- Early career accountants lose almost five hours a week to manual processes and disconnected systems
- Firms competing on salary are fighting the wrong battle, with only 1% considering it their biggest priority
- 44% say investing in modern technology would be their top priority if they were managing partner
IRIS' study of 500 final-year accounting students, recent graduates, and early-career accounting professionals**, revealed a stark gap in what technology junior colleagues expected to have access to, and what practices were equipping them with.
Nearly half (43%) expected modern, cloud-based systems in place and 34% expected seamless, integrated technology across all workflows. However, 40% of respondents already in training or working full-time admitted to spending significant time on manual data entry - and a quarter (25%) work across more than five disconnected systems day-to-day. Early career accountants revealed that these issues are leading to five hours being wasted each week, equivalent to 33 days of productive time being lost each year.
Technology as a retention tool
IRIS' findings highlighted technology's role in underpinning the day-to-day experience that supports staff retention. When asked what would make them stay at a firm even if they received a higher salary offer elsewhere, 24% said excellent technology and efficient process - putting tech above colleague and leadership relationships (22%), interest in the work (17%), and firm culture and values (15%) for staying power.
While work-life balance (54%) and salary (50%) were high among the list of factors that mattered most when young talent looks for their first accounting role, one in five (20%) also felt tech-enabled processes that simplify work was important to see in their first job. Just 1% said that salary was the single most important factor when choosing where to work.
Jonathan Priestley, General Manager for Global Accountancy Solutions and Transformation at IRIS Accountancy, said: "Practice modernisation is often discussed in terms of productivity and profitability. But it's rarely considered as a factor in attracting and retaining talent - despite chronic skills shortages across the sector.
"The profession is at a crossroads. Firms are being asked to do more with less, while also meeting rising expectations for the new generation of talent who won't accept inefficient, disconnected workflows as the norm.
"It's clear that firms need to establish a new blueprint for practice growth, setting out a clear strategy with technology and efficiency at its heart, so that junior staff aren't losing time to outdated processes and accountants are unlocking the high-value consultancy work that actually increases margins."
Firms of the future
Tech frustrations appeared to shape how the next generation believes firms should evolve. Nearly nine in ten (89%) said they believe Making Tax Digital will force firms to modernise their systems in ways that directly benefit early-career accountants.
When asked what they would prioritise if made managing partner tomorrow, 44% said investing in modern, integrated technology and automation immediately - rising to 54% among qualified accountants and 70% among those with five years' experience. Almost all (94%) agreed that connected technology would enable them to do their job better.
The research also raises wider questions about the traditional career path through the profession's largest firms. More than half of respondents (54%) agreed that the Big Four is becoming a less reliable route to success, despite the majority of young talent still aiming for careers with the sector's largest firms.
Jonathan Priestley added: "Practices that treat MTD as a compliance burden will modernise minimally, while those embracing the digital shift will recognise it as the moment young accountants have been waiting for, and come out operationally stronger and better placed to attract and retain the talent the sector is fighting for. But the broader pattern is clear: the longer people work inside these practices, the more certain they become about what's holding them back.
"What our research shows is that the firms most likely to win the talent battle are those that invest in their people and their technology in equal measure - not those with reputation and big names. The practices that recognise that and act on it now, before MTD forces their hand, are the ones that will come out of the next few years in a fundamentally stronger position."
For a deeper look at what the next generation of accountants expects from the profession - and how firms can respond - download the full report here.
*Based on accountants working seven hours a day 47 weeks of the year.
**Survey of 500 final-year accounting students, recent graduates and early-career accounting professionals in the UK conducted by Censuswide, on behalf of IRIS Software Group, between 20 February - 26 February 2026.
About IRIS Software Group
IRIS Software Group is a global provider of mission critical software and one of the UK's largest privately held software companies. IRIS provides software solutions and services for finance, HR and payroll teams, educational organisations, and accountancy firms that takes the pain out of processes and lets professionals focus on the work they love. Through simplifying, automating and providing insights on everyday mission critical tasks for organisations of all shapes and sizes, IRIS ensures customers can look forward with certainty and confidence.
IRIS is the largest third-party online filer with the UK Government. Ninety-three of the top 100 UK accountancy firms use IRIS software. One in six of the UK's workforce is paid by IRIS payroll offerings, and globally, six million employees receive their payslip via IRIS software every month. More than 850,000 UK employees are managed by IRIS HR solutions. Over 12,000 UK schools and academies use IRIS, with four million parents and guardians using IRIS apps to connect with their children's school; 300 million messages are delivered between schools and parents each year, and over £15 million transactional payments are processed every month. IRIS is certified as a Great Place to Work and recognised as one of The Times Top 50 Employers for Gender Equality in 2023. IRIS is also recognised as one of the Best Workplaces for Wellbeing, one of the Best Workplaces in Tech and one of the Best Workplaces for Women.
To see how IRIS helps organisations get things right first time, every time, visit www.iris.co.uk or follow IRIS Software Group on LinkedIn, Twitter and Instagram.
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