UK accountancy inefficiencies costing GBP £5.328 billion

New research has found that inefficiencies within UK accountancy firms are resulting in a loss of 16% in potential annual revenue.

According to Silverfin's 'All Accounted For' 2025 report, these inefficiencies equate to an estimated GBP £5.328 billion in lost revenue, based on accountancy firms' GBP £33.3 billion contribution to UK GDP.

The report draws upon a survey of 350 partners and employees from large and medium-sized accountancy firms in the UK. Sampled firms included those with annual turnovers between GBP £1 million and GBP £1 billion and workforces of 15 or more employees.

Analysis of billable hours indicates that each full-time accountant is losing nearly GBP £48,000 in potential earnings every year due to outdated systems, repetitive administrative duties, and inefficient processes.

The research found that while 51% of firms list growth as their primary strategic focus, only 14% of firm partners' time is devoted to strategic planning activities. By contrast, for every hour spent on client advisory, 1.5 hours are dedicated to internal administrative work.

Economic instability was cited as an obstacle to growth by 34% of respondents, while 23% pointed to a technical skills gap as a barrier to digital transformation efforts.

Day-to-day operations are also affected by inefficiencies, with accountants losing an average of 1.2 hours each working day to tasks considered low-value, including manual data entry, chasing colleagues or clients, and repetitive compliance procedures. Outdated or poorly integrated technology systems were highlighted by 20% of respondents as a significant time drain.

In addition to the commercial impact, the study drew attention to the effect on accounting professionals' wellbeing. Twenty-five percent of accountants reported signs of burnout, and 31% said they routinely work six or more extra hours per week. In response, 77% stated that they would support the introduction of a formal right-to-disconnect policy. However, 21% found the work of training and mentoring junior staff to be mundane.

Technology adoption is widespread, with 89% of firms investing in automation and digital solutions. Despite this, only 8% of time is being allocated to the implementation of new technology and 9% to staff training, potentially limiting the benefits from these investments.

The report notes that the use of artificial intelligence in accountancy firms shows some promise. Eighty-five percent of firms believe AI is helping them save time, with an average time saving estimated at 9%. By 2028, respondents expect time saved to increase to 12% of total working hours. Nevertheless, 44% are unsure of how AI could benefit them, and 28% highlighted resistance to change among staff as a barrier to effective implementation.

Lisa Miles-Heal, Chief Executive Officer of Silverfin, said: "This isn't just about inefficiency, it's about lost opportunity. Every hour wasted is an hour that could be spent advising clients, growing the firm, and making a real difference to UK businesses.

"Technology alone won't solve the problem. But when firms connect the dots between data, skills, and strategy, and actually act on it, that's when the real transformation happens. That's how technology becomes a true growth engine, not just another tool."

The survey also detailed that the mean annual revenue for firms in the sample was GBP £84.96 million, with a mean firm size of 291 employees and a mean billable hours loss per firm estimated at GBP £13.9 million per year.