UK accountants face rising demand for strategic advice

The role of accountants in the UK is transforming as businesses increasingly seek comprehensive financial guidance beyond traditional bookkeeping services.

A recent study by Modulr, a platform specialising in embedded payments, indicates that 75% of accounting practices report a rising demand for advisory services in investment and business strategy. Forecasting has seen a similar increase at 73%, while accounts payable and receivable have shifted to high priority for 66% of clients, reflecting changing business expectations.

Despite this evolving role, accountants are challenged by ongoing inefficiencies in payment processes, which consume significant time and resources. Such inefficiencies impede productivity and curtail the agility required to navigate complex regulatory environments and the demands of a globalised economy.

According to the research, 46% of accountants spend over three hours weekly reconciling accounts and managing regulatory compliance tasks. This workload is compounded by the manual effort required for data entry (45%), communication with clients about payment statuses (46%), and handling payments to HMRC (46%). These manual processes and disparate systems contribute to unnecessary delays, errors, and increased compliance risks.

Jakub Zmuda, Director of Strategy at Modulr, said, "It's clear that the role of the accountant has, and still is, undergoing a transformation. What clients are asking for now is a far cry from their needs ten years ago. Businesses are now seeking trusted advisors who can guide their financial strategy, predict future challenges and help navigate complex business decisions."

Zmuda added that the evolution of accountancy represents both a challenge and an opportunity: "Whilst this can be considered as daunting for some, it should be seen as a real opportunity for accountants to start to play a more central role in their clients' success and open the door to higher value work. The time is now to embrace rapidly advancing technologies and optimise core operational areas of the accounting practice."

Most accountants anticipate further growth in key areas such as tax, accounts receivable, and payroll management. 69%, 69%, and 67% expect these areas to expand over the next five years. Those unprepared for this shift may face challenges as the profession adapts and expands.

Modulr's findings come as the Spring Budget approaches, highlighting the need for accountants to adapt promptly to meet the evolving demands of businesses. The study underscores the importance for accountants to leverage technology to maximise efficiency and reduce time spent on administrative tasks, enhancing their capacity to provide strategic financial insight.

Censuswide, on behalf of Modulr, surveyed 250 senior accountants, partners, directors, and senior bookkeepers within UK accounting firms, revealing significant insights into the shifting landscape of accounting practices.