The UK accounting industry is experiencing a severe staffing crisis, with regional talent shortages jeopardising the industry’s growth potential. According to the FPI (Financial Professionals Index), firms in Manchester and Nottingham have the smallest talent pool from which to recruit. This crisis is not limited to these cities, as the UK as a whole is struggling to attract and retain accounting professionals. In this article, we will explore the solutions available to UK accounting firms to deal with this shortage.
Strategies for UK Accounting Firms
To navigate the staffing shortage, UK accounting firms can consider the following strategies:
Remote staffing: By hiring remote staff, accounting firms can access a broader and diverse pool of talent and increase their flexibility in managing workload. This approach helps accounting firms to have control over work assignments, as attention to every detail is important in the accounting industry.
Outsourcing: Outsourcing specific tasks such as bookkeeping, and accounting can help accounting firms streamline processes, minimise costs and improve efficiency. This approach can be particularly effective in managing staff holidays, maternity leaves, and seasonal workloads.
Upskilling staff: Another strategy is to upskill staff members to take on more responsibilities. This strategy ensures that the firm has enough employees to distribute or split the workload effectively. Upskilling can help improve employee morale, as regular accounting tasks can be rather monotonous.
Temporary staff: Temporary staff is another quick solution to short-term workload issues. This can be an excellent remedy for firms that have to deal with fluctuating workload capacity based on seasonal, or project-based work.
Creating a sustainable talent pipeline: Accounting firms can develop a sustainable pipeline of talent by investing in training and development programs for existing staff or new apprentices. This can improve the staff retention rate, but also the firm’s capacity to handle the workload.
Why is remote staffing gaining popularity amongst UK practices?
Remote staffing, also known as outstaffing, involves hiring an external team of remote employees that work exclusively for a firm. In essence, they live and work in a different location, often in a different country where the salary costs are comparatively low.
Remote staffing is currently the most popular choice amongst UK accounting firms to counter the staff shortage. It not only gives the cost-benefit, but also provides the much-needed flexibility that the accounting firms crave especially in the fluctuating post-Brexit, and COVID business environment.
These remote staff members can be quickly integrated into their operations, culture, and policies, and will be managed directly by the firm. The only element that differs between in-house employees and remote staff is that the latter works outside the firm’s premises, often from home or a remote office.
Acceptance of remote staffing
The COVID-19 pandemic caused a rapid increase in the growth of remote work. According to the Office for National Statistics, in 2023, 44% of UK employees worked remotely. This is estimated to further rise by 25% in 2025.
UK accounting practices are finally waking up to the new reality. As they also struggle to find the right local talent, the remote staffing model is rapidly gaining acceptance even from the most traditional firms.
Remote staffing models also offer accounting firms the much-needed flexibility to form a dedicated team and assign specific responsibilities, allowing for greater control over delivery and timelines.
Remote Staffing vs Outsourcing
| Aspect | Remote Staffing | Outsourcing |
| Employment Relationship | The remote accounting staff works exclusively for the firm. (Staff may be hired and work under a remote staff supplier company) | Outsource tasks to an offshore accounting outsourcing firm |
| Control | The firm keeps direct control over remote staff | The firm delegates work and oversees the outsourcing firm. |
| Flexibility | Provides flexibility in staff management and task distribution. | Offers flexibility in task assignment and completion. |
| Cost Structure | Typically involves fixed monthly fees for remote staff. | Billing according to the number of hours worked on every task. |
| Integration | Remote staff members fit easily into the firm’s operations. | Outsourcing firms operate independently from the firm |
There are many accounting outsourcing suppliers specifically catering to UK accounting firms. Most accounting outsourcing companies are based out of India and few operate from the Philippines or Sri Lanka. There are some local outsourcing suppliers too but they don’t offer the cost benefit of overseas accounting outsourcing providers.
Integra Global Solutions is a premier UK accounting outsourcing firm and they offer flexibility in both remote staffing and accounting outsourcing services. They have been established for nearly 20 years with overseas offices in India and a local support centre in Ruislip, London. With Integra, you get both remote staffing and outsourcing options, and can even mix and match both solutions depending on your requirements. Their client list includes 100’s of UK accounting firms, from small to large.
In conclusion, the UK accounting industry is currently experiencing a severe staffing crisis, and firms must start exploring new and innovative ways to address the shortage. Remote staffing and outsourcing represent two of the viable alternatives that may enable accounting firms to expand their talent pool, gain more flexibility in capacity utilisation, and enhance overall performance. By considering these strategies, UK accounting firms can not only survive but also thrive in the face of this crisis.
