Irish accounting firms
   |    Reviewed by Abhishek Singh

The economic landscape of Ireland is transforming significantly in 2025. According to the Economic forecast for Ireland, the Ireland’s GDP is expected to grow by 3.4% in 2025. The Irish economy has entered this year in a good shape.

However, there are a number of challenges faced by Irish accounting firms in 2025 in the form of housing crisis, skill shortages and certain vulnerable sectors.

For, Irish accounting firms, this environment is about more than compliance. They are constantly dealing with changing technology, difficult regulations and clients who want more than traditional services.

The biggest challenge facing by the accounting profession today is not just meeting the rules, but staying ahead in a fast-moving, demanding market.

5 Challenges faced by Irish accounting firms

The Irish accounting sector is facing a mix of challenges, that needs fast and smart action. These challenges are from every side, economic, technological, difficult rules and changing client needs.

Modern Irish accounting practices must address these issues to maintain competitive advantage. Now, accounting firms cannot rely on the old ways of working anymore.

Here, we are going to understand about the topmost 5 critical challenges that are faced by accounting firms in Ireland.

1. Economic and market pressure

The increasing economic pressures are affecting both productivity in operations and client relationships. Market competition from international networks is making it difficult for the local practices. Brexit continues to create complications for companies serving clients with UK operations.

  • High costs for expenses like rent, insurance and compliance needs are making hard for firms to make profit.
  • When client budget is constrained they often ask for lower fees or cancel contracts.
  • Competition from Big Four firms and international networks for high-value clients and skilled talent is increasing.
  • Brexit is causing extra costs and confusion for clients who do business with the UK.
  • Unstable economic conditions affects client to maintain good cash flow and disturbs the payment patterns across various industry sectors.

2. Technology and digital transformation

The accounting technology is getting advanced rapidly. It creates both opportunities as well as challenges for Irish firms. Automation and AI are transforming the main accounting functions fundamentally.

  • Investing in new systems and training the staff is the basic requirement for firms adopting to cloud-based accounting.
  • The routine jobs are taken over by AI, forcing firms to rethink what services they offer and how they add value.
  • The cyber threats are growing rapidly which means firms must have strong and encrypted security systems to protect their sensitive information.
  • Companies need to upgrade their technology as clients now expect quick access to their financial information.

3. Regulatory complications

Irish accounting firms has to deal with more complex rules and regulations to follow, both in Ireland and internationally. With Brexit and new EU laws, things have become harder, especially for businesses in the UK.

  • Clients are required to meet more detailed compliance needs as per the new EU and international tax rules.
  • Brexit has added new rules for cross-border transactions and reporting with the UK.
  • Anti-money laundering laws require firms to have strong systems to spot and report suspicious activities.
  • Firms must protect client information with strict privacy and security measures due to the data protection laws.

4. Talent acquisition and retention

Many Irish firms are struggling with staff shortages. As skilled accountants are leaving for jobs in big companies that offer better pay and maintains flexible in work-life balance.

  • Fewer students are choosing accounting as a career which makes it harder to hire new graduates.
  • Experienced and trained staff are moving to multinational companies where they can work remotely and earn more.
  • Firms lose time and money spent on training when qualified staff leave for competitors.
  • Planning for the future is tough, as senior partners retire and there aren’t enough replacements ready to step up.

5. Evolving client service needs

Irish accounting clients now expect real business advice and insights not just help with taxes. Firms must change how they deliver services to keep up with these new demands.

  • Clients demand real time financial insights, not just reports on what happened last year.
  • Accountants are expected to give advice on business strategy not just managing numbers.
  • There are so many firms that offer similar services, it is getting difficult to stand out from the crowd.
  • While clients want lower fees for routine tasks, they still expect high-quality advice at fair prices.
Service evolution timelineTraditional focusCurrent expectationsFuture requirements
Financial reportingAnnual statementsQuarterly updatesReal-time dashboards
Tax servicesCompliance filingStrategic planningIntegrated optimisation
Business advisoryLimited consultationStrategic partnershipIndustry specialisation
Client communicationPeriodic meetingsContinuous accessProactive updates

Impact on Irish Accounting firms

The challenges faced by Irish accounting firms has a huge impact on them. Many firms rethink how they operate and what they offer.

For most firms the biggest problem is finding and keeping good staff. Buying new technology and training people is hard for small firms. Big firms lose many new accountants within a few years. This makes it even harder for all firms to do well.

Declining operational productivity

Irish accounting firms are having a tough time running smoothly as they deal with new problems:

  • Clients wants more and the old ways do not keep up with the new technology.
  • As staff is still learning new systems they are not as productive during times of change.
  • There is more paperwork and checks to follow rules and keep data safe.
  • It’s hard to decide where to spend money, on tech, training or keeping good staff.

Changing client relationships

The way firms works with clients is changing a lot:

  • Clients wants to know how firms can really help them as they feel basic accounting is easy to get.
  • As there are abundance of choices clients cannot stay loyal much.
  • Firms are required to work closely with clients all year.
  • Clients want accountants to know their business as well as their own teams.

