Keywords : Accountancy, employee, Corporate Finance, Accountancy firm, Chartered Accountant, tax, tax avoidance
Executive Summary For the purposes of this report, Key Note has divided the accountancy market in the UK into four key sectors: audit and accounting; tax and legal services; corporate finance and business recovery; and consultancy services. The first three sectors are generally seen as the ‘core’ areas of the market, although the consultancy services sector is by far the largest in terms of fee income and is perhaps the most luc...
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Executive Summary
For the purposes of this report, Key Note has divided the accountancy market in the UK into four key sectors: audit and accounting; tax and legal services; corporate finance and business recovery; and consultancy services. The first three sectors are generally seen as the ‘core’ areas of the market, although the consultancy services sector is by far the largest in terms of fee income and is perhaps the most lucrative sector of the market.
The consultancy services sector, which includes management consultancy, is one of the fastest-growing sectors of the market, second in terms of growth only to the tax and legal services sector. Between 2008 and 2012, the value of the consultancy services sector grew by 6.2% — this compares with growth of 9.1% for tax and legal services; 5.8% for audit and accounting; and 2.3% for corporate finance and business recovery over the same period. Within the next few years, Key Note believes it to be likely that the consultancy services sector will become the fastest growing of the accountancy market.
The rise of consultancy services within accountancy firms, especially in the largest firms, has been particularly noteworthy over the past 5 years and is likely to be so over the next 5 years as well. This is due to accountancy firms turning towards consultancy services as they struggle to increase revenues in the mature auditing sector. Auditing is, by nature, a strictly controlled activity, as essentially accountants can only perform it in a limited way due to accounting regulations. Consultancy services, in contrast, are not as restricted by such regulations and, as such, accountancy firms have more flexibility with the way that they can develop this sector, which is one of the reasons why fee income is likely to increase over the forecast period.
The market remains dominated by the Big Four accountancy firms, which have seen their market share increase over the review period and now account for over a third of the UK accountancy market. Further to this, they are also responsible for the auditing of all but one of the FTSE 100 companies and a sizeable majority of the FTSE 350 companies.
After the Big Four firms are the 46 mid-tier firms which, with the Big Four firms, make up the UK’s top 50 firms by fee income. These also account for a large proportion of the total UK accountancy market. After this, there are thousands of small firms and individuals offering their services to small- and medium-sized enterprises (SMEs).
Between 2008 and 2017, Key Note estimates that the market for accountancy and related services in the UK will grow by 31.9%. Much of this growth will be seen between 2013 and 2017 as the market recovers from the damage caused by the economic slump, with growth in the market between 2013 and 2017 estimated to be at 19.4%.
Accounting And Corporate Finance Industry in the United Kingdom
Table of Contents
Foreword
Executive Summary
Market Definition
REPORT COVERAGE
MARKET SECTORS
Auditing and Accounting
Tax and Legal Services
Corporate Finance and Business Recovery
Consultancy Services
MARKET TRENDS
Big Four Continue to Dominate - For Now
Government Crackdown on Tax Avoidance
Forensic Accountancy
The Rise of Consultancy
Islamic Finance and Sharia Law
ECONOMIC TRENDS
MARKET POSITION
The UK
Overseas
Market Size
INTRODUCTION
THE TOTAL MARKET
BY MARKET SECTOR
Audit and Accounting
Tax and Legal Services
Corporate Finance and Business Recovery
Consultancy Services
Industry Background
INTRODUCTION
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION
PROFESSIONAL Associations
Association of Chartered Certified Accountants
Chartered Institute of Management Accountants
Chartered Institute of Public Finance Accountancy
Institute of Chartered Accountants in England and Wales
Chartered Accounts Ireland
Institute of Chartered Accountants Scotland
Competitor Analysis
INTRODUCTION
THE MID-TIER FIRMS
MARKET LEADERS
PwC
Deloitte LLP
KPMG LLP
Ernst and Young LLP
LEADING MID-TIER FIRMS
Grant Thornton UK LLP
BDO LLP
RSM Tenon Group PLC
Smith and Williamson Holding Ltd
Baker Tilly Tax and Accounting Ltd
Moore Stephens LLP
OUTSIDE SUPPLIERS
ADVERTISING AND PROMOTION
Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Buying Behaviour
OVERVIEW
Current Issues
AUDIT COMPETITION CONCERNS
EU Competition Ruling
Competition Commission
MERGERS AND ACQUISITIONS: THE KEY TO TACKLING THE BIG FOUR?
TAX AVOIDANCE CRACKDOWN
ACCOUNTANTS AND LEGAL PROFESSIONAL PRIVILEGE
AUDIT AND ACCOUNTING THRESHOLDS ALIGNED
FOREIGN ACCOUNT TAX COMPLIANCE ACT
FINANCIAL REPORTING COUNCIL BECOMES BODY FOR ACCOUNTING STANDARDS
The Global Market
FEE INCOME
Forecasts
INTRODUCTION
Economic Forecasts
FORECASTS TO
MARKET GROWTH
FUTURE TRENDS
The Demise of the Big Four's Dominance?
Greenhouse Gas Accounting
Accountancy Firms: A Departure From the High Street?
Continual Investment in Technology
Company Profiles
INTRODUCTION
DEFINITIONS
Turnover (Sales)
Pre-Tax Profit
Profit Margin
Average Remuneration
Sales per Employee
FURTHER INFORMATION
BAKER TILLY TAX AND ACCOUNTING LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
BDO LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
DELOITTE LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
ERNST and YOUNG LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
GRANT THORNTON UK LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
KPMG LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
MOORE STEPHENS LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
PRICEWATERHOUSECOOPERS LLP
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
RSM TENON GROUP PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
SMITH and WILLIAMSON HOLDINGS LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
Further Sources
Associations
Publications
Government Publications
Other Sources
Key Note Sources
Key Note Ltd
Key Note Research
The Key Note Range of Reports
