A lack of talent could be beginning to harm accounting firms, as nearly three-quarters said they were turning away business, with a shortage of skilled individuals having a ‘severe impact’.

The latest Global Accounting Talent Index from AdvanceTrack shows that 73% of firms are turning away work because of a lack of capacity and talent.

The survey of 500 accountants in the UK, Australia, US, and Canada found that when asked if a talent shortage was having a severe impact, 33% ‘strongly’ agreed, and 40% agreed ‘somewhat’.

‘In the UK, where Making Tax Digital (MTD) and escalating compliance demands amplify these pressures, the findings hit particularly close to home,’ said Steve Cox, chief executive officer at AIR Network, a UK group of firms.