Upskilling to address the skills gap

Recruitment is only part of the puzzle. Accountants explain the training and qualifications they’re rolling out.

The accountancy sector has been struggling with a skills gap for many years, made worse by the knock-on effects of the Covid-19 pandemic and increased competition for talent in a shrinking talent pool. It’s not an issue unique to accountancy, but as a sector, it’s certainly one of the most affected.

Experienced financial professionals are retiring faster than young professionals are being recruited. Indeed, there have been warnings from industry analysts that the numbers of accountancy students and newly qualified accountants are in decline.

Research from AdvanceTrack in 2024, for example, revealed that the number of students enrolled on accountancy courses declined by 56% between 2010 and 2023. Meanwhile, Skills England research revealed that accountants and finance technicians are one of ten roles which are very much in demand.

More recently, there’s been an increased need for specialist skills in response to technological changes such as AI and automation, but firms are struggling to find the right people with these capabilities.

Addressing the talent shortage plaguing the sector can’t be easily solved with recruitment drives, even for firms that are in a position to hire.

Upskilling provides an answer. We spoke to several accountancy firms that are doing just this to find out how they’re going about it.

We’re upskilling through formal qualifications, cross-skilling and focusing on technical competencies

Rachael Chadwick-Harrison MAAT, Chartered Accountant and MD, Chadwick Accountants 

The finance sector is undergoing rapid change, so there’s an increased demand for a technically competent, adaptable, tech-savvy and forward-thinking workforce. One of the most effective ways to tackle the skills shortage is through meaningful and sustained upskilling. Here’s how:

• Introduce formal qualifications: Introducing formal qualifications for staff who may be stuck in lower-level roles can open doors, provide a clear career pathway, and equip them with the credentials needed to move forward.
• Focus on technical competencies and AI: advanced Excel skills, Microsoft Power BI and other data visualisation tools is now integral to modern financial reporting and analysis. The ability to harness data effectively and actively embrace AI is becoming a core expectation in many roles. 

In my own practice, upskilling and staff development are embedded in our culture. In particular:

• We run in-house tax workshops, delving into complex real-life tax cases. These sessions help staff transition from technical doers to informed business and tax advisers.
• We deliver intermediate tax training to support our bookkeepers in expanding their understanding of company and personal tax.
• We’ve developed a comprehensive internal VAT guide, complete with a tailored exam, ensuring all team members are equipped with a robust understanding of diverse VAT rules and scenarios.
• Every team member is enrolled in a professional training programme – including AAT, CIPP, CIMA and ACCA.
• We focus on cross-skilling. By encouraging staff to build knowledge across multiple disciplines, we’re creating agile, well-rounded professionals who are confident handling a variety of client needs.

Verdict: Upskilling through formal qualifications, technical or new technology training to empower teams and create a more resilient industry.

We upskill by providing a continuous learning environment

Caroline Carter FMAAT, Director, Carter Clear Accounting

Upskilling is key to tackling the current talent shortage because it enables us to develop the capabilities the team need from within, rather than relying solely on recruitment in a highly competitive market.

We are continuously upskilling our small team of five by:

• Bringing the apprenticeship framework to life through shadowing, peer support and hands-on experience with real clients.
• Investing in external training such as social media skills or effective networking.
• Leading by example to teach ‘soft’* skills such as ethics, leadership, integrity and being proactive and embedding these values into our culture. To do this, our staff are client-facing from day one.

In my view, the real skills gap isn’t about technical know-how, it’s the so-called ‘soft’, interpersonal skills that are often missed, especially in larger firms. In smaller firms like ours, we have the opportunity to address the skills shortage early by creating a workplace culture that values development, interaction, and real-world application from the outset.

Upskilling is a mindset shift and creating an environment where continuous learning isn’t a ‘tick box’ exercise of technical stuff, but is driven by awareness of skills gaps and the desire to learn.

Verdict: We’re upskilling by creating a continuous learning environment which goes beyond the tick-box.

*At AAT, we think ‘power skills’ is a more fitting name for these.

Introduce intergenerational mentoring initiatives

Martin Tregonning, Chartered Accountant and Founder, Tregonning & Co Chartered Accountants

There is essentially a two-way knowledge gap between Gen X and Gen Z and the need for what we call intergenerational mentoring.

A large portion of experienced accountants are not digitally engaged. We are at risk of losing all that experience and knowledge in the profession because they are not keeping up and are liable to bow out.

The other end of the issue is that younger accountants are very digitally aware and good with social media, but they lack experience and some of the skills. Sadly, many of the more experienced accountants don’t see it as a priority to either mentor or encourage them.

The arguments on this are often partisan with either side viewing the other pejoratively as the “tik-tok” generation or the “old fogies”. But both need to learn – neither group has what it takes to make a success of things in the new economy, and so we need to develop this idea of collaborative/two way/intergenerational mentoring.

I heard an event speaker recently who said that the key to surviving the next few years of economic uncertainty is to invest for resiliance and growth. In terms of addressing the skills gap, that resonates.

As a firm, we are actively investing in training while building in resilience such as having more than one person capable of doing the one job so if one person exits, that doesn’t create a knowledge loss.

Verdict: Introduce ‘intergenerational mentoring’ initiatives to address the knowledge gap.

Annie Makoff is a freelance journalist and editor.