There’s a growing problem for UK business that we don’t talk about enough, we’re running out of the skills we need to compete, and nowhere is that more evident than in the finance and accountancy sectors.

Employers across the country are telling us the same story, they cannot find people with the right mix of technical know-how, digital confidence and ‘power skills’. This means that teams are stretched to breaking point, productivity drops, and recruitment costs spiralling.

According to our recent report, Filling the Gap, almost four in five employers now say they have skills gaps in their business. That’s not just a statistic; it’s a glaring red flag for our economy. When finance teams cannot keep up, businesses slow down. Decisions take longer. Opportunities are missed. Growth stalls. And nobody wins.

The new accountant

The role of the accountant has transformed. It’s no longer just about balancing books or managing payroll. Today’s employers want professionals who can lead, think strategically (27%), analyse data (23%), and navigate digital transformation.

Yes, technical skills still matter – they always will, but they’re no longer enough on their own. Finance and accounting professionals now need to blend expertise in budgeting and forecasting with high levels of communication and interpersonal skills and be tech savvy.

To meet this challenge head on, businesses are looking at practical solutions, like targeted training and upskilling programmes to build well rounded talent that is not just classroom ready but equipped for the real world.

The barriers to upskilling

While some see training as the answer, others (84%) face barriers to upskilling their teams. The main obstacles being time, cost, and a lack of suitable training options. But it’s not all doom and gloom: a quarter of the employers we spoke to have upskilled existing staff in the past year, and one in 10 are using apprenticeships to bring in new talent.

But if truth be told, employers cannot fix this alone. Every outsourced role or missed training opportunity is one less chance for UK talent to flourish. To close the gap, we need stronger collaboration between business, government, and training providers.

A generation losing its footing

One of the most worrying trends is the decline in work readiness among younger employees. Employers tell us that many school leavers and graduates do not lack potential, they are simply missing the key skills and confidence needed to thrive at work.

With 950,000 economically inactive young people - NEETS (not in education, employment or training, and aged 16-24) - the problem isn’t a shortage of talent but a disconnect between what education provides and what employers need.

And it’s worth asking: is this new, or has the digital age made it worse?

Today’s young people are ambitious, creative, and digital savvy, but often less familiar with the complexities of traditional employment. They’re entering a new stage of life, shaped by doom-scrolling, bite-sized information, in fact often misinformation, and rising costs, where opportunities feel fewer and competition tougher.

Without early support, mentoring, and work-ready learning, we risk losing a generation of bright minds to frustration and lost opportunities

The reality is that nobody comes ‘ready-made’, they never have. It’s an opportunity to shape people who can grow with your organisation.

That’s why apprenticeships and structured training matter more than ever. They give people the space to learn how to be professionals, not just faces on a screen.

Building tomorrow’s workforce

Employers are calling for a simpler, clearer, and more flexible skills system. They want better guidance on which short courses qualify under the Growth and Skills Levy, replacement for the apprenticeship levy, renewed incentives for hiring apprentices, and practical support for SMEs to access training.

At the same time, businesses must offer clear progression routes and partner with training providers to build future-ready finance teams. It’s about creating a system where technical, digital, and human skills are developed side by side and this starts in training and education and should continue into professional employment.

The finance team is the engine of every business. If we fail to close the skills gap, the entire economy will feel it, through slower growth, weaker innovation, and missed opportunities. But with the right collaboration between business, government, and industry, we can build a finance workforce that’s equipped not just for today, but for the future.

About the author

Sarah Beale is chief executive of AAT, the Association of Accounting Technicians

AAT report, Filling the Gap