The UK’s exit from the European Union might have consequences for accountancy staffing. Or not. Whichever, this is a good time to examine the possibilities.
First, some opportunities.
Brexit – workload is increasing
Multiple reports have found that Brexit has created a boom in demand for accounting services as UK businesses race to make sense of the situation. There is a raft of work to be undertaken such as revising forecasts, projections, reviewing management figures, considering the impact on markets, exchange rate difference, etc.
As per multiple discussions on AccountingWeb, there are many accountants who are already hiring extra staff to cope with extra paperwork.
Brexit – the staffing earthquake
Opportunities go hand in hand with threats. If skills shortages in the post-recessive market of 2008 was already a significant concern for accountants, the situation is likely to be exacerbated with Brexit.
So far British accountancy practices have been able to employ accountants from within the EU without needing immigration permission. But in light of Brexit, employment agreements might need a review.
Though chances are slim, some of your EU accountants might ultimately have to surrender their positions and go back to their country.
It’s too early to assess Brexit’s impact on accountancy staffing. However, its being widely reported that in these uncertain times, businesses - even those with strong balance sheets - are implementing recruitment freezes and cutting their investment plans.
But it’s not all doom and gloom – productivity must improve
What is the leave plan? Will Article 50 of the Lisbon treaty be triggered? Are we entering a period of recession or is it plain scaremongering? Will we ever be allowed to recruit staff from the EU?
Though the answers to these questions may take years to unfold, you can’t let your productivity slide. Recently, The Boston Consulting Group had said that UK is second from last on the G8 productivity scale -putting us behind France, Germany and Italy, and only better than Japan. With the uncertainty Brexit brings, UK productivity could go into a deeper crisis.
Outsourcing can be an excellent way to manage productivity amid this uncertainty. It allows you to access staff to grow your practice flexibly - keeping your fixed costs down, yet allowing you to move your practice forward. This could mean getting the regular compliance and tax return work sorted for example, while you focus on helping businesses face the challenges Brexit has brought along.
Outsourcing can allow you to quickly respond to the opportunities, without getting tied into long-term employment contracts or the other responsibilities that go with hiring staff.
My name is Vishal Kurani, the author of the QXAS blog and I appreciate you stopping by! I help accountants gain Accounts Outsourcing knowledge through my easy to follow blogs and guides. Download my free guide "The Accountants Guide to Making Payroll Profitable" to learn how to make payroll profitable for your accountancy practice.