James Todd & Co, an accountancy provider with over 30 years of expertise working with clients operating in the tech sector, has shared insights into the growing demand for advisory-based accounting, as more and more firms face challenges related to compliance, tax, and regulation.
Pressure points around R&D taxes and credits, as well as increases in main corporation tax rates, and advancements in automation and AI applications have all proven to be major influences in the technology market, meaning companies need more personalised guidance to remain competitive, financially stable and resilient.
Exploring the reasons UK technology businesses are relying on expert support
Traditionally, accountants helped clients by preparing tax returns and year-end accounts, performing audits and providing regular bookkeeping to give businesses the peace of mind that their financial declarations were accurate and timely.
In todayโs tech sector, however, that level of input is just one aspect of the services technology accountants provide, with companies that are scaling quickly and need to keep a firm grip on their organisational risks and businesses that need to focus on regulatory compliance due to increased scrutiny.
Some of the many trends that have contributed to this sustained need for advisory assistance from accountancy professionals who understand the tech landscape include:
- Uncertainty about the stability of the economy, which poses a challenge for 29% of all UK organisations
- Rising costs of energy, materials and payroll, especially since increases to employers’ NICs
- Limited access to capital funding, something that 74% of tech firm owners have reported is the biggest issue blocking their expansion plans
Most tech companies also don’t rely on conventional operating models or funding structures and need to adhere to newly developed compliance frameworks. This means that generalised accounting only covers the basics, without providing the practical input and independent analyses that owners depend on to make quick and informed decisions.
Benefits of working with a tech-sector focused accountancy team
Michelle Buzzard, FCA, Partner at James Todd & Co says “Sector-specialist expertise is not optional for so many of our clients that require guidance around complex decision making, including international expansions, business valuations, exit planning and funding rounds.
Likewise, the introduction of automation and cloud accounting, with remotely accessible dashboards, has enabled us to provide responsive and on-demand reporting and analytics, allowing tech clients to maintain continued supervision of their profitability, cash flows, and reserves without creating additional tasks that represent a time burden.
Tech is often perceived as an industry with massive opportunities, but alongside that comes increased demands to comply with ever-changing regulations, data protection legislation and cybersecurity laws, which means firms need advice from chartered, qualified accountants who are in a position to help them navigate each of these areas with confidence.”
The outlook for technology sector organisations following the Autumn 2025 Budget
Further changes were unveiled within the much-anticipated Autumn Budget, with the Chancellor announcing reforms to salary sacrifice schemes, increases to minimum wages, and extensions to income tax threshold freezes, which will affect the way some firms manage their remuneration packages.
In more positive news for small to medium-sized tech firms and following the R&D tax credit consultation, which closed in May, Rachel Reeves announced that the government would begin piloting a new advance assurance service from early next year, which will enable eligible firms to receive guidance on R&D tax relief claims before submission.
Although there arenโt any major changes to R&D tax relief as yet, the government reasserted its pledge to invest ยฃ2 billion into AI and ยฃ160 million into TechFirst training, both of which were announced in the Spending Review 2025.
Michelle adds that, “In times of rapid change, professional, unbiased and up-to-date advice is always valuable. We might, for example, work with one technology business on restructuring to attract investment, and with another on augmenting their visibility and management of cash flow through cloud-based tools, improving efficiency, securing financing and helping firms scale safely and sustainably.”
Details about the broad range of accountancy, advisory, and mentoring services provided by James Todd & Co are available on the firm’s website, alongside more information about the niche markets in which existing tech clients operate.
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About James Todd & Co
James Todd & Co have been providing accounting services for more than 30 years across Chichester, Fareham, and Portsmouth for businesses across the South East. Their clients trust them to provide bookkeeping, financial auditing and compliance, management accounting and financial advisory services.
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