UK firms face huge blows to growth amid ongoing skills shortage

UK firms face huge blows to growth amid ongoing skills shortage

By Janita Kapoor

As we emerge from the COVID-19 pandemic, the UK economy appears to be regaining strength and moving towards better stability. With this positive stride it would be in the thoughts of accounting firms to begin bolstering their workforce by recruiting from the available resources and talent pool. However, accounting firms have been hit hard by labour shortages, with many forced to turn work away due to a lack of staff. Nearly half (49%) of UK accountancy firms are facing huge blows to their growth amid an ongoing skills shortage and this skills gap is a now a major and well-publicised crisis. Competition for candidates in finance and accounting is fierce – especially those with tech skills. Skills shortage drives demand for jobs, finds Hays | Accountancy Daily

The concern with a workforce skills shortage is something that is worrying businesses all over the world, and for good reason. Companies who can’t fill positions with skilled workers will be left with stretched resources that result in damaging implications for both the short-term and long-term outlook of the business. Until the supply and staff shortage issues are overcome, business owners across the UK could continue to be hit by negative financial implications.

Did you know, however, there are ways to address the skills shortage in your industry?

Of course, there is no magic wand that you can wave to create more capacity at your accounting firm suddenly. The only way for resolving staffing issues and ensuring the firm’s growth is through careful capacity planning and strategic resourcing.

Outsourcing your accounting services can be an ideal solution for supplementing your team and scaling up the business. Apart from increased capacity, efficiency, and profitability, you’re able to employ highly skilled professionals who are trained in the latest tech, can automate and enhance your accountancy delivery, leaving you and your team to focus on strategic high-margin work.

Having said that, choosing the right outsourcing partner is crucial to meeting your businesses objectives and not every outsourcer can deliver quality service. Therefore, there are only a select few players in the market who are successful at outsourcing.

When selecting the right partner, you need to ask the following key questions:

  1. Are they UK-based service providers?
  2. Do they have UK representatives you can talk to or escalate matters to in case things don’t go to plan?
  3. Have they got the right experience to be able to provide the service? Are they technologically well-versed with UK accounting software?
  4. Have they got a UK-qualified, UK-trained management team?
  5. Have they got professional indemnity and cyber insurance cover in place?
  6. Do they offer a trial period to test their services?
  7. Do they have a job tracker system to monitor progress of work?
  8. Can you meet them in the UK at short notice?
  9. What is their experience dealing with UK firms and can they give references?
  10. Do you genuinely think they can help you grow your business?

Outsourcing is a long-term relationship, so choosing the right partner is crucial to meeting your businesses objectives. The key advice is to remember to pick an experienced provider that suits your requirements and once you start delivering better-quality work to more clients, more quickly and efficiently, you’ll know it’s the right fit for you.

At dot, we have helped many accountancy clients, so we feel we can offer some valuable advice on what to look out for when it comes to adopting an outsourcing model. Understanding how to use outsourcing can help you reach your business goals, create amazing teams and let you play a valuable role in your client’s business.

Our co-founder Arun Ravindranathan has written an eBook that explains the concept of outsourcing & technology and how it can work for accountancy firms & SME’s. Click to get your copy now https://thedothq.com/ebook/

UK firms face huge blows to growth amid ongoing skills shortage – Accounting Insight News (accountex.co.uk)