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

In a recent webinar, industry professionals came together to discuss the accounting sector’s challenges and the opportunities we can find in them.

As part of this event, we ran a survey* – gathering responses from scores of participants and highlighting some mission-critical areas of concern and interest.

So what do accountancy professionals think about big issues like Making Tax Digital (MTD) requirements, artificial intelligence (AI), and the impact 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 start with the most important figure – only about 10% of respondents felt “very prepared” for this new way of working. Furthermore, 31.14% of respondents felt “somewhat unprepared”, and 11.47% felt “very unprepared”.

This suggests that while accountants have started to take steps towards compliance, many believe there is more work to be done to ensure 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 two questions about AI in accounting practices.

The findings suggest that while AI adoption is still in its early stages, there is some interest in leveraging 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%

Significantly, most respondents do not currently use AI. Despite the hype, only a fifth are starting to use it for some tasks.

So, is there an opportunity in this area for firms, or is AI overhyped as far as many accountants are concerned?

“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 split on whether AI will become a key tool or have a “limited impact" (8.86%).

Relative to these two opposing points, most people are taking a more "cautious yet optimistic" approach towards AI. The largest segment of respondents, 43.03%, are unsure or need more information about AI’s potential for their firm.

How are accountants handling the talent shortage?

The shortage of accounting professionals is another critical issue felt by many in the industry.

But is it a universal issue… and how is it impacting those who are 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 notable impact is the cost increase as firms strive to retain their current staff, with 19.50% of respondents signalling this is a problem. This suggests that firms are investing more in salaries, benefits, and other incentives to prevent employee turnover – and feeling a degree of financial strain.

Additionally, 14.63% of firms report that the talent shortage hinders their growth. Are we then seeing fewer expansions, new market entries, or client acquisitions due to recruitment problems?

Interestingly, it’s worth highlighting 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%

It seems almost a fifth of respondents rely on a mix of in-house staff and outsourcing for specific tasks, and only 3.27% of respondents primarily outsource key functions such as payroll, compliance, and IT.

Taking the previous question – about talent shortages – into account, is there an opportunity to offset any staff shortages with outsourcing in firms that don’t use it?

How do accountants handle the busy tax season?

Tax season (or “busy season”)  presents significant challenges for many practices.

So how do the accounting professionals we talked to 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 37.50% of respondents report that their staff often work overtime, staying late or working on weekends.

However, just one in five respondents used technology or software to streamline processes and reduce strain, and only 5% said they used outsourcing.

Are these untapped opportunities for those risking burnout this winter?

Interestingly, 16.25% of respondents indicate that busy season does not impact 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% thought it would be the same as last year. Just over a quarter (25.59%) said they thought it would be more hectic.

Are accountants investing in technology?

Investment in technology is critical for the future success of accounting practices, and it seems many in the industry agree. Only about on 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 on their mind this tax season.

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

And turning the tables on tax season is just 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 reshaping UK accountancy and what both mean 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)