The outlook for the accounting industry at the start of 2025 is bright. New technologies, changing regulations, and increasing interest in specialist services will keep accounting firms busy and working efficiently in the year ahead.
With that said, businesses need to be aware of a growing number of accounting challenges. This article will run through some key accounting challenges for 2025 and provide tips for mitigating any possible adverse outcomes for your firm or clientele. Read on to learn more.
Accounting challenge #1: Keeping Up with Sustainability Reporting Standards
The demand for comprehensive sustainability reporting is growing, with environmental, social, and governance (ESG) factors becoming increasingly important to stakeholders.
In 2025, accountants must develop proficiency in varying ESG reporting standards, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). This could cause issues in maintaining consistent processes, training teams on multiple standards, and gathering high-quality data to calculate ESG metrics correctly.
To overcome these challenges in accounting, we recommend conducting a full ESG assessment to help you select the best reporting framework, optimise your data collection and management, and regularly review your reporting systems to ensure they meet regulatory requirements. See more about sustainability reporting best practices in this previous article.
Accounting Challenge #2: Leveraging New Technologies
Integrating artificial intelligence (AI) and automation in accounting processes presents opportunities and challenges for firms in 2025. According to the UK Accountancy Sector Outlook Report by HSBC UK and Accountancy Age, 75% of firms have increased technology investment in 2024, with generative AI emerging as a key focus.
While these technologies can streamline tasks and enhance efficiency, they also pose challenges for accounting firms by necessitating considerable investment and the adaptation of their processes.
To successfully leverage new technology, accountants should invest in AI and automation tools aligned with their firm’s needs, provide comprehensive staff training, focus on developing complementary skills like data analysis and strategic advisory, and stay informed about emerging technologies and their potential applications in accounting.
Accounting Challenge #3: Combatting Emerging Cybersecurity Threats
As generative AI continues to influence all industries, cybercriminals are unfortunately embracing the technology’s potential to instrument increasingly sophisticated cyber attack methods to target financial systems.
For example, AI-powered phishing campaigns can now create highly personalised and convincing emails tailored to accounting firm clients, using stolen branding, logos, and messaging. Furthermore, generative AI is also being employed to create sophisticated ransomware that can autonomously encrypt files, determine optimal ransom demands, and adjust strategies based on the target’s response. Subsequently, protecting sensitive financial data from breaches, cyber attacks, and fraudulent activities is now a top priority for accounting firms.
To address these challenges in accounting, accounting firms must implement robust cybersecurity measures and regularly update them so they can identify potential vulnerabilities as well as new cyber crime tactics and mitigate them. Plus, all firms must prioritise comprehensive cybersecurity training for all staff members to ensure they don’t fall prey to phishing and similar identity spoofing scams.
Through its partnership with Lupasafe, INAA supports its members in achieving top-tier cybersecurity standards.
Accounting Challenge #4: Increased Demand for Specialised Services
Beyond traditional bookkeeping and tax compliance, more accounting firms will need to expand their Client Advisory Services (CAS) in 2025, creating challenges with skill development, changing pricing models and adopting new data analytics tools to deliver critical client data insights.
To overcome these challenges in accounting, firms should consider specialising in specific industries to offer more targeted advisory services, attend conferences and events to learn the challenges and opportunities for each industry and enhance their client communication processes to convey their new offerings effectively. Read this previous article for more tips.
INAA: Here to Help Accounting Professionals Ahead of the Industry Curve
As the accounting industry continues to evolve, staying connected with forward-thinking professionals becomes increasingly crucial.
At INAA, we provide networking events, industry news and educational resources to help accounting and auditing professionals stay ahead of the industry curve.
To find out more about what we do, take a look at our member benefit page here, and join INAA today.