Accounting Services

Accounting Services grew exponentially over the next five years, fueled by global growth, rising financial prices, and an increasing number of new businesses. When revenue increased, new accounting firms entered the industry, and competition heated up.

To gain market share, the industry’s largest rivals have strategically absorbed smaller companies in order to widen their business offerings to include ancillary advisory services. Market income is expected to grow at a 0.9 percent annualized rate to $105.9 billion over the next five years.

The modest increase versus solid demand trends is largely due to the 5.3 percent slowdown expected for 2020 as a result of the COVID-19 (coronavirus) pandemic and subsequent contraction. Profits in the industry have also increased over the last five years as a result of increased consumer volumes and an increase in the total number of US households.

Accounting Services sector operators are accredited to audit public and private accounting reports to show compliance with commonly recognized accounting standards. Over the five years to 2020, the industry has grown steadily as sustained expansion, backed by a stable economy, has offset countercyclical demand caused by economic instability.

Prior to the time, bankruptcy and turnaround services provided some market for operators, while more robust and steady demand for audit and assurance services has helped the industry grow over the last five years. Demand for conventional sector services such as auditing, accounting, consulting, and tax planning has risen as a result of economic growth, the financial markets, and an increasing number of new companies.

For the next five years, market revenue is forecast to expand at a 0.9 percent annualized rate to $105.9 billion. The 5.3 percent downturn predicted for 2020 due to the coronavirus pandemic and the resulting slowdown is primarily responsible for the moderate rise against solid market patterns.

Many companies have partially ceased activity, and many people have been laid off or are operating from home. Revenue growth has been reversed as a result of this hampered market, along with individuals increasingly using online tax filing platforms such as TurboTax.

The Accounting Services sector is expected to remain in high demand for the next five years, as overall economic growth recovers after the coronavirus and ensuing recession. With a growing number of companies and the corporate profits, net private spending would rise, resulting in increased demand for conventional accounting services such as auditing and corporate tax assistance.

Furthermore, expanded strategic investment, such as mergers and acquisitions and initial public offerings (IPOs), would drive growth in industry services. The Trump Administration’s tax code reform, which was enacted in December 2017, is eventually set to take effect, boosting demand for sector operators over the forecast timeframe as companies and individuals attempt to comply with new reforms.

As a result, the sector is expected to benefit from increased demand for advisory services such as tax advice and financial transaction consultancy. Increased consumer wealth is expected to fuel demand from individuals requesting tax assistance; however, competition from self-service tax software is also expected to ramp up in the market for the provision of services to private citizens. Overall, the market is expected to expand at a 2.6 percent annualized rate through 2025, reaching $120.4 billion.

Firms in this field are accredited to audit public and private accounting reports to show consistency with commonly recognized accounting standards.

This industry’s certified public accountants (CPAs) offer a broad range of accounting services, such as auditing accounting reports, designing accounting processes, writing financial accounts, creating budgets, and offering accounting advice.