Tax, audit and accounting firms face tech push and talent shortages

Unpredictable and frequent legislative changes, a lack of qualified professionals, brain drain, and pressure to integrate advanced technologies like AI, automation and cloud-based platforms are the main challenges facing tax advisory, auditing and accounting companies in Slovakia. These challenges are paired with a growing demand from clients for consultancy and strategic advisory services, reshaping firms’ roles towards more value-added, strategic partnership models.

“We live in times when the only certainty is uncertainty, but it is precisely this that can teach us to be more agile,” said Valéria Morťaniková, a partner at Deloitte Slovensko’s Tax Advisory Department, adding that the standard form of consulting is on the decline. “Companies don’t just want answers to questions; they expect imaginative solutions that take a comprehensive approach to tax, accounting, legal and financial matters.”

The drive for greater efficiency is pushing companies towards tax technology solutions.

“Tax advisory firms that are not leaders in this area and do not offer quality technological tools are not the firms of the future,” said Morťaniková of Deloitte, which tops the ranking of tax advisors compiled by The Slovak Spectator. “We see this as a global trend.”

Along with tax advisors, The Slovak Specator compiled rankings of audit an accounting firms. 

Technology matters

PwC Slovakia, which was ranked third after Ernst & Young (EY), agrees that artificial intelligence (AI) is significantly impacting the provision of consulting services, as well as internal tax functions.

“I see potential to reinvent the internal tax function, using time savings for deeper analysis that helps businesses grow and seek new opportunities,” said Christiana Serugová, Partner, CEE TLP Clients & Markets Leader, PwC Slovakia.

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Audit firms are also under pressure to adopt technology-driven audit models as the profession undergoes a global structural transition.

“While these trends mirror international developments, Slovakia’s market faces specific challenges such as fragmented readiness for ESG compliance and varying levels of digital maturity among companies,” said Martin Kršjak, head of audit and a partner at KPMG in Slovakia. The company ranked second among audit firms, behind PwC Slovakia and ahead of EY.

Global firms with access to cross-border expertise and tools are better positioned to navigate this shift. The profession is moving beyond traditional verification towards real-time analytics and predictive insights, driven by technologies such as AI, automation and cloud-based platforms.

“The main challenge is not just to modernise audit processes but to redefine their role in supporting market stability and long-term corporate resilience,” said Kršjak.

Alongside digitalisation and automation, one of the biggest challenges for the tax consultancy and accounting sector in Slovakia is the shortage of qualified professionals.

“This problem is not unique to Slovakia – we see similar trends abroad, but here it is tied to a brain drain and low interest among young people in the profession,” said Peter Pašek, managing director and partner at Accace Slovensko, which ranked first among accounting firms.

Digitalisation and automation are reshaping client expectations, demanding faster, more accurate, and personalised services. This shift requires significant investment in technology and adjustments to traditional work models.

“The Slovak market is gradually catching up with Western countries, but there is still work to do, especially in integrating AI and data analytics into everyday practice,” said Pašek.

Bart Waterloos, managing partner of CLA Slovakia, the accounting firm which placed second, also sees the integration of new technologies and the change it brings to processes as one of the biggest challenges.

“But not only that, we also have to manage this change with our staff,” Waterloos told The Slovak Spectator. “We currently have four generations among our staff, and it’s clear that younger generations approach technology adoption differently than older ones.”

Moreover, CLA Slovakia is facing difficulties attracting young talent.

“Unlike other countries, Slovakia is experiencing a brain drain that could hinder us in the future,” Waterloos added.

The lack of skilled labour, particularly employees who can combine accounting expertise with technological know-how, is a challenge echoed by Marian Čerňanský, accounting & advisory director at TPA Slovakia, which ranked third.

“This shortage significantly slows down the adoption of new technologies and puts pressure on existing staff,” said Čerňanský.

At the same time, companies are under increasing pressure to improve efficiency, leading to greater automation and digitalisation of accounting processes. The market is moving away from traditional, labour-intensive accounting towards modern, highly efficient approaches focused on analytics, reporting, and added value.

“However, this transition requires investment in technology and continuous staff training,” said Čerňanský.

Unpredictable legislative environment

A particular challenge in Slovakia is the unpredictability of legislative changes. Frequent amendments and ambiguous interpretations create uncertainty for businesses and consulting firms alike.

“There has not been a single year since Slovakia’s establishment in 1993 without changes to the Slovak tax code,” said Serugová of PwC.

The timing of these changes is problematic, as they are often introduced very close to their dates on which they come into effect, leaving businesses and consultants with little time for discussion or adaptation. The recent introduction of the financial transaction tax was a prime example.

Consultancy and accounting firms are forced to constantly monitor legislative developments and flexibly adapt their processes, increasing operational complexity and costs.

“This creates different conditions for doing business in this sector,” said Čerňanský of TPA Slovakia, adding that while the challenges mirror those seen abroad, Slovakia’s situation is marked by legislative instability and talent shortages.

Shift to more value-added consulting

With technological advances, tax consultancy, audit, and accounting firms are confronted with growing demand for consulting services from their clients. 

“Accounting is now seen as a strategic tool for decision-making, planning and optimising corporate processes,” said Čerňanský.

Kršjak of KPMG Slovakia noted that audit expectations have shifted from mere compliance to strategic guidance, including ESG readiness, cyber risk, internal controls and data analytics. Advisory roles now extend to regulatory transformation, resilience planning, and enterprise risk governance, positioning firms as partners in future-ready models.

“Requests increasingly extend beyond statutory audits to include advisory roles in regulatory transformation, resilience planning and enterprise-wide risk governance,” Kršjak noted. “This reflects a broader trend across industries, where audit is expected not only to validate performance but to help anticipate and mitigate systemic risks.”

Global geopolitics, such as the recent hikes in US tariffs, are reshaping business models, pushing companies to focus more on international regulations and digitalisation, emphasised Serugová of PwC Slovakia. Morťaniková of Deloitte Slovensko added that rising costs and tax burdens are making efficiency and cost reduction priorities for many companies.

In the accounting sector, CLA Slovakia is observing a rising need for business succession planning, as first-generation business owners approach retirement.

“We are also seeing more requests for liquidations or business closures due to the worsening economic situation,” noted Waterloos.