Accounting Services Market Characteristics
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 service involves summarizing, analysing, 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.
Competitive Landscape of the Accounting Services Market
Major players in the global accounting services market include PwC, EY, Deloitte, KPMG and BDO International.
Accounting Services Market Size
The accounting services market size is expected to reach $1.6 trillion by 2022, significantly growing at a CAGR of around 6% during the forecast period. The growth in the accounting services market is due to increased mergers and acquisitions (M&A), technology stocks performance and financial reporting standards transition.
However, the market for accounting services is expected to face certain restraints from several factors such as weak wage growth in developed economies, accounting scandals, inconsistency in service delivery, automation affecting small and medium accounting firm, and reduction in free trade.
Accounting Services Market Segmentation
The global accounting services market is further segmented based on type and geography.
By Type - The global accounting services market is further segmented into payroll & bookkeeping services, tax preparation services and other accounting services, among these segments, the payroll & bookkeeping services market accounts for the largest share in the global accounting services market.
By Geography - The global accounting services is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, North America accounting services market accounts the largest share in the global accounting services market.
Trends in the Accounting Services Market
Increase in outsourcing at accounting firms, accounting service companies collaborating with technology companies and digital tax economy evolution are the major trends witnessed in the global accounting services market.
Potential Opportunities in the Accounting Services Market
With emerging markets growth, technology development, regulatory reforms the scope and potential for the global accounting services market is expected to significantly rise in the forecast period.