Ready for 2025: 5 steps accountants should take now to navigate the year ahead

Economic headwinds are intensifying for 2025, with rising costs and low consumer confidence putting new demands on businesses of all sizes. Your clients need more support than ever… but first, you need to ensure your practice is ready to meet these challenges.

by | 23 Jan, 2025

Building client relationships helps businesses weather economic uncertainty.


At a glance

  • Sectors like healthcare and utilities tend to be more resilient
  • Tracking clients’ payment times and debt levels can help you spot issues early
  • Digital tools and automation create stable income and enhance client retention

The UK economy faces significant challenges: the Office for National Statistics said GDP growth stalled in Q3 2024, sterling continued to hover around nine-month lows in the new year, and the British Chamber of Commerce’s latest survey indicates almost two-thirds of businesses are worried about tax.

2025 could mean tightening profit margins, reduced consumer spending and stricter lending conditions that impact companies across all sectors. If you’re a boutique practice, or your clients are mostly small businesses, you may face cash flow pressures and increased operational costs.

The good news is there are steps you can take to build a resilient practice and prepare your clients for economic uncertainty.

1. Become a true adviser

Now more than ever, clients need more than just compliance work. They need a trusted adviser. 

Start by reviewing your current service offerings and identify opportunities to add strategic value. This might mean developing new advisory packages around cash flow management or debt restructuring.

Look at your client base and segment them according to their needs and potential risks. Some industries, like healthcare and utilities, tend to be more resilient during a downturn. Which clients might need extra support? Could specific clients benefit from additional services? This insight can help create tailored service packages that address specific pain points.

Regular client health checks are also crucial. Set up a system to monitor key indicators like payment times, cash reserves and debt levels so you can spot potential issues early and position yourself as a strategic partner.

2. Embrace digital efficiency

Paul Lodder, VP of Accounting Product Strategy at Dext, says small businesses that leverage technology can streamline client engagement and operations processes. 

Paul Lodder, VP of Accounting Strategy at Dext
Paul Lodder, VP, Accounting Strategy, Dext

“By embracing digital tools to improve cash flow management and integrating strategic planning into their approach, SMEs can better weather immediate challenges while positioning themselves for longer-term growth and stability in a changing market,” he said.

Implementing tools like digital engagement letters and automated payment systems could help you free up valuable time to find, engage and onboard new clients, while software that provides fast, accurate insight into clients’ financial outlook is also popular for streamlining workflows.

3. Maximise tax planning and relief opportunities

Following the employer National Insurance contribution changes announced in the Autumn Budget, many of your clients are more concerned about tax than ever before.

Start by identifying which are near tax thresholds or experiencing significant changes in profitability. Review their business structures – could incorporating, restructuring or changing VAT schemes generate savings? Create a system to track available government support including R&D tax credits, Employment Allowance and the Help to Grow scheme.

Don’t forget sector-specific reliefs – the creative industry tax reliefs, capital allowances and regional growth funding could also offer significant opportunities. 

4. Strengthen your risk mitigation framework

Economic uncertainty demands robust risk management within your own practice. Start with your client portfolio – over reliance on one sector or a few large clients creates vulnerability, so review your client mix and identify opportunities to diversify.

Next, examine your financial resilience. Ensure you have a three-month cash reserve and review your credit terms and debt structure. If you perceive cash flow issues, consider fee financing or subscription billing models.

5. Stay in touch

Some 97% of accountants say client engagement is a key driver of growth and, in uncertain times, clear communication builds trust. 

Don’t wait for clients to reach out with concerns. A structured outreach plan could help you maintain consistent momentum – this might mean monthly email updates about economic changes affecting their sector, quarterly review meetings, or practical support triggered by late payments or declining margins.

Ensure every conversation is constructive and offers potential solutions, not just a sales pitch.  

Lodder says 2025 will bring both challenges and opportunities. 

“As we approach the new tax year in April, rising employer National Insurance contributions, reduced thresholds from the Autumn Budget and increasing supplier overhead costs will intensify pressure on cash flow,” he predicts.

By planning for the long term and implementing changes early, accountants can not only help their clients navigate immediate challenges, and emerge with deeper relationships, but also position themselves for sustainable growth with resilient business models.


The IFA will hold a conference on AI on 6 March. More information here.

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