The UK accounting sector is struggling with a shortage of talent, and outdated stereotypes are contributing to the decline in interest in this profession.
In a survey of 337 accounting and bookkeeping professionals conducted by accounting software provider FreeAgent, 57% of respondents cited negative stereotypes for deterring individuals from considering this profession. High education costs (47%) as well as the long qualification process (42%) are also challenges.
A little under 38 percent of respondents stated that the lack of knowledge about the diverse skills and opportunities in accounting is a factor that further compounds the talent shortage. Just under 29% cite limited access to internships and apprenticeships as a barrier.
Diversity, equity, and inclusion
Accounting professionals continue to face significant discrimination and bias. Twenty-nine percent (20.9%), of respondents, reported bias against them based on gender, race or ethnicity.
The future of the industry is dependent on addressing diversity, equity and inclusion in the workplace. The respondents called for more flexibility in work arrangements (41,9%), increased transparency of pay and promotions (38.2%), as well as improved hiring practices (33.9%). Mentorship and coaching were also mentioned (32%) as well as enhanced parental leave policies (26.7%).
Rachel Harris, the founder of Accountant_she said: “Addressing the decline in accounting enrollments does not only mean attracting new talent. It also means fostering a diversity and inclusive workforce.” To create a more equal profession, we need to tackle the myths that discourage people from choosing a career in accounting, as well the systemic obstacles that prevent their advancement.
Many people do not know about the rewarding and diverse careers available in accountancy. Misconceptions can discourage students. Accountancy reforms are needed to ensure the industry’s sustainability and health.
The skills needed to succeed in the accounting sector are changing as well. In the next three to 5 years, 69.3 per cent of respondents believe that greater technical expertise will be essential, especially in terms of working with new processes and software. Many (61.3%) stressed the importance of understanding AI and smart data technologies.
As legislative changes are implemented, tax expertise will be more in demand. 57.1 percent of respondents indicated that it is important. 53.1 percent of respondents also noted that accountants should provide clients with broader business guidance, and 34 percent emphasized the need to develop stronger interpersonal skills, as client relationships are becoming more important.
Roan Lavery is the CEO and cofounder of FreeAgent. He said: “Our research shows not only how accountants feel regarding the decline in talent in the industry, and how it will impact the economy in general, but how they view accountancy as a profession in the future.
It is vital that the future generation of accountants are supported and given the chance to develop new skills. It will be difficult for many small businesses to grow in the future if they do not have access to financial professionals who are skilled at guiding them on compliance, planning and growth.
