The headlines are grim : 82% of UK businesses struggled to hire and retain staff in 2024, with 90% of SME owners reporting skills gaps. But here's what those statistics don't tell you: the smartest small accounting firms aren't just surviving this crisis, they're using it as a catalyst for growth.
The difference isn't luck. It's strategy.
The Reality Check: It's Not Getting Easier
Let's be honest about what you're facing. The IT and communications sector saw 93% of businesses report hiring difficulties last year. For accounting firms, finding qualified bookkeepers, tax specialists, or even reliable admin staff has become a monthly headache rather than an annual recruitment drive.
But while everyone's focused on the problem, the solution-focused firms are pulling ahead. They've stopped waiting for the perfect candidate to walk through their door and started building systems that work regardless of headcount.
Strategy 1: Outsourcing : But Not How You Think
When most firm owners hear "outsourcing," they think of shipping entire departments overseas. That's not what successful small firms are doing.
Smart outsourcing in 2025 looks like this: you keep client-facing work in-house and outsource the time-consuming backend tasks that don't require face-to-face interaction. Think bookkeeping data entry, payroll processing, VAT returns, or that mountain of bank reconciliations that keeps growing.
The numbers back this up : 57% of UK businesses are expanding through outsourced staffing this year. But here's the key: they're doing it strategically, not desperately.
What to outsource first:
- Monthly bookkeeping for straightforward clients
- Payroll processing and pension submissions
- VAT return preparation
- Bank reconciliations
- Basic tax computations
What to keep in-house:
- Initial client consultations
- Complex advisory work
- Year-end planning conversations
- Problem-solving and troubleshooting
This approach means you can take on more clients without the overhead of full-time salaries, pension contributions, or the risk of someone leaving mid-project.
Strategy 2: Workflow Automation That Actually Works
Technology isn't about replacing people : it's about making the people you have more effective. Small firms that are growing despite staff shortages have identified the 3-5 tasks that eat up the most time and automated those first.
Quick wins for small firms:
- Client onboarding: Automated document collection, digital signatures, and setup checklists
- Invoice processing: OCR software that pulls data directly into your accounting system
- Time tracking: Apps that automatically capture billable time without manual entry
- Report generation: Templates that pull data automatically for monthly client reports
- Appointment scheduling: Self-service booking systems that eliminate phone tag
The goal isn't to automate everything : it's to eliminate the repetitive tasks that prevent your team from focusing on higher-value work.
Strategy 3: Upskilling Your Current Team
Instead of hiring specialists for every task, successful small firms are training existing staff to handle multiple roles. This isn't about overloading people : it's about creating flexible team members who can adapt to changing priorities.
Practical upskilling approaches:
- Train your bookkeeping staff to handle basic payroll queries
- Teach administrative staff to prepare VAT returns
- Cross-train team members on different accounting software packages
- Develop specialists in specific sectors (construction, retail, hospitality)
The return on investment is immediate. One well-trained team member who can handle three types of work is worth more than three people who can only do one thing each.
Strategy 4: Flexible Working That Attracts Talent
The firms winning the talent war aren't offering the highest salaries : they're offering the most flexibility. Remote work, flexible hours, and part-time arrangements aren't just nice-to-haves anymore; they're competitive advantages.
Flexible arrangements that work:
- Hybrid schedules: 2-3 days in office, rest remote
- Compressed hours: Four 10-hour days instead of five 8-hour days
- Seasonal flexibility: Adjusted hours during quiet periods, higher intensity during year-end
- Project-based contracts: Bringing in specialists for specific engagements
This approach expands your talent pool significantly. You can attract experienced accountants who left traditional practice for better work-life balance, parents who need flexible schedules, or semi-retired professionals who want to stay engaged part-time.
Strategy 5: Capacity Planning Over Headcount Planning
Growing firms have shifted from thinking about how many people they need to thinking about how much capacity they need. It's a subtle but crucial difference.
Capacity planning means understanding:
- Which tasks require senior expertise vs. basic competence
- How to batch similar work for efficiency
- When to bring in temporary help vs. permanent staff
- Which clients generate the most profitable work
Capacity optimization tactics:
- Batch similar client work (all VAT returns on Wednesdays)
- Standardise service offerings to reduce custom work
- Implement clear handoff procedures between team levels
- Use project management tools to track capacity in real-time
Strategy 6: Client Portfolio Management
Here's an uncomfortable truth: not all clients are worth the staffing headache they create. Small firms that are growing despite staff shortages have learned to be selective about the work they take on.
Red flag clients to avoid:
- Ones who demand same-day turnarounds regularly
- Those who provide disorganised records consistently
- Clients who want highly customised services at standard rates
- Anyone who treats your team poorly
Ideal clients to pursue:
- Well-organised businesses with clean records
- Companies that value your advice, not just compliance
- Clients willing to pay for quality and timeliness
- Those open to digital workflows and modern processes
This isn't about being elitist : it's about sustainability. One difficult client can consume resources that could serve three good ones.
Making It Work: A Practical 90-Day Plan
Month 1: Assessment
- List all tasks taking more than 2 hours per week
- Identify which could be automated, outsourced, or eliminated
- Survey current team about bottlenecks and frustrations
Month 2: Implementation
- Choose one process to automate (start with client onboarding)
- Pilot outsourcing with one type of work (bank reconciliations work well)
- Begin upskilling conversations with existing team
Month 3: Optimisation
- Measure time saved from automation and outsourcing
- Refine processes based on what you've learned
- Plan next phase of improvements
The Competitive Advantage Hidden in Plain Sight
While your competitors complain about staff shortages, you're building a more resilient business model. The firms implementing these strategies aren't just surviving the current crisis : they're positioning themselves to thrive when the labour market eventually stabilises.
The staff shortage crisis has forced small firms to become more efficient, more selective, and more strategic. Those changes aren't temporary fixes : they're permanent competitive advantages.
Your firm doesn't need more people to grow. It needs better systems, smarter processes, and strategic thinking about how work gets done. The shortage of traditional employees isn't your problem : it's your opportunity to build something better.
Frequently Asked Questions
Q: How do I know if outsourcing is right for my small firm?
A: Start with tasks that are clearly defined, don't require client interaction, and consume significant time each month. If you're spending more than 10 hours weekly on bank reconciliations or basic bookkeeping, that's a good candidate for outsourcing.
Q: Won't clients notice if I'm using outsourced staff?
A: Quality clients care about accuracy, timeliness, and communication : not where the work gets done. As long as you maintain standards and clear communication, most clients won't notice (or care) about your backend arrangements.
If your firm is ready to grow strategically despite the staffing challenges, we can help you identify which processes to outsource first and implement systems that work for small practices. The conversation starts with understanding exactly where your time goes each month.
Blog Title: Staff Shortage Crisis: How Small UK Firms Can Still Grow
Primary Keyword: staff shortage UK accounting firms
Supporting Keywords: accounting firm growth, outsourcing UK, accounting workflow automation
Meta Description: Discover how small UK accounting firms are growing despite staff shortages through smart outsourcing, automation, and strategic workforce planning. Practical strategies inside.
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- Why UK accounting firms are turning to India for bookkeeping services
- 7 signs your manual processes are killing your accounting firm's growth
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Notes: Consider follow-up posts on specific automation tools and outsourcing partner selection criteria