What lies ahead in 2025?

What lies ahead in 2025?

We asked the accountancy bodies CEOs for their thoughts on what will happen over the next 12 months. Here’s what they told us…

Looking to the next generation

This coming April will mark my first anniversary as Chief Executive of ICAEW, a year in which I’ve been privileged to meet chartered accountants around the world and learn about their varied roles.

This year is an exciting time to be at ICAEW, with the first students starting our next generation ACA qualification when it rolls out in September.

The ACA has launched global careers in business, finance and accountancy for almost 150 years, and our exciting changes will ensure that the qualification remains ‘best in class’ for the next generation.

The updated ACA represents the biggest change to the qualification in 30 years, and will provide the next generation of students with the skills in ethics, technology, data analytics and sustainability to adapt to and lead the profession, workplace and world of the future. It’s our intention to also offer this new content to members as free CPD, while our existing students will be able to choose whether to complete the ACA through either the current or existing route.

We’re also hopeful that 2025 will bring further progress on audit and corporate governance reform, a key part of which will be the creation of the new regulator, the Audit, Reporting and Governance Authority. It’s seven years this month since the collapse of Carillion, and we are working with the government to make this significant legislation a success.

We’ll continue our close working with CIPFA, which gives those eligible the opportunity to became a dual member of both institutes. Like some of my colleagues I’m proud to have become a CIPFA member and we’ll continue to develop our partnership.

It’s already shaping up to be a busy year and I’m looking forward to meeting more ICAEW students and members. It’s always great to hear how their training has benefitted them and the next generation ACA will continue to prepare members for successful careers in practice and business right around the world.

I wish all students the very best of luck with their studies.

• Alan Vallance, ICAEW Chief Executive

Shaping the profession for a new future

The pace of change over the next five years is expected to be faster than at any time in the last 100 years, leading many to question what the future might look like for the accountancy and finance industry.

Adaptability will be a central theme for 2025. The profession must remain agile if we are to continue delivering value and ethical leadership as change in economic, political and societal landscapes intensifies. We must also make sure we respond to society’s evolving needs and expectations, which is where ICAS’ new programme of activity, ‘Shaping the Profession’, comes to the fore. Throughout 2025 we’ll examine, consider and map out a bright future for accountancy as part of this work.

We expect the UK’s draft Audit and Corporate Governance Reform Bill to be published this year, charting the Government’s direction for years to come. The Bill should lead to an enhanced and more transparent reporting ecosystem, as it aims to hold board directors accountable for their responsibilities. It will also set plans in motion for a new, long-anticipated regulator.

Sustainability reporting and assurance will remain another key focus, with clarity on UK reporting standards expected in the first half of 2025. The profession’s role in balancing growth with sustainability will be critical, as businesses navigate their transition journeys. Sustainability, along with ethics and technology, will be the prominent themes for the next generation of chartered accountants. With that in mind, all three topics have been embedded in each level of the new ICAS syllabus and learning model, launched in March 2024, as well as featuring in our ‘Shaping the Profession’ activity.

From the ongoing evolution of AI tools to potential breakthroughs in quantum computing, technological advancements will continue to reshape our approach to work. As with all of the challenges and opportunities that will define 2025, the profession’s DNA – rooted in trust and ethical integrity – must continue to guide us all.

• Bruce Cartwright CA, CEO, ICAS

Shifting political sands add to public sector pressures

What will 2025 bring for public financial management professionals? The major political shifts of 2024 have led to significant policy developments around governance and local accountability, resource allocation and public service delivery. Public finance practitioners must respond positively as business partners showing leadership and innovation.

The pressures on public services remain critical. Healthcare, social care and education systems continue to face unsustainable increases in demand, with associated costs far outpacing available funding. No government can or should spend its way out of this situation, so against this backdrop the need for bold, systemic reforms is clearer than ever. Policymakers must move beyond stopgap measures and embrace transformative strategies that deliver sustainable outcomes for communities.

Devolution is a key element of this approach. Empowering local leaders with the flexibility and resources to make decisions tailored to their areas is essential, but it must be paired with robust frameworks for accountability and sustainability. As CIPFA has highlighted, successful devolution requires transparent funding models, effective local audit systems and simplified structures that reduce systemic inefficiencies while improving responsiveness to local needs.

For finance professionals, 2025 is a year to step up as leaders of change. Balancing immediate fiscal responsibilities with the imperative to drive long-term innovation requires both resilience and adaptability. It means embracing new technologies and leveraging data to deliver better outcomes for communities.

At CIPFA we remain committed to supporting public finance professionals through these transitions. Our 2025 strategic vision focuses on relevance and impact, strengthening partnerships, empowering our community, and driving innovation.

This year also marks CIPFA’s 140th anniversary — a moment to celebrate our legacy while laying the foundations for sustainable growth, especially through our strategic partnership with the ICAEW. Together, we can turn 2025 into a milestone year for progress, collaboration and impactful change in public finance.

