Where does the industry currently stand when it comes to digital technology? We asked, and accountants responded, looking at everything from Making Tax Digital (MTD) to how they are using new solutions.

The polling took place during our IRIS Elements update webinar, where 1,300 accountants and bookkeepers joined us.

The answers we received painted a sometimes-surprising picture of how the profession is handling change.

We uncovered a story of challenge and opportunity. On the one hand, there is anxiety about new compliance regulations. On the other hand, there is real optimism that accountants can use tech to get this compliance work over the line. We also saw that people are front and centre of their cloud strategy.

Without further ado, look at our results, beginning with what’s currently hitting industry headlines: MTD.

The MTD ITSA reality check: a time of imperfect progress for the industry

We began by asking accountants how ready they thought their clients were for MTD ITSA.

The results were a little mixed.

In all, 3% said all their client base is fully prepared, and 9% said groundwork is nearly complete. 43% said 51-75% of clients are ready.

However, almost a third (29%) indicate that 25% or fewer of their clients are set up.

This confirms what many in the industry have suspected: significant progress has been made, but there’s still much to do.

How this aligns with other industry statistics

What we see here aligns with broader industry sentiment. It’s always a mixed outlook. Clients have different expectations, and accountants have to juggle this with deadlines, no matter what.

For example, HMRC said medium-sized practices often feel the pressure between two sets of clients. On one side, they have early-adopting ‘digital’ clients. On the other, they have traditional clients that are hesitant about change.

The daily life of a practice, it seems, is never straightforward.

Compliance fatigue is real, but MTD is top of mind

Perhaps the most notable finding is that accountants confirmed MTD ITSA is their top compliance challenge. Overall, 78.8% said this was the case. That’s almost four times more than any other regulatory issue. This reflects the profession’s collective concern about being a link between complex regulations and clients who often don’t understand the implications.

Responses do feature other compliance concerns. For example, some accounts did agree that the Economic Crime and Corporate Transparency Act and AML were issues for them.

Why MTD is different

However, the dominance of MTD reflects a very specific burden. With MTD, accountants are simultaneously compliance educators, technical implementers, and relationship managers. That’s a lot to deal with, and reminds us of other recent studies. These show increased stress among accounting professionals, particularly those in practices serving SMEs. There is a strong correlation between the two sets of findings.

The pressure of regulation

What is the most valuable software investment accountants think they will make in the next 12 months? Our poll shows that 72% of firms say it is in tax and compliance automation.

This expected investment in automation significantly outnumbers client experience (15%) and practice efficiency (9%).

When we look at all our results together, it’s clear that compliance is the top priority because of regulatory pressures.

The cloud revolution puts people first

Next, we asked accountants what they think is the most important benefit of cloud technology.

The clear winner? Greater flexibility in working arrangements, as indicated by 51% of responses.

Infrastructure cost reduction (13% of responses) and improved security (14% of responses) were among those far behind the human-centred top choice.

This finding captures the fundamental shift in the accounting profession after the pandemic. The workplace has changed. Hybrid working and employee wellbeing are king. Cloud technology is the key to retaining talent and achieving a work-life balance.

The way accountants verify ID is shifting

There is more evidence of industry transition when we look at how accountants approach ID verification for Companies House.

For example, accountants are split between using automated ID verification tools (53%) and manual processes (47%).

There is something else that is particularly interesting. Among those using automated tools, 75% prefer an ad-hoc client-by-client approach. This suggests accountants desire control and flexibility even when implementing new technologies. They are not rushing into full automation; instead, they are carefully choosing when and how to use it.

The technology-first future

What will drive the most growth in the next three years for accountants? 65% of respondents say it will be efficiency through technology. Instead of expanding through traditional methods like new service lines or acquisitions, they want technology to increase capability.

The good news is that if they achieve this, then value-based pricing and higher-level advisory work are possible. By automating routine compliance tasks, accountants are positioning themselves to concentrate on the strategic advice that clients increasingly need.

The IRIS Elements effect on accountant/client relationships

How has IRIS Elements made a difference in accountants’ lives? The biggest change accountants saw was in being able to access real-time data. This, in turn, enables more meaningful and frequent client interactions. These accountants are moving away from being occasional reporters to becoming continuous advisors.

This shift to continuous engagement is perhaps the most significant change in the accountant-client relationship for decades.

A profession turning pressure into people-centred solutions

These poll results reflect the mindset of a profession taking charge.

Accountants are shaping the industry’s future rather than merely being buffeted by external pressures. Yes, there is anxiety about compliance deadlines and technological implementation challenges, but there is also strategic thinking.

Accountants are looking at how to turn pressures into catalysts for positive change. Internally, they are using it to improve processes and the working life of their staff. Externally, they are embracing digital transformation to better serve their clients.

You’re not alone in feeling the pressure, but collectively, you are uncovering opportunities. The profession is moving together towards a more efficient, flexible, and client-focused future.

So, how will you take technology and use it to improve life for your staff and your clients?

Discover the possibilities here