Money problems

Making money is getting tougher:

  • Costs like rent and insurance are rising.
  • Brexit means clients want more advice but want to pay less because they’re unsure.
  • More competition means firms can’t charge as much but still need to spend more.
  • Charging by the hour doesn’t work well because computers do many simple jobs now.
  • Firms need to charge based on the value they give, not just time spent.

More competition and risks

Firms face more competition and risks:

  • Tech companies offer automated accounting directly to businesses.
  • Big international firms are coming to Ireland and getting top clients.
  • Specialist consultants are taking over advice work accountants used to do.
  • It’s easier for new firms to start and clients can switch firms easily, so old advantages are gone.
overcome irish accounting firms challenges

How to overcome these challenges?

To solve these big challenges faced by Irish accounting firms, small changes won’t be enough. Firms need to make big improvements in technology, people and how they work with clients that too at the same time.

According to the AI Economy in Ireland 2025 report by Trinity College Dublin and Microsoft Ireland, AI adoption in Ireland has surged to 91% in 2025, nearly doubling from 49% in 2024.

Success depends on strong leadership, involving your team, and keeping clients informed during the changes.

You have to keep doing great work today while preparing for the future. The firms that do best are those who see these challenges as chances to grow.

Use technology wisely

Transform your practice through smart technology adoption that improves human expertise:

  • Use cloud accounting tools that help clients and your team work better together.
  • First, focus on technology that improves how you serve clients, then update your internal systems.
  • Make sure your cybersecurity is strong to protect data and support remote work.
  • Work with tech partners who provide ongoing support and training, not just a one-time setup.
  • Encourage team members who like technology to help others learn and use new tools.

Need more details on any of these steps? Get in touch for further information.

Grow your advisory services

Transform traditional compliance roles into strategic advisory positions:

  • Help your staff become experts in certain industries so they can give better advice.
  • Change your services to focus more on helping clients grow, not just doing routine tasks.
  • Build your own tools and ways of working that make your advice stand out.
  • Train your team in business strategy as well as accounting.
  • Show clients you are a trusted partner, not just someone who handles paperwork.

Attract and keep great people

Create innovative career environments that attract and retain top professionals:

  • Offer flexible work options that fit modern life but still keep service quality high.
  • Set up mentorship programs so experienced staff can guide newer team members.
  • Create clear career paths beyond just promotions.
  • Invest in ongoing training to keep your team up to date.
  • Let staff specialize in areas they enjoy, making your firm more attractive than big corporations.

Build strong client relationships

Create strong and lasting client relationships that stand up to competition:

  • Regularly show clients how your work helps their business succeed, not just that you’re meeting requirements.
  • Keep in touch often to update clients on rule changes and new opportunities.
  • Offer services that provide value all year, not just during busy times.
  • Really understand your clients’ industries and challenges.
  • Ask clients for feedback and use it to improve your services.

Conclusion

There are multiple challenges faced by Irish accounting firms all at once, new technology, shortages in skilled labour and fluctuating client needs. Those firms will get succeed who see them as chances to improve. The Covid-19 pandemic showed how important it is to be flexible and ready to adapt.

To succeed, firms must plan well, invest in new technology, and help their people grow. It’s about handling all these changes together and being open to new ideas. Those who focus on giving great service and staying ahead will do best.

In short, Irish accounting firms that embrace change, support their teams and put clients first will lead the way in 2025 and beyond.

Outbooks is a leading accounting outsourcing company in Ireland that helps you in saving 60% of your overhead expenses. You can effortlessly provide your work to our certified accountants and expect great returns and accurate results. Get in touch with us at: +44 (0) 330 057 8597 | info@outbooks.com

FAQs

What is the biggest challenge that accountants are facing?+

The constant changes in technology, new regulations and the increasing difficulty in financial information and to deal with them is the biggest challenge for accountants.

Why there is a low number in accountants in Ireland?+

There are multiple reasons for it: shortage of skilled staff, high costs and strict regulations also the pandemic and Brexit have made business difficult.

Who are the Big 4 firms?+

The Big 4 accounting firms are: Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst & Young), KPMG. These are the largest and most famous accounting firms in the world.

Why are accountants quitting in Ireland?+

The imbalance in work life is the main culprit for the quitting of accountants. The long working hours and pressures of job makes it difficult to maintain the balance between personal and professional life.

How is accounting challenging?+

Accounting is challenging because: It requires strong attention to detail and accuracy. Rules and regulations keep changing, so accountants must always stay updated. The work can be repetitive and stressful, especially during busy periods like tax season.

Parul Aggarwal - Outbooks

Parul is a dedicated writer and expert in the accounting industry, known for her insightful and well researched content. Her writing covers a wide range of topics, including tax regulations, financial reporting standards, and best practices for compliance. She is committed to producing content that not only informs but also empowers readers to make informed decisions.

by:Parul Aggarwal