• Owen Mapley, CEO, CIPFA

Onwards and upwards in 2025

I know that you continue to work incredibly hard on attaining your qualification, and on achieving your dreams of a fantastic professional career. We know that it’s a tough journey, but please always remember that the hard work is worthwhile, and accountancy is a brilliant choice for a stimulating, flexible, purposeful and rewarding future.

Last year was a good one for ACCA members and future members. We reached the milestone of a quarter of a million members worldwide across 180 countries. We also celebrated our 120th anniversary.

And there is plenty more to come in 2025 as we continue to support PQ accountants with all the resources, advice and support you need to be successful in our exams and careers. These include our industry-leading Study Hub, our Practice Platform, our bite-size explainer videos, our YouTube channel, improved Student Accountant app, and our ACCA

Careers job site. Our major goal is to ensure that ACCA members and future members are super-employable.

That’s why one of our key aims is to look at how your world is changing. 2025 will bring an even greater focus on sustainability as businesses respond to greater demands from regulators, governments, investors, customers and their own staff. Accountants across the world are already starting to embrace sustainability as a key part of their work, and this will increase further over 2025.

Artificial intelligence will also play a stronger role. The profession has always harnessed technology and new generations of accountants will continue that strength as it looks to use digital technology for maximum benefit, but at the same time manage the ethical risks that arise.

All of this is shaking up the work of accountants, making your work broader, wider and even more important. This will bring you greater choice and opportunities in your future careers, greater purpose in your work, and enable you to play your part in creating a better world.

I’m sure you’ll be reading a lot more about these exciting developments in forthcoming editions of PQ Magazine.

• Helen Brand is Chief Executive of ACCA

Navigating the challenges ahead

As we enter 2025, it feels like the world is once again standing at a crossroads, grappling with a mix of challenges and opportunities that will define the global landscape for the next 12 months.

In the world of accounting and finance there are three key trends set to shape the profession in 2025:

• Artificial intelligence (AI): AI continues to revolutionise the accounting and finance profession. From automating routine tasks to providing realtime insights into company performance, AI’s potential for accounting and finance is immense. Accounting and finance professionals who embrace AI and develop their skills will be better equipped to succeed in a digital-led business world and enhance their role as trusted business advisers.

• Value creation: With AI and technology accelerating change, the value delivered to businesses through the finance team via core management accounting competencies will become even more critical. Accounting and finance professionals will be expected to leverage their expertise to optimise resource allocation, manage costs, drive efficiency, deliver transformation and support strategic decision-making in what is likely to be a tough economic environment.

• Sustainability: While sentiment around the world towards ESG is mixed, few argue against creating and delivering value through sustainable business models. For accounting and finance professionals, the pressure remains on how to further integrate non-financial and financial information to support strategic decision-making, drive performance and deliver organisational resilience.

As we enter 2025, our profession once again stands at the forefront of change – from technology to sustainability, continuously enhancing our skill sets will be crucial. By doing so, we not only ensure our continued relevance as management accountants but also position ourselves as key drivers of growth and innovation within our organisations.

Let’s embrace this journey with an open mind, ready to accelerate, lead and inspire.

• Andrew Harding is Chief Executive – Management Accounting at AICPA & CIMA

What 2025 holds for our changing industry

Accountancy is set for another year marked by big changes, big challenges and, as ever, huge opportunity.

Last year saw a change of government, bringing major policy shifts. Time will tell whether Rachel Reeves’ set of tax changes, netting £36.2bn a year in additional revenue, was worth the pain that’s being felt by small businesses – many struggling to make the numbers add up.

2025 will see accountants, including AAT members, in greater demand. They will be needed to apply their technical expertise, adaptability and communication skills to help businesses grapple with a variety of changes, from technology through to regulatory changes such as those in the Budget.

Accountants need to be able to do more than add up the figures; they need to understand commercial opportunity, interpret data, communicate complex financial concepts and advise on responsible business practices. That’s why ‘power skills’ are central to AAT qualifications –ensuring you’re best prepared to make a difference in the real world.

All of the above will, in the immediate term, exacerbate the pressing challenge that is accountancy’s talent shortage.

Recent Skills England data shows that of all industries, finance and insurance had the highest proportion of jobs (69.4%) that they have analysed as being in serious demand. That’s 944,000 roles. And then there are 41,000 accounting technician positions across the whole economy in critical demand. This means employers can’t find the qualified staff they need, while current accountants have ever-rising workloads.

But help is on its way! To assist the industry in tackling the skills gap, next month we’re launching AAT Careers Hub – a new platform connecting our 118,000-strong member and student community with employers who know that ‘AAT’ means quality.

AAT Careers Hub is the UK’s first accountancy job site that offers a dedicated board for apprenticeship opportunities, creating a superhighway for employers and talent to connect with one another at all stages of your career.

I strongly encourage you to make use of this new service. You can register with AAT Careers Hub at www.jobs.aat.org.uk.

While evolving technology and client needs continue to reshape our industry, AAT remains committed to supporting your journey. Through AAT Careers Hub and our broader charitable initiatives, we’re here to help you seize every opportunity ahead.

• Sarah Beale, AAT CEO