.06%
• We will use AI to help win new business: 5.06%
• AI will have limited impact on the day-to-day tasks of accountants: 8.86%
• Unsure/need more information on AI’s potential impact: 43.03%

Opinion was evenly divided on whether AI will become a key tool or have a “limited impact” (8.86%).

Relative to these two opposing viewpoints, most people are adopting a more “cautious yet optimistic” stance regarding AI. The largest segment of respondents, 43.03%, remain uncertain or require more information about AI’s potential for their firm. 

How are accountants addressing the talent shortage?

The shortage of accounting professionals is a critical issue experienced by many in the industry.

But is it a universal issue, and how is it impacting those affected?

“How is your accounting practice currently feeling the effects of a shortage of accounting professionals in the industry? Select all that apply.” (82 responses )

• We are struggling to win new business as a result of not being able to hire more staff: 7.31%
• Our costs are increasing as we aim to retain staff: 19.50%
• We are planning to outsource some day-to-day accounting tasks to third parties to manage a shortage of resources: 6.09%
• Staff are working longer hours to make up for a shortage in staff: 9.75%
• The talent shortage is impacting our growth ambitions: 14.63%
• We are not currently seeing a shortage of accounting professionals in the industry: 21.95%
• Not sure: 18.29%

Of those affected, the most significant impact is the cost increase as companies strive to retain their current staff, with 19.50% of respondents indicating that this is a problem. This suggests that companies are investing more in salaries, benefits, and other incentives to prevent employee turnover, while also experiencing a degree of financial strain.

Furthermore, 14.63% of firms report that the talent shortage impedes their growth. Are we consequently observing fewer expansions, market entries, or client acquisitions due to recruitment challenges?

Interestingly, it’s important to highlight that 21.95% of respondents do not perceive a talent shortage.

Read more:

Three areas where you can change adversity into opportunity

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To what degree do accountants use outsourcing?

“What is your company’s current approach to outsourcing within your accountancy practice? Select one.” (61 responses)

• Tasks are mostly fulfilled by in-house staff and rarely outsource: 71.13%
• We rely on a mix of in-house staff and outsourcing for specific tasks: 18.03%
• We primarily outsource key functions (e.g., payroll, compliance, IT): 3.27%
• Not sure: 6.55%

Almost a fifth of respondents rely on a combination of in-house staff and outsourcing for certain tasks, with only 3.27% primarily outsourcing key functions like payroll, compliance, and IT.

Considering the previous question about talent shortages, is there an opportunity for firms that don’t currently use it to offset any staff shortages through outsourcing?

How do accountants handle the busy tax season?

Tax season, often referred to as “busy season,” presents significant challenges for many practices.

How do the accounting professionals we spoke with cope?

“How does the increased workload during the busy season (e.g., year-end filings, tax returns) impact your accountancy practice? Select all that apply.” (80 responses)

• We rely on additional temporary staff or contractors: 1.25%
• Our staff often work overtime, staying late or working on weekends: 37.50%
• We use technology/software to streamline processes and reduce strain: 20.00%
• We outsource certain tasks to third parties to manage the workload: 5.00%
• We struggle to manage the workload effectively during busy season: 15.00%
• There is a noticeable decrease in staff morale: 5.00%
• Busy season has no impact on our accountancy practice: 16.25%

An unsurprising 37.5% of respondents report that their staff frequently work overtime, staying late or working on weekends.

However, only one in five respondents utilised technology or software to streamline processes and alleviate strain, and merely 5% reported using outsourcing.

Are there untapped opportunities for those at risk of burnout during the busy season?

Interestingly, 16.25% of respondents indicate that the busy season does not affect their accountancy practice.

Furthermore, of the 61 professionals who responded to another question (“How will this year’s busy season compare to last year’s?”), 62.29% believed it would be similar to last year. Just over a quarter (25.59%) indicated that they thought it would be more hectic.

Are accountants investing in technology?

Investment in technology is essential for the future success of accounting practices, and it appears that many in the industry concur. Only about one in five have ruled it out for the next year:

“Do you plan to increase your practice’s investment in technology over the next 12 months?” (61 responses)

• Yes: 44.62%
• No: 21.31%
• Not sure: 34.42%

Make the most of every opportunity with our webinar

Clearly, accountants have a lot to consider during the busy tax season.

So, if you missed it, our webinar, Turning Busy Season Challenges into Growth Opportunities, shares tips from experts in your sector.

Turning the tables on tax season is only part of the discussion.

• Explore how you can tackle the stress of tax season.
• Understand how Making Tax Digital (MTD) and the Economic Crime Bill are transforming UK accountancy and what both entail for your firm.
• Gain insights from industry leaders on enhancing your service offerings.

Click here to watch the event on demand.

*(Please note: survey result figures are affected by rounding and when respondents are allowed to pick more than one result)