Accountex North offered a useful temperature check on where accountants stand with Making Tax Digital and how firms should adapt. Accountancy Age spoke with Eva Mrazikova and Steve Cox from IRIS to understand the reality on the ground and the moves that matter now.

What MTD readiness really looks like

Mrazikova did not sugar coat it. She said that just under 10 percent feel ready for MTD and that almost three quarters are wishing they could get more information through publicly available channels. She described the moment as a brewing storm and the biggest revolution in the way they report about their business. For many sole traders the change feels unfamiliar rather than optional. As she put it, “Nobody becomes a builder or electrician to spend their time on tax returns. That is where the accountant’s role becomes critical.”

Education first

Confusion often starts with the word digital. Mrazikova said a lot of them do not fully understand what digital means and that some think they are digital but they are not fully compliant with what is required. She urged firms to make MTD tangible – demonstrate a first upload, show the outcome, and turn uncertainty into habit.

Technology that removes friction

Asked how to bridge the gap she was firm. A huge role. It is the only way forward. Her view is that tech should minimise the negative impact of compliance and make it easier faster and more accessible. On IRIS itself she said all of their solutions are already MTD compliant and listed on the HMRC website, and highlighted work with Microsoft on AI that will speed up tax returns automate manual work and provide insights such as anomaly detection. At a practical level, that means less typing and faster answers clients can rely on.

The commercial pinch

Quarterly submissions change the shape of workload. Cox noted that MTD introduces quarterly filings which spreads the work but also creates new peaks and that this increases costs and requires better workforce planning. He added at IRIS they have built MTD functionality into solutions without adding extra costs and pointed to options for sole traders who need structure without complexity so firms can keep compliance affordable while staying digital from day one.

What is reshaping firms

Cox has tracked the profession’s cycles for years. He said clients want them to be trusted advisors and that demand accelerated during COVID when clients leaned on accountants for wider guidance. Expectations are now different. Clients want real time answers whether that is the status of a return or the dividend they can draw.

Talent patterns have shifted as well. Firms are struggling to hire and retain staff and many new accountants want to run their own businesses rather than buy into partnership models. On technology he captured the mindset change neatly how do I save time and be more productive. These forces push firms toward clearer services and a culture that prizes time saved.

Skills that matter next

As automation takes on routine tasks the definition of great work moves. Mrazikova said the definition of a good accountant will evolve and stressed the need to sit with clients interpret numbers and have strategic conversations. She also underlined professional judgement. Accountants should validate AI output with common sense and professional bodies will have to adjust their training curricula so new entrants learn how to review and explain machine output with confidence.

The next few years

Cox expects steady movement to digital records and online tooling. He said adoption of cloud bookkeeping could rise from about a quarter to around half over the next few years and that AI will become second nature in firms which removes mundane tasks and frees time for client relationships. He also expects structural change. Fewer young accountants want to buy into partnerships so firms will look more like structured businesses than traditional practices.

Scale already reflects this direction. Cox said IRIS already serve over 24,000 accountancy firms with 10,000 using their cloud-based Elements platform and predicted strong growth as firms modernise their stacks.

What to do now

• Segment clients by MTD readiness and build two journeys. One for those who can self serve with light support. One for those who need a guided start.
• Standardise capture of sales and expenses. Use rules and bank feeds to cut manual effort.
• Set a simple 90 rhythm that maps to the new quarterly cadence.

Inside the firm remove steps from one painful process and publish a clear weekly view of who does what each quarter. The time you free up becomes advisory time that clients will value.

MTD triggers new expectations from clients, creates fresh workload patterns, and shifts the skills that win work. Firms that educate early digitise deeply and speak plainly will get ahead while AI handles the heavy lifting in the background.