The Modern Accountant Weekly Newsletter | 🌱 ESG Services Are Booming—Is Your Firm Ready?

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Editors Pick 📣

🧠 Still Overwhelmed? You’re Not Alone.

Despite the tech, too many firms are still drowning in manual work, MTD stress, and disjointed systems. But some are pulling ahead — not by doing more, but by doing less (smarter).

📊 In this no-fluff mid-year reality check, we break down:

• The 5 biggest blockers holding firms back

• Why AI alone won’t save you — but better design might

• How to finally shift from admin to advisory

👇 Read the full piece to see what the top-performing firms are doing differently.

Sector Spotlight 🌟

ECONOMIC DYNAMICS

Trump Tariffs Prompt Temporary Surge in UK Exports and Economic Growth

A surprisingly robust start to 2025 saw UK GDP rise by 0.7% in the first quarter, powered by sharp gains in services, business investment, and a striking surge in exports to the US. This uptick, however, was largely driven by businesses rushing to ship goods and complete deals before Trump’s new tariffs hit, giving the economy a “borrowed time” boost rather than signalling sustainable growth. While the numbers look healthy at a glance, they mask deeper issues: productivity growth is sputtering, inflation soared to 3.5% in April due to climbing energy bills and tax hikes, and confidence among consumers and businesses remains shaky despite lower interest rates.

For accountants and business owners, the real challenge is seeing past temporary windfalls. As the impact of front-loaded eCommerce and manufacturing exports fades, expect rising costs and persistent global uncertainty to create headwinds. The months ahead will test whether the UK can convert this fleeting momentum into something more lasting.

WORKFORCE MANAGEMENT

Deloitte Cuts Bonuses And Slows Promotions After Consulting Misses Targets

TAX TECHNOLOGY TRANSFORMATION

Thomson Reuters Prepares Accounting Firms For Making Tax Digital Transition

SUSTAINABILITY REPORTING STANDARDS

ICAEW Urges Greater Simplicity and Alignment in European Sustainability Reporting Standards

ICAEW’s response to the European consultative call on ESRS simplification is a timely reminder that, while the EU’s sustainability agenda is bold, the pace of regulatory change has created avoidable pitfalls. Overly detailed requirements and unclear double materiality obligations risk confusing businesses rather than empowering them. The insistence on speedy standard-setting, without ample stakeholder input, only exacerbates these challenges for both European and UK companies in scope.

There’s a strong case for leveraging international frameworks like the ISSB as a baseline. Such alignment not only streamlines processes but could reduce redundancy, making it simpler for companies to demonstrate high-quality, comparable sustainability disclosures. Ultimately, building stakeholder trust and ensuring standards are practical—as well as ambitious—relies on clear consultation, rigorous due process, and sensible, interoperable rules rather than endless complexity.

SUSTAINABILITY ADVISORY SERVICES

Accountants Expand ESG Services Amidst Rising Demand And Regulatory Complexity

Sustainability is rapidly reshaping the accounting landscape, with nearly half of mid-tier UK firms now offering environmental, social and governance (ESG) services—an area no longer dominated by the Big Four. As regulations catch more businesses in their net and stakeholders demand greater transparency, accountants are seizing the chance to help clients navigate complex reporting and gain a competitive edge. Notably, smaller firms now realise ESG readiness isn’t just a regulatory box to tick; it’s key to securing finance and winning over customers and talent.

Despite clear commercial opportunities, firms face hurdles. The sector suffers a skills shortage, with many current accountants needing urgent ESG upskilling, and there’s confusion over fragmented and evolving reporting standards. Yet, as standards like IFRS S2 edge closer to UK adoption and client demand grows, expect the ESG service boom to continue—savvy firms will position themselves at the forefront of this shift.