The accountancy industry is at a crossroads. With rapid technological advancements, accountants are balancing the demand for more efficient compliance and an increased emphasis on value-added advisory services.

Meeting the Challenges

Inflation and the unstable economic outlook are also having a serious impact on all sectors. The UK has been through a tumultuous few years, and the combined effects of Brexit, the COVID-19 pandemic, and high inflation are only gradually receding. Growth remains meagre across the economy as a whole.

At the same time, the global geopolitical situation remains unpredictable, threatening to upset the applecart again at any moment. Alongside this, the possibility of high trade tariffs coming into force in the US in 2025 brings a whole host of conceivable challenges, including spiralling goods costs suppressing growth across a host of industries, with knock-on effects across the services sector. All of this impacts accountants directly, as businesses lean on them for guidance through economic uncertainty.

But it’s not all doom and gloom. Innovations  like automation and AI can help accountants navigate through the volatility and focus on the higher value tasks. But we know that this isn’t an easy one and done. Firms purchasing fintech technology are on an education journey, requiring a cultural shift to overcome resistance and replace fear with an understanding of how machine learning and analytics drive growth, not replace staff. As firms embrace this shift, 2025 could see accountancy transformed into even more of a more strategic, data-led profession. 

As a result, 2025 is set to be a year of rapid change, of challenge and opportunity. Two key areas will continue to impact the sector – inflation, and further consolidation through mergers and acquisitions (M&A). Let’s explore in more detail how these two issues will shape 2025 for accountancy firms and their clients, as well as looking at the way professionals’ roles are likely to evolve in response.

Automation Will Transform the Way Accountants Respond to Inflation

Inflation remains a significant dynamic that accountancy firms must navigate carefully in 2025. It impacts everything – from wages and employee culture through to supply costs and cash flow. As inflation stabilises, it’s crucial for accountancy firms to reflect on how they handled recent high inflation periods, and adapt their strategies for a lower-inflation environment.

Using technology and data insights can help firms remain competitive and navigate this new economic phase. A data-led approach is crucial given the complexity of the factors that feed into the inflationary landscape, and the myriad ways it can affect business. Reacting based on intuition won’t cut it. Accountants need to base their strategic decisions on insights derived from rich data, in as close to real time as possible.

This approach has two critical advantages. First, it allows firms to act proactively, leveraging advanced analytics to anticipate trends and outcomes before they occur.. Second, it allows for greater agility, enabling firms  to gain deeper insights  into how  rapid market changes are affecting  their business, and to adjust their strategies swiftly in response.

Mergers & Acquisitions Will Ramp Up

The accounting sector is set for more consolidation as firms face high numbers of partner retirements, due to an ageing workforce. This consolidation is an opportunity for both large and specialised practices – if they can pivot in the right way. 

Larger firms have the potential to dominate, leveraging scale to process work more efficiently across different markets. On the opposite end of the scale, smaller, niche firms can shift to offer highly personalised services. It’s the middle ground that’s at risk. Mid-sized firms that don’t evolve will either be absorbed by larger entities or see talent move towards more specialised practices. 

Private equity is also playing a part in this M&A trend. Investors see opportunities to modernise firms and extract value through efficiency gains and technology adoption. Fintech tools, such as cloud-based financial reporting and compliance platforms, present a low-risk avenue to drive long-term value for pension funds and other stakeholders, especially during the current volatile environment. These trends signal an era of structural evolution within the sector, driven by innovation and investment.

Accountants Will Grow Their Strategic Role

Finally, amid all this change, accountants will need to redefine their role. By automating routine tasks, accountants can reclaim valuable time to focus on higher-value work, such as compliance and providing fiscal and legal advisory services. Firms that adapt to this shift will thrive, while those clinging to traditional models risk losing relevance or being absorbed by larger, more agile competitors.

In 2025, the widening availability of next-gen, AI-enabled technology will make success dependent on firms that fully  integrate their operations. These firms will harness  insights and expertise from all areas of the business  to inform decision-making. Accountants have a crucial role to play in providing these insights based on the financial status of their clients – a role they can only play if they’re freed up from repetitive, low-value tasks. Technology holds the key to the evolution of the sector – 2025 is the time to take that next step.

About Silverfin

It all started with two founders and a big idea… to create an innovate cloud platform to make accountants more successful.​ These are exciting times for accountants.

Technology has changed bookkeeping forever. While bookkeeping has been transformed, the day-to-day life of the accountant has yet to see the same change. Until now.

Silverfin was founded by an accountant frustrated by how he had to work and a software architect looking for a tough problem the cloud could crack. 

So they turned their thinking to how data, and the cloud, could make life easier for accountants, make their businesses better, and at the same time unlock new opportunities for revenue streams from value-added client advisory services.

We give accountants the technology and tools they need to be more successful. For themselves. For their clients. We improve the efficiency, competitiveness and profitability of compliance and reporting services. We make this work faster, easier and better. Plus we power the development and delivery of new advisory services.