The accounting services category is anticipated to grow at a CAGR of 11.45% from 2023 to 2030. North American region accounts for the largest category share followed by Europe and APAC. Factors such as changes in standards of financial reporting, outsourcing of back-end operations to low-cost economies, and rise in research & development investments are driving the category growth. One of the most significant trends is the AI and cloud-based solutions of accounting services.
Hyper connectivity, supercomputing, cloud computing, and cyber security are particular technology trends driving the finance function and finance & accounting transformation. It has been observed that companies are adopting these technological advancements while offering accounting services to their clients. For example,
• PricewaterhouseCoopers (PwC) created GL.ai, a programme that assists their clients in identifying irregularities in the general ledger
• Cloud accounting software, such as Xero and QuickBooks Online, use live bank feeds, allowing an increasing number of bookkeeping entries to be automated
• MYOB Advisor is an Australia-based software provider that provides natural descriptions of a business's financial position and insights such as cash flow visualization and top customer views to help clients manage their high-value relationships
• In March 2022, GTreasury partnered with Infor to offer an integrated treasury solution built on the Azure platform, including cash management, payments, debt and investment management, risk and exposure management, hedge accounting, and reporting functionality
• In 2022, Intuit Accountants launches Intuit Tax Advisor which integrates Tax Prep and Advisory, a new insights tool for tax professionals to deliver tax advisory services. It integrates with Intuit Accountant software, Lacerte, and ProConnect Tax to provide insights and strategies for clients
• EY's Canvas program allows customers to check in on the status of an audit as it happens and analyze risk areas, allowing auditors to make the most use of their time
Order your copy of the Accounting Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
The accounting services category is segmented by type into payroll services, tax preparation services, and bookkeeping, financial auditing, and other related services. Bookkeeping, financial auditing and other accounting services are the largest segments which are estimated to account for 83% -85% of the total in 2022. In terms of end use industry, this category can be classified into IT services, manufacturing, financial services, construction, and others. IT services is expected to be the fastest growing segment. On the basis of service provider, this category can be segmented into large enterprise and small & medium enterprise. The large enterprise segment is projected to account for 57% - 60% of the total revenue in 2022.
This category is highly fragmented, with a significant number of regional firms. In 2022, the top ten competitors accounted for 35.92% of the overall share. PwC, Ernst & Young, KPMG, Deloitte, BDO, and others are among the category's major participants. All the major players are expected to continue pursuing M&A to increase their market share by purchasing smaller and profitable companies. However, new regional players will keep entering the market due to growing demand for industry services.
This is a labor-intensive sector that requires highly skilled people to provide audits and assurance services. By 2022, the industry is predicted to invest only USD 0.03 - USD 0.05 in capital equipment for every USD 1.00 spent on labor, resulting in a low level of capital intensity. Wages are the industry's major expense, estimated to account for 35% - 40% of sales in 2022. Wage expenses vary according to the size of the business. Non-partner accountants at medium and large-sized businesses in this area are often paid in salary rather than as a portion of profit.
Organizations use three pricing models: hourly billing, fixed fee billing, and value-based pricing model. With advent of technology, hourly billing is not widely used as more work can be done in same amount of time. Value-based pricing model involves charging clients based on the value they perceive in a service, unlike fixed billing, where clients may have to pay more than what they think they should.
Browse through Grand View Research’s collection of procurement intelligence studies:
• ATM Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Database Management Systems Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
Accounting Services Procurement Intelligence Report Scope
• Accounting Services Category Growth Rate: CAGR of 11.45% from 2023 to 2030
• Pricing growth Outlook: 5%-12% (annual)
• Pricing Models: Value pricing model, fixed fee pricing model, Hourly billing model
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier selection criteria: Tax, Consulting, Audit & Assurance, Digital Services, Mergers & Acquisitions, Risk Advisory, Legal Services, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Key companies
• Ernst & Young
• PricewaterhouseCoopers
• KPMG
• Deloitte Touche Tohmatsu Limited
• BDO
• RSM
• Grant Thornton
• Nexia International
• Crowe Horwath
• Baker Tilly
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
