Industry Analysis & Industry Trends
Like most of the financial sector, the Global Accounting Services industry's revenue fell in 2009, after reaching a historical peak in 2008. The correction imposed on the industry as the financial crisis took hold proved to be only minor, as accounting firms have since rebounded and hit a new historic high in 2011. Revenue is expected to grow by a mild 1.2% per annum over the five years through 2012. The industry is forecast to generate revenue of $361 billion in 2012, a 1.9% jump from the previous year. Growth will increase further in 2013, with revenue forecast to increase by 3.5%... read more
Industry Investment
The capital intensity of this industry is determined by the ratio of labor to capital costs. To calculate the ratio, wages and depreciation costs, taken from the cost structure, are utilized as proxies. The ratio is calculated as 1:23.2. This means that for every dollar spent on the use and replacement of buildings and equipment wages, $23.15 is spent on labor. As such, this industry is deemed to have a low level of capital intensity. Instead, the industry is labor intensive due to the specialist skills and knowledge required to operate in this industry. This includes changes to tax laws and other legislation relating to tax and other matters. There are also labor-intensive compliance matters associated with personal and company tax returns... read more