Accountancy and business services : Future trends

Role of the ‘Big Four’

The ongoing dominance of the ‘Big Four’, as well as their global structure, is currently examined from many angles, not least the relationship between their auditing and consulting functions.

US regulators in particular have already attempted to come to grips with how they can possibly regulate an entire ‘Big Four’ firm when their oversight and investigatory capacities apply only to those offices in America.

Their concerns are mirrored in many other countries, including the UK, and global discussions will continue to seek answers to the dilemma.

Recruitment - Competing for talent with the ‘Big Four’

This sector has seen an increase in the number of applications in the last two years. The 'Big Four' are always reviewing their recruitment methodology to attract the most motivated and enthusiastic people for the profession.

Smaller firms will continue to struggle against larger firms for talent at all levels, including graduates. One means of smaller firms competing against bigger rivals is to explore non-traditional recruiting means, targeting graduates with general business majors and using intensive training to bridge existing skills gaps.

Place of women - diversity initiatives

More women are entering the profession and may even begin to outnumber their male counterparts in future years.

Overall the percentage of female members of all six chartered accountancy bodies has risen from 28% in 2004 to 33% in 2009. (Financial Reporting Council, Key Facts and Trends, 2010)

Impact of technology

Accounting has seen tremendous advancements thanks to the growth of information technology in recent years.

According to Accountancy Age  magazine, accountants are ahead of the game when it comes to the use of new technology to grow their business. The UK currently ranks highly for e-commerce so this area is likely to have a huge impact on work in the sector in the future. Improved technology has meant that accountants can spend time on financial analysis, adding value to the business and to their role.

Regulation

The Financial Reporting Council (FRC) is a regulator that monitors and enforces accounting and auditing standards, oversees the regulatory activities of the professional accountancy bodies and promotes high standards of corporate governance.

Regulation is one of the greatest challenges for the profession, despite accountancy’s reputation for strict regulation. Many organisations, such as the Institute of Chartered Accountants in England and Wales (ICAEW), are working towards reinforcing and encouraging good performance and reducing the complexity of audit practices in order to make the profession attractive to professionals and graduates.

Environmental accounting

Environmental accounting is a growth area. The vast majority of accountants believe they will become involved in calculating carbon offsetting at their firms. This will be done by encouraging transparency in areas including auditing, climate change and research.  

The process of carbon offsetting involves calculating the emissions produced by a firm and then purchasing 'credits' from emission reduction projects. Carbon offsetting looks to be accountancy's next big challenge and developing the skill set needed to navigate this exciting new field might be a make-or-break challenge in an accountant's career.