Wolters Kluwer: UK Accounting Firms Accelerate Shift to Advisory, but Lag Leading European Markets

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Research from Wolters Kluwer Tax & Accounting shows that UK  accounting firms are accelerating their shift toward advisory services, but many have not yet fully  embedded these capabilities. Six in ten firms (60%) now position advisory as a core service, below  the European average (67%) and behind leading markets such as Denmark (77%), Spain (76%) and  the Netherlands (73%), highlighting that the UK is not yet on par with more advanced European  markets in embedding advisory at the center of firm strategy. “The profession has talked about advisory for years, but advances in AI, together with regulatory  developments like Making Tax Digital and upcoming e-invoicing requirements, make this a decisive  moment to act. These developments are not just compliance changes, they create a wealth of real time data and ongoing client touchpoints, giving firms an opportunity to formalise, scale and  monetise advisory-led services,” said Bas Kniphorst, EVP & Managing Director, Wolters Kluwer  Tax & Accounting Europe. Making Tax Digital and the continued rollout of e-invoicing are creating a structural opportunity for  UK firms to strengthen advisory services. At the same time, demand for higher-value services is  emerging, particularly in areas such as ESG (38% increasing demand), cybersecurity (37%) and  data privacy (35%). While many firms already offer advisory services, these trends highlight a clear  opportunity to strengthen how services are positioned, delivered and scaled. Currently, 60% of UK  firms offer advisory services, while 41% plan to expand these offerings in the next 12 months. However, this opportunity is not yet fully translating into demand. At just 12%, the share of UK firms  reporting demand for strategic advice is significantly lower than in markets such as the Netherlands  (57%) and Belgium (47%), reinforcing the gap between advisory ambition and client pull in the UK  market. Technology and data propel advisory-first engagement Technology is a critical enabler of advisory transformation. UK firms are already seeing benefits from  these investments, with 50% reporting greater efficiency and 34% higher client satisfaction,  supporting the move toward more strategic advisory services. Globally and at a European level, the proactive use of client data to identify advisory opportunities is  now the norm, with just 13% of firms saying they do not use client data in this way. In the UK,  however, adoption is lower and almost one in five (19%) report that they not currently use client data  to proactively identify advisory opportunities. UK firms are also seeing more modest returns from AI compared to their European peers. While  55% of UK firms report better-than-expected results from using AI to enhance advisory services, this  trails the European average (at 73%). This suggests UK accounting firms may face particular  challenges in realising the full potential of AI for advisory services, highlighting the need for  continued investment in people and platforms to close the gap with international peers. “Firms that successfully scale advisory, supported by AI, technology and data will be better  positioned to differentiate themselves, deepen client relationships and drive long-term growth”, said  Marie Costers, Vice President & General Manager, Tax & Accounting, UK, Netherlands and  Belgium. The growing importance of advisory services in the industry is captured in a new global chapter of  Wolters Kluwer Future Ready Accountant (FRA) research: Advisory-first engagement: From  Compliance to strategic partnership. Based on responses from more than 2,700 professionals  across 14 countries, the research shows how tax and accounting firms worldwide are moving  beyond compliance to deliver strategic, advisory led client relationships. Today, 93% of firms offer  advisory services, up from 83% just one year ago, with nearly two-thirds (65%) viewing advisory as a  core service rather than an optional add-on.  NoYesAccounting15 Jul, 2026