Major companies in the accounting services market include PwC, Ernst & Young, KPMG, Deloitte Touche Tohmatsu Limited, ADP LLC, BDO LLP, Paychex Inc., Grant Thornton LLP, RSM International and H&R Block Inc.
The global accounting services market is expected to grow from $1175.88 billion in 2021 to $1324.77 billion in 2022 at a compound annual growth rate (CAGR) of 12.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2019.02 billion in 2026 at a CAGR of 11.1%.
The accounting services market consists of the sales of accounting services and related goods by entities (organizations, sole traders and partnerships) that provide recording and analysis of financial transactions and other financial values pertaining to businesses and other organizations.The accounting service involves summarizing, analyzing, auditing and reporting of the financial transactions to tax collection agencies and entities.
It also involves auditing and preparing financial statements, designing accounting systems, developing budgets and accounting advisory.Accounting services undertake processes where human capital is the major input.
They make available the knowledge and skills of their employees, often on an assignment basis, where an individual or team is responsible for the delivery of services to the client.
The main types of accounting services are payroll services, tax preparation services, and bookkeeping, financial auditing and other accounting service.A payroll service provider is a business that automates payroll computations, tax statements, and year-end taxes, among other services.
These services are used by various industries such as IT services, manufacturing, financial services, construction, and others. The different service providers include large enterprise, small and medium enterprise.
North America was the largest region in the accounting services market in 2021.Western Europe was the second largest region in the accounting services market.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Regulatory reforms in the financial sector have heightened demand for accounting services such as accounting and tax advisory.For instance, Basel-3 standards implemented in 2019, thus increased the demand for accounting services globally.
The Basel Committee on Banking Supervision designed Basel III as a set of internationally agreed-upon policies in response to the financial crisis.The reforms are intended to improve bank regulation, oversight, and risk management.
Over the next five years, further major changes, such as the UK’s exit from the EU will create additional demand for accounting consultants, thereby driving the market.
Some accountants are outsourcing typical basic accounting tasks such as payroll accounting, accounts payable and accounts receivable to allow their employees to focus on higher value activities such as becoming vertical experts in their customer’s markets and analyzing their clients’ business data.This extra attention and analysis is transforming the role of a traditional accountant into a business advisor and takes customer service to the next level by developing strong counsel-focused relationships.
For instance, QX Accounting Services (QXAS) Ltd provides outsourced accounting, finance and other services to accountants and accountancy firms in the UK.
The outbreak of Coronavirus disease (COVID-19) has acted as a restraint on the accounting services market in 2020 as governments globally imposed lockdowns and restricted trade, thereby limiting the need for professional services.COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing.
The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia.Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected had a negative impact on businesses throughout 2020 and into 2021.
However, it is expected that the accounting services market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.
The countries covered in the accounting services market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, Vietnam.