How businesses are addressing the skills gap

With over two-thirds of employers dealing with skills shortages, we spoke to accountants and bookkeepers about their difficulties, and what they’re doing about them.

The AAT’s Filling the Gap campaign highlights the growing skills gap in the accountancy and finance sector. Chapter One, published in October last year, found that 78% of employers are facing a skills gap, 84% are experiencing challenges when it comes to upskilling employees, and a third have struggled to recruit during the past year. This creates barriers to business growth, means reduced productivity and puts extra pressure on existing staff.

We asked accountancy business owners how the skills shortage is impacting them, how they are addressing the problem, and what support is needed from government.

We need people who are prepared to pick up the phone and talk to clients

Alex Brearley, Director, Brearley & Co Accountants

Interpersonal skills can sometimes be lacking, with a noticeable reluctance among some individuals to engage in direct conversations, instead favouring email communication. Our business is increasingly focused on providing advisory services, where building strong client relationships is essential. A lack of interpersonal skills can make this more challenging as effective communication and trust are key to delivering value in this area.We’ve placed a greater emphasis on recruiting through apprenticeship schemes, which allows us to develop both technical and interpersonal skills from an early stage.

The overall cost of employment continues to put pressure on productivity. As a result, there can be a tendency to prioritise fee-earning work that delivers short-term returns, sometimes at the expense of longer-term training and development. Greater recognition of the time and investment required to develop skills would be beneficial, particularly when considering National Minimum Wage policy. It would also be helpful to see broader training incorporated into apprenticeship schemes, beyond purely industry-specific qualifications, to better equip individuals with transferable skills.

Business is increasingly focused on advisory services, so the skills to build strong client relationships are essential.

There should be more focus on digital skills in training

Rachel Harris FMAAT, founder, strive^x

We are seeing a growing shortfall in digital capability. As accounting workflows become more cloud-based and more influenced by automation and AI, new hires need to be comfortable using software, working with data and adapting quickly to new systems. They don’t necessarily need to have previous knowledge of a wide range of different systems, but the core knowledge should be there so the transition between different software should be an easier jump than we’re seeing. Also, skills in AI, automation, cybersecurity and data analysis are high priority and it would be great to see this incorporated in some way into the curriculum. 

From a hiring perspective, we maintain a waiting list of potential candidates, which allows us to continuously review individuals over time rather than hiring reactively. This means we can not only assess technical capability and exam progress, but also the behaviours and character traits we value, such as a track record of going above and beyond and a clear commitment to excellence.

We would also like stronger support for widening access into the profession. The sector should not be drawing from a narrow pool when there are viable routes through apprenticeships, local colleges, career changers, and young people who are not currently seeing accounting as a realistic or attractive path. Government, employers and professional bodies need to do more together to improve careers advice, promote vocational routes and challenge outdated perceptions of the profession.

As accounting workflows become more cloud-based and more influenced by automation and AI, new hires need to be comfortable using software.

Training needs to reflect real world scenarios

Alex King BFP, ACA, founder, Generation Money

The main gaps I see are commercial judgement, communication, and practical technology skills. With increasing use of AI and automations, the focus is less on how to produce work and more on stepping back to explain what the numbers actually mean for a business or client. The real value in the profession is moving towards judgement, interpretation and trusted advice. Technical training still matters, but staff also need more exposure to real commercial situations, client communication and problem-solving. 

I’m also placing much greater focus on AI skills in a practical way with real world situations. Teams need to understand where AI can genuinely improve efficiency, where the risks are, and why human review still matters. There’s a lack of clarity around AI. Many employers know they need to address it, but they are still working out which tools are appropriate, what good training looks like, and how to balance efficiency with risk, confidentiality and quality control.

I would like to see more practical support for digital and AI upskilling, especially for small and medium-sized firms. That could mean targeted funding, tax relief for training, or more accessible programmes focused on real workplace scenarios rather than theory alone.

Focus is shifting towards explaining what the numbers actually mean, and being aware of risks around AI, which makes good judgement essential.

The government should be investing in apprenticeships

Vipul Sheth, MD of Advancetrack

Apprenticeships have historically played an important role in helping firms bring new talent into the sector, which is why I believe the changes to Level 7 funding have acted as a secondary barrier for those looking to enter the profession. At a time when the industry is already dealing with a shortage of qualified accountants, restricting access to these routes risks narrowing the pipeline even further.

Looking ahead, the profession needs a stronger pipeline of talent if it’s going to meet the needs of businesses across the economy. Continued investment in training and professional development will be essential, but there is also a role for the government in ensuring accountancy remains an accessible career path. Targeted support for apprenticeships in sectors facing clear talent shortages would be a positive step, particularly alongside the introduction of new vocational routes like V-levels.

Investing in apprenticeships is key to expanding the talent pipeline.

Caroline Roberts Journalist.