LIFO the party: Large firms are expected to increase advisory services to pursue higher profit margins

Over the past five years, the Accounting Services industry has grown, buoyed by economic growth, rising equity markets and a growing number of new businesses. Furthermore, to boost revenue, the industry's largest players have also increasingly acquired smaller companies and made strategic purchases to increase their service offerings to include consulting services. Over the next five years, the industry is expected to grow. The industry will benefit from stronger aggregate private investment, a growing number of US businesses and higher activity in financial markets, including increases in initial public offerings and mergers and acquisitions activity...read more.

Industry Statistics & Market Size
Revenue
$110bn
Annual Growth 12-17
5.2%
Forecast Growth 17-22
Profit
Employment
550,668
Businesses
95,456
What Our Customers Say

Industry Threats & Opportunities

  • Profit margins have improved slightly due to rising accounting fees, higher client volumes and increased investment in technology
  • Larger firms have benefited from offering an increasing number of services over the past five years
  • The industry will benefit from stronger business activity and an overall improving economy
  • Industry Report - Industry Locations Chapter

    The geographic distribution of establishments in the Accounting Services industry is highly correlated with the overall population distribution in the United States. Accounting service providers are predominantly small businesses that focus on serving local and regional markets. Therefore, an increase in the number of individuals that require personal accounting services and businesses that need audit and tax services boosts the need for industry operators. However, the industry’s largest operators tend to be located in major metropolitan cities to service major organizations.SoutheastThe Southeast represents the most concentrated region in the industry in 2017 with an estimated 24.8% o...purchase to read more.

    Additional Insights for the Accounting Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Accounting Services Industry are

  • Access to highly skilled workforce
  • Having a good reputation
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Initial public offerings in the Accounting Services industry impact industry performance..

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    What is the Accounting Services Industry?

    Firms in this industry are certified to audit the accounting records of public and private organizations and to demonstrate compliance to generally accepted accounting practices. Certified public accountants (CPAs), included in this industry, provide a variety of accounting services, including auditing accounting records, designing accounting systems, preparing financial statements, developing budgets and providing advice on matters related to accounting.

    Industry Products
  • Financial auditing
  • Financial statement review
  • Other financial assurance services
  • General accounting
  • Tax planning and consulting
  • Individual tax preparation
  • Corporate tax preparation
  • Industry Activities
  • Auditing
  • Providing accounting advice to corporate clients
  • Providing accounting advice to individuals and small businesses
  • Accounts preparation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Initial public offerings
  • Demand from finance and insurance
  • Number of businesses
  • Number of adults aged 20 to 64

  • Current Performance
  • Demand drivers and countercyclical demand
  • Demand driver growth
  • New sources of income
  • Profit and business expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth prospects
  • Service expansion
  • Consumer competition
  • New players amongst consolidation
  • Table: Accounting Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Accounting Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Finance and Insurance
  • Real Estate and Rental and Leasing
  • Professional, Scientific and Technical Services
  • Consumers

  • Key Selling Industries
  • Business Analytics & Enterprise Software Publishing
  • Commercial Leasing
  • Computer & Packaged Software Wholesaling
  • Furniture Stores
  • Office Stationery Wholesaling

  • Products & Services
  • Financial auditing
  • Other
  • Corporate tax preparation
  • Individual tax preparation
  • Tax planning and consulting
  • General accounting
  • Financial statement review
  • Other financial assurance services
  • Chart: Accounting Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Finance sector
  • Retail sector
  • Individuals
  • Other businesses
  • Utilities and mining sector
  • Manufacturing sector
  • Public sector
  • Nonprofit organizations
  • Chart: Major Market Segmentation for the Accounting Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Accounting Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Accounting Services Industry

  • Industry Globalization
    PricewaterhouseCoopersDeloitte Touche Tohmatsu LimitedErnst & Young Global LimitedKPMG International
  • Table: PricewaterhouseCoopers - financial performance
  • Table: Deloitte Touche Tohmatsu Limited - financial performance
  • Table: Ernst & Young Global Limited - financial performance
  • Table: KPMG International - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Accounting Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Accounting Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of businesses (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Auditing
  • The act of reviewing a company's financial operations to ensure regulatory compliance.
  • Initial Public Offering (Ipo)
  • The issuing of a company's common stock to the public for the first time.
  • International Financial Reporting Standards (Ifrs)
  • The standards, interpretation and framework for financial reporting adopted by the International Accounting Standards Board.
  • Why buy this report?

    The Accounting Services industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Accounting Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Accounting Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Accounting Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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