Poland and Italy: accounting firms balance reform, digital change and consolidation
Poland and Italy are both navigating intense regulatory and economic change, but from very different positions. Poland is emerging from a period of rapid reform and now focusing on implementing digital systems, while Italy is grappling with chronic complexity, fee pressure and mounting client expectations.
In both markets, firms are reassessing their service mix, technology and talent strategies to stay competitive.
Last month, managing partner Grzegorz Modzelewski from MGI Worldwide member firm MGI Modzelewski in Poland, and partners Dario Galloni from MGI Creo+, and Pietro Daidone from Integré, in Italy, took time out to tke part in the IAB discussion, sharing their views on digitalisation, consolidation pressures and how firms are adapting to shifting client needs.
Poland: digital shift after reform
After a burst of major reforms in 2022–2023, including changes linked to minimum income tax (Pillar 2), the legislative tempo in Poland has slowed. Attention is now turning to the practical side of implementation, especially the rollout of the national e-invoicing system (KSeF), due to become mandatory in 2026. Firms are investing in systems, processes and training to cope with new digital and reporting obligations.
This environment is fuelling demand for outsourcing, compliance and advisory services, but also raising the bar on technology. Smaller practices in particular face pressure to modernise or consider joining larger structures.
Fee pressure and the talent pyramid
Grzegorz notes that the challenge is not finding work, but making it profitable.
“Demand is moderately growing, thanks to new compliance obligations and digital projects. But fee growth is lagging while people costs remain elevated, so margins are under pressure. Competition is intensifying due to digitisation and AI, which is compressing prices on commoditised work. In response, firms are automating baseline processes, cautiously repricing and rebalancing the talent pyramid by hiring fewer entry-level roles, upskilling retained staff, and prioritising experienced people who can design and run AI-enabled workflows. Retention remains manageable, but salary levels are still high.”
— Grzegorz Modzelewski, MGI Modzelewski
Italy: complexity and rising expectations
Italy continues to adjust its tax and business environment through incremental changes, with recent measures aimed at encouraging investment, digital transformation and sustainability. However, the overall tax burden and regulatory complexity remain high, and clients increasingly expect more strategic guidance on tax, technology, ESG and cross-border issues.
This is pushing firms beyond pure compliance into broader consulting roles, blending fiscal expertise with digital and business advisory skills. At the same time, higher wage costs and flat fees in traditional work are squeezing margins, particularly for smaller firms that struggle to invest heavily in technology.
Consolidation and structural limits
The market, however, remains highly fragmented.
“The Italian accounting firm market remains highly fragmented. Compared to Anglo-Saxon countries, Italy lags behind in terms of consolidation processes and mergers between firms. Another critical issue concerns the persistent structural under-sizing of many accounting firms, a factor that negatively impacts their ability to make significant investments in advanced technologies and to adopt more sophisticated organisational models.”
— Dario Galloni, MGI Creo+
Private equity firms are beginning to show an interest in the Italian accountancy market, but this dynamic is still very much in the early stages of adoption and is far from common. Regulation adds further friction.
“Some consolidation attempts have taken place, but regulatory and tax barriers slow down mergers between firms.”
— Pietro Daidone, Integré
Looking ahead: scale, specialisation and technology
Across both Poland and Italy, firms are being pushed to invest in technology, develop specialist capabilities and rethink their talent models, all while managing persistent fee pressure. Those able to scale, automate and move further into advisory work are best placed to benefit from ongoing reform and digitalisation across Europe.
Solid rankings across Europe
MGI Worldwide ranks an impressive 13th in the IAB's Poland Networks Fee Data 2025, 13th in Germany, and 14th in Italy and France, underlining the network's strong position across the region.
To read the full article in the IAB, members can click HERE (login to the MGI Worldwide member portal will be required).
Click the links for more information about our contributing member firms, MGI Modzelewski, MGI Creo+, and Integré.
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