The UK accountancy sector is grappling with a talent shortage, with outdated stereotypes contributing to declining interest in the profession.

A survey of 337 accountants and bookkeeping professionals by  accounting software provider FreeAgent found that 57% of respondents identified negative stereotypes as a key deterrent for individuals considering the profession. Other challenges include high education costs (47%) and the lengthy qualification process (42%).

Just under 38 percent of respondents said that a lack of understanding about the skills and diverse opportunities available in accountancy is a factor which further compounds the talent crisis. Limited access to apprenticeships or internships, cited by just under 29%, is also a barrier.

Diversity, Equity, and Inclusion

Discrimination and bias remain significant challenges within the accountancy profession. A fifth (20.9%) of respondents reported experiencing bias based on factors such as gender, race, ethnicity, or sexual orientation.

Addressing diversity, equity, and inclusion (DEI) in the workplace is seen as crucial for the future of the sector. Respondents called for greater flexibility in working arrangements (41.9%), increased pay and promotion transparency (38.2%), and improved hiring practices (33.9%). Other measures included mentorship and coaching (32%) and enhanced parental leave policies (26.7%).

“Addressing the decline in accountancy enrollments is not just about attracting new talent; it’s also about fostering a diverse and inclusive workforce,” said Rachel Harris, founder of Accountant_she. “To create a more equitable profession, we must tackle the misconceptions that deter individuals from pursuing a career in accountancy, as well as the systemic barriers that hinder their advancement once they enter the field.

“Many people are unaware of the diverse, rewarding careers within accountancy, and misconceptions often discourage potential students. Ensuring the industry’s health and sustainability requires proactive reforms to make accountancy more accessible and attractive.”

Technological Knowledge for Future Success

As the accountancy sector evolves, so too do the skills required for success. Over the next three to five years, 69.3 percent of respondents expect greater technological expertise to become essential, particularly in working with new software and processes. A large number (61.3%) emphasised the need to understand AI and smart data technology.

Tax expertise will also be in higher demand, with 57.1 percent of respondents citing its importance as legislative changes take effect. Furthermore, 53.1 percent noted the need for accountants to provide broader business advice to clients, while 34 percent highlighted the importance of developing stronger interpersonal skills as client relationships become more central to the role.

Roan Lavery, CEO and co-founder of FreeAgent, said, “Our research not only shows how accountants feel about the decline in new talent within the industry and how this will have wider implications within the economy, but also how they see accountancy evolving as a career in the coming years.

“It’s vital that the next generation of accountancy professionals are properly supported in their career development and have the opportunity to learn important new skills. Without this, many small businesses that rely on skilled financial professionals for guidance on compliance, planning, and growth will find it difficult to thrive in the years ahead.”