The Future of Accounting: What Accountancy Practices Need to Know for 2026
08 Jul, 20251-2 minutes
In this blog, you will learn:
- About the future of accounting.
- What accountancy practices need to know for 2026.
- More about our accountancy recruitment services to help you recruit for roles for your practice.
The future of accounting can feel uncertain at times, but it also represents new possibilities and the chance for accountancy practices to evolve. In just a few years, the accountancy sector has changed significantly with the rise in technology and reliance on Artificial Intelligence and it can be difficult to know what to expect and how to adapt.
In 2026 and beyond, accountancy practices can anticipate continued growth, evolution and innovation. To stay ahead, accountancy practices must be proactive, adaptable and forward-thinking.
What accountancy practices need to know for 2026
What accountancy practices need to be aware of in 2026:
- The digitalisation of tax.
- Increased reliance on AI and technology.
- The rise of outsourcing.
- ESC reporting is becoming a business standard.
- Evolving workplace expectations.
The digitalisation of tax
According to a survey by Accountex, 81.7% of Accountants view Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) as their biggest challenge in 2025 and nearly 79.08% said it’s their greatest opportunity.
MTD for Income Tax is part of a government initiative intended to help individuals and businesses get their tax right, with mandatory use of digital record keeping and MTD compatible software. With the rollout set to begin on 6th April 2026, Accountants and accountancy practices are actively seeking practical solutions and building their knowledge to ensure their clients are prepared.
Director of Tax, Robyn Milstead CTA, said, “Making Tax Digital for Income Tax Self Assessment is the biggest topic for 2026 and accountancy practices need to know not only how they want to approach the subject but how it will affect their clients.”
Practices with income tax clients that fall under the scope of MTD for Income Tax need to start adapting their systems, workflows and client communications now to ensure a smooth transition. Robyn added, “Making sure you have a clear plan ahead of time will make a huge difference.”
As MTD reshapes the way tax information is recorded and submitted, both Accountants and their clients will see a shift in roles and responsibilities, meaning there is a need for strong collaboration and early preparation.
Increased reliance on AI and technology
As reliance on technology and artificial intelligence grows, accountancy practices can expect ongoing innovation and a deeper integration of AI in their work. These technologies will increasingly automate routine and time-consuming tasks, allowing Accountants to focus on higher value work. Cloud-based systems, predictive analytics and digital tools will also play a key role in streamlining processes, improving operational efficiency and enhancing client service.
As much as utilising technology and leveraging AI tools is beneficial and increasingly common, one size doesn’t fit all and the human as well as personal element that comes with accounting is irreplaceable.
Director of Tax, Robyn Milstead CTA said, “I think the future of accountancy will depend on being ‘people’ in the face of an AI world.” She added that accountancy practices should focus on, “Utilising technology in a way that doesn’t cut out the personalities and human connections.”
In 2026, building trust with clients, offering personal interaction where needed and maintaining ethical standards remain essential for accounting professionals and will continue to set great practices apart in an increasingly digital world.
The rise of outsourcing
Outsourcing and freelance work in accountancy have seen significant growth in recent years, becoming a key trend that could potentially shift the future of the accounting industry. According to Accountancy Age and research by AdvanceTrack, global spend on accounting services has risen by 41% with a 20% surge in interest over the last five years.
More and more accountancy practices are outsourcing specific tasks such as bookkeeping, payroll and tax preparation to qualified professionals without having to commit to permanent hires.
Businesses and practices are outsourcing or freelancing Accountants for several reasons including to boost efficiency, increase expertise and allow employees time to focus on higher value tasks and client relationships.
Vipul Sheth, Managing Director of AdvanceTrack predicts a future where over 50% of companies will outsource some or all of their accounting tasks by 2034.
For accountancy practices, embracing outsourcing strategies could be beneficial to staying competitive and responding to the changing expectations of clients in an ever evolving industry.
ESG reporting is becoming a business standard
It’s not just efficiency, technology and outsourcing that practices need to know about in 2026, Environmental, Social and Governance (ESG) reporting is fast becoming a necessity for how businesses are measured, regulated and valued.
The UK Corporate Governance Code was updated in January 2025 to include ESG-related provisions, which now apply fully to financial years beginning in 2026. All mid-sized and large companies meeting the criteria include businesses with over 250 employees or a turnover of £36 million or more, and they must start reporting ESG data for the 2025 financial year, with reports due in 2026.
Small or medium sized listed enterprises can choose to report or defer their ESG reporting regulations until 2027-2028, giving them more time to prepare and become familiar with the requirements.
It’s important that practices understand emerging ESG frameworks and stay updated on global compliance trends to be better positioned to grow and serve forward-thinking clients.
With values like sustainability, ethics and diversity playing a growing role in the decisions of Gen Z Accountants and clients, it’s essential that accountancy practices consider having ESG aware recruitment strategies and ethical leadership to support their brand reputation.
It’s possible clients may turn to their Accountants for support with ESG data collection, reporting and advice and it’s essential for practices to offer support and insight.
Evolving workplace expectations
In 2026, shifting workforce dynamics will continue to influence how accountancy practices attract talent and develop their strategies to be more efficient, adaptable and meet employee expectations.
With the demand for skilled professionals still high, the skills gap is predicted to continue and potentially widen in the near future. The need for specific skill sets along with expectations and continuous development is reshaping how accountancy practices operate and adapt in a changing profession.
Workplace expectations and values continue to evolve with new trends, shifting priorities and as new generations enter the profession. Over time, preferences such as remote working and flexibility have become more popular and are likely to remain a key part of the accounting landscape in 2026 and beyond.
Accountancy practices could benefit from reassessing and diversifying their recruitment efforts to tackle the skills shortage and ensure they have the best possible talent for future changes and challenges.
The growing need for skills and proficiency in areas such as AI, data analysis and digital systems make it essential to attract individuals who are technically capable or enthusiastic about training schemes, upskilling and continuous professional development opportunities.
Tapping into the hidden accounting pool and investing more in graduate programmes and internships can help practices engage with younger talent and address skills shortages.
Discover what Accountancy & Finance professionals are looking for in a job
As a specialist accountancy and finance recruitment agency, we understand how to support accountancy practices and private sector businesses in their mission to attract, engage and retain the best talent.
After conducting extensive research with accountancy and finance professionals, we compiled the What Accountancy & Finance Professionals Are Really Looking for in a Job in 2025 report.
The report delves into the key factors shaping job preferences and expectations within the industry and uncovers topics such as preferred salary, perks, benefits, work flexibility and work culture.
Read the full What Accountancy & Finance Professionals Are Really Looking for in a Job in 2025 report here.
Accountancy recruitment services
As specialist accountancy recruiters, we support practices nationwide with their permanent recruitment needs.
Whether you’re searching for a tax, audit or payroll specialist, we will help you to find whoever you need to make your practice thrive.
If you’re struggling to fill a vacancy, why not get in touch with Management Consultant Lauren Fisher on 01772 954200 to see how we can help?
Accountancy jobs
If you’re searching for your next accountancy job, why not take a look at the latest vacancies, or simply upload your CV to be notified when a relevant position becomes available.
Meet Lauren Fisher
Who is Spencer Clarke Group?
Established in 2017, we’re an award winning and progressive recruitment agency based in the heart of the North West. Our reputation is built on trust, expertise and an unwavering commitment to exceed expectations.
In 2024, we were named Recruitment Agency of the Year at the prestigious Recruiter Awards, an accolade we are extremely proud of.
We operate in two sectors:
In eleven specialisms:
Healthcare, Social Care & Nursing
Corporate Functions & Business Support
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