UK accountancy inefficiencies cost sector GBP £5.3 billion

A new report from Silverfin has identified that inefficiencies in UK accountancy firms are costing the sector approximately 16% of potential revenue annually.

According to the findings, British accountancy firms, which contribute GBP £33.3 billion to UK GDP, are losing an estimated GBP £5.328 billion each year due to outdated systems and processes.

The report, titled 'All Accounted For' 2025, outlines that each full-time accountant is missing out on nearly GBP £48,000 in billable hours per year that could be recovered if inefficiencies were addressed.

For partners within these firms, the report reveals that only 14% of their time is currently dedicated to strategic planning, despite 51% of firms listing growth as their primary strategic goal. For every hour spent on client advisory work, partners spend 1.5 hours on internal administrative tasks.

The study also highlights how economic instability is cited by 34% of surveyed firms as a factor affecting growth prospects during the current year, while 23% attribute slow digital transformation to a shortfall in technical skills.

On a daily basis, accountants report losing an average of 1.2 hours to tasks considered to be of low value, including manual data entry, chasing colleagues or clients, and completing repetitive compliance work. Outdated or poorly integrated systems were highlighted by one in five respondents as a significant drain on their time.

In addition to lost revenue and productivity, the research underscores the personal toll on professionals in the industry. One in four accountants report experiencing signs of burnout, with 31% working six or more extra hours each week. A significant majority, 77%, say they would be in favour of a formal right-to-disconnect policy to help manage these pressures.

Support for developing new talent appears limited, with 21% of accountants stating that training and mentoring junior staff is mundane work.

Despite the widespread recognition of technology as a tool for growth—with 89% of firms having invested in automation and digital solutions—only 8% of company time has been spent on implementing new technology, and just 9% on training staff to use it. This suggests that many firms may not be realising full returns from these investments.

The research does find optimism around artificial intelligence (AI), with 85% of firms indicating AI is helping them save time. On average, accountants estimate that AI has led to a 9% time saving, with expectations for this figure to rise to 12% by 2028. However, challenges in adoption remain, as 44% of accountants are unsure how AI could benefit their work, and 28% point to staff resistance to change as a significant barrier.

Lisa Miles-Heal, Chief Executive Officer of Silverfin, commented: "This isn't just about inefficiency, it's about lost opportunity. Every hour wasted is an hour that could be spent advising clients, growing the firm, and making a real difference to UK businesses.

"Technology alone won't solve the problem. But when firms connect the dots between data, skills, and strategy, and actually act on it, that's when the real transformation happens. That's how technology becomes a true growth engine, not just another tool."

The survey methodology included a sample of 350 partners as well as senior to mid-level employees at UK accounting firms. Respondents were drawn from 210 large firms with turnover between GBP £50.1 million and GBP £1 billion, and 140 medium-sized firms with turnover between GBP £1 million and GBP £50 million. All firms included in the survey employed at least 15 people.

The average annual revenue per firm in the sample was GBP £84.96 million, with an average firm size of 291.57 employees. The report calculated the mean loss of billable hours per full-time accountant as GBP £47,686 per year, equating to a mean lost revenue per firm of GBP £13,903,807. Based on potential revenue figures, this amounts to a 16.4% loss in potential earnings for the firms surveyed.