Three ways to close the finance skills gap in UK accounting practices

What is an accountant?

According to ChatGPT, they are the following:

“[Accountants are] highly detail-oriented and analytical professionals, adept at managing financial records with precision and integrity.

 They possess robust problem-solving skills and are proficient in adapting to new technologies and regulatory changes to provide accurate financial reporting and strategic advice.

 Additionally, they are effective communicators, able to explain complex financial concepts clearly to stakeholders across various backgrounds.”

And yet, in reality, the role of the accountant has stretched beyond belief.

Amidst a shifting terrain of rapid technological advancements, stagnant economies, and evolving regulatory frameworks, a significant skills gap has emerged, posing challenges for accounting practices and corporate finance departments alike.

This deficit in specialised expertise threatens to undermine operational efficiencies and hinder strategic growth objectives. As a result, the demand for professionals proficient in areas such as data analytics, advanced financial modelling, and sustainability accounting has skyrocketed.

These emerging skill sets are now a must-have for organisations seeking to gain a competitive edge through data-driven decision-making, robust financial projections, and comprehensive environmental, social, and governance (ESG) reporting.

“Just as accountancy firms are forward-thinking in their work processes and use of technologies, recruitment professionals also need to have a forward-thinking approach, and consider what skills the accountants of the future will need to excel in their day-to-day roles,” says Philip Edwards, Finance Director for MHR.

To bridge this widening skills chasm, UK accounting firms should consider adopting a multi-faceted approach that addresses both immediate staffing needs and long-term talent development strategies.

Here are three crucial steps to consider:

1. Strategic Education Partnerships

Forging strategic alliances with universities and professional training bodies is a great way to tailor educational programs that align with the industry’s evolving demands.

By collaborating closely with academic institutions, accounting firms can play an active role in shaping curricula, ensuring that graduates and upskilled professionals acquire the specific competencies required to thrive in modern finance roles.

Such partnerships facilitate a steady pipeline of job-ready candidates and foster a culture of continuous learning within the profession.

2. Upskilling Existing Talent

While attracting new talent is crucial, investing in the upskilling of existing professionals is equally vital. Accounting firms should prioritise implementing robust in-house training programs that empower employees to enhance their skills continuously.

These programs could encompass a range of modalities, including classroom-based instruction, online courses, mentorship programs, and hands-on practical exercises.

“Learning and development plays a crucial role in this to upskill existing talent, which can have secondary benefits through improving employee morale and boosting retention,” says Edwards.

Additionally, firms should actively encourage and support their employees’ pursuit of continuous professional development (CPD) opportunities.

By fostering an environment that values lifelong learning, organisations can cultivate a workforce that remains agile and adaptable, equipped to navigate the ever-changing business landscape.

3. Leveraging Technology

As the finance industry grapples with skills shortages, the strategic integration of advanced technologies can serve as a force multiplier, enhancing productivity and compensating for talent gaps.

AI and machine learning tools have the potential to automate routine tasks, freeing up human resources to focus on higher-value activities that demand critical thinking and strategic decision-making.

“The proliferation of AI and technology have been a game-changer for the accounting industry, with growing volumes of increasingly sophisticated data creating opportunities for even more in-depth analysis,” says Edwards.

“However, the full potential of these advancements can only be unlocked by employees with the correct skill sets.”

Moreover, these technologies can augment human capabilities by streamlining complex financial analyses, identifying patterns and insights from vast data sets, and optimising forecasting models.

By embracing these technological innovations, accounting firms can not only alleviate immediate staffing pressures but also position themselves as industry leaders in the digital transformation of finance.

Ensuring you have the best people

The finance skills gap poses a formidable challenge for UK accounting practices, but one that can be effectively addressed through a combination of strategic initiatives.

By fostering collaborations with educational institutions, investing in comprehensive upskilling programs, and judiciously leveraging cutting-edge technologies, firms can cultivate a future-ready workforce equipped to navigate the complexities of the modern financial landscape.

To discover more on this topic, click here.