Global Accounting Services Market Size By Service Provider (Large enterprises and Small and Medium enterprise), By Type (Audit, Tax Accounting, Financial Advisory/Client Advisory), By End User (Finance Sector, Manufacturing and Industrial Sector, Retail Sector), By Geographic Scope And Forecast

Accounting Services Market Size And Forecast

The Accounting Services Market size was valued at USD 379,569.6 Million in 2021 and is projected to reach USD 687,306.1 Million by 2030, growing at a CAGR of 7.15% from 2023 to 2030.

The accounting services market has increasingly adopted & implemented the internet of things and blockchain-based technologies. These technologies help add advanced proficiencies, such as transparency and easy accessibility, to the accounting services platforms, further boosting the market growth. The Global Accounting Services Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Accounting Services Executive Summary

The demand for accounting services has shown significant rise in the past decade, which is mainly backed by growing awareness regarding outsourcing financial and accounting operations. Countries globally have mandated regulation and laws that forces companies to undergo audits through authorized accounting services providers to understand their financial position. Since 2001, International Financial Reporting Standards (IFRS) is part of major financial markets around the world that brings transparency, accountability, and promote economic efficiency by helping investors. Some of the common accounting services includes audit, tax, consulting, book keeping, payroll services, and others.

Outsourcing accounting services provide their clients with specialized service packages and are considerably more individualized. This makes businesses more cost-effective. Businesses do not need to worry about overspending on pointless services. Most companies across the world are looking for outsourcing in reaction to the expertise scarcity in accounting. This drives the demand for accounting services.

On the basis of service providers, large companies accounted for the largest market share in the global market whereas SMEs are projected to show promising growth in the forecast. Several statistics shows that a large count of the small and medium scale firms are projected to outsource the accounting services, which propels the segment growth. Based on the type, the audit segment emerged as the leading segment in 2021. Audit accounts for over 25% market share in 2021. Audit is essential in the business activities as it entails doing the statutory audit and inspection of the financial accounts. An impartial and fair judgement on whether the financial records and statements accurately reflect the organization’s real financial situation is provided via auditing. On behalf of regulators or shareholders, the auditors typically outside individuals or organizations perform the auditing process in accordance with the relevant legal requirements.

The global Accounting Services Market is highly fragmented with the presence of a large number of players. The global market is fairly competitive with several players that operates globally as well as locally. However, the market is mainly controlled by Big 4 companies (Deloitte, PwC, EY and KPMG) and tier 2 companies. Some of the major companies include PwC, Ernst & Young, Deloitte, KPMG, ADP (Automatic Data Processing Inc.), Grant Thornton, Plante Moran, RSM International, and BDO Global.

 Global Accounting Services Market Attractiveness Analysis

Accounting services is experiencing a scaled level of attractiveness in the North America. The North America area has a prominent presence and will account for a significant market share by 2030. U.S. accounted for the largest market share of 79.07% in 2021, with a market value of USD 119,465.75 Million and is projected to grow at the CAGR of 6.42%% during the forecast period. Asia Pacific is projected to grow at the highest CAGR of 8.46% between 2023 and 2030. This is mainly accounted to growing demand for accounting service outsourcing. Expanding businesses, with favorable scenario for foreign companies to enter the region due to high growth potential is pushing the demand for the market. China, India, South Korea, Japan and other Asian countries are emerging as the potential hub for IT, manufacturing, BFSI, and other industries, attracting the accounting service providers. This fuels the market growth.

 Global Accounting Services Market absolute Market Opportunity

The above diagram represents the absolute market opportunity for the Global Accounting Services Market. Global Accounting Services Market is estimated to gain USD 23,540 Million in 2023 over 2022 value, and the market is projected to achieve a total opportunity of USD 272,013.88 Million between 2021 and 2030. The market is expected to show strong growth in the forecast period as the new technologies such as Internet of Things and blockchain are increasingly being adopted and implemented in the accounting services market. These technologies help add advanced features such as transparency and easy access to accounting services platforms, further driving market growth. These technologies can assist accountants in clarifying their organizations’ resources and obligations and free up resources to focus on planning and valuation rather than recordkeeping.

Global Accounting Services Market Outlook

Digital technology, precisely information, and communications technologies and their application to e-commerce, e-business, and e-marketing have had a significant impact on business at a global level. The spread of digital technologies has been a substantial opportunity for small to medium enterprises. The opportunity comes from the capability of SMEs to access digital technologies that were formerly only available to large companies and to use these to compete in international markets. Besides, online platforms are central to the development of economies and societies. In the last decade, they have become ubiquitous, affecting most economic sectors and social dynamics across the globe. Online platforms can be pure intermediaries, employers, direct service providers, lenders, or a combination of the above. It is challenging to overstate their role in the rapid development of the internet economy from a low starting point to the present relevant reach and influence. For instance, e-commerce as a percent of total retail sales in the United States has grown from 0.6 percent in 1999 to 16.1 percent in the second quarter of 2020 (as per the U.S. Census Bureau, 2020). The global COVID-19 pandemic and the related conditions for social distancing have accelerated these trends.

For years, executives have recognized the inadequacy of conventional planning in which they planned a year down the line, promised a result, and prayed they had guessed right. Meanwhile, board rooms and leadership teams dealt with the effects of blown spreadsheets and forecast fantasies. While ERP-based reporting, excel spreadsheets, and cumbersome data lakes were insufficient for executives who had to contend with the ambiguity and uncertainty of shifting global dynamics, they were adequate for those who were comfortable working on instinct, not information. But as the world rapidly changes, stakeholders at all levels demand a different way to plan and account for financial performance, scrutinizing all aspects of the business from the supply chain to the shop floor to finance. Being agile is about responding quickly to changes and finding ways to operate more efficiently. Agile is almost a requirement for every accounting firm to succeed in the future.

Accounting cyber security is a growing issue. It’s a nightmare for accountants and organisations because financial data is a primary target for hackers and data theft attempts. While the cloud has made accounting more effortless to access and manage, it’s also opened up many more threats than conventional paper-pen bookwork. In simple terms, hackers and cybercriminals can target and penetrate even vital IT infrastructures. But what’s even more depressing and dangerous is that internal accounting data threats are even more costly. In addition, cyber security and data security are linked to the accounting life cycle. For instance, besides hacking, financial data threats can contain errors and unintentional data breach that necessitates sophisticated solutions to safeguard data. Accountants and accounting firms know that financial data breaches endanger livelihood, customer relations, business growth, and more. Similarly, the exact account details one uses to track debits and credits are vulnerable to malware and unethical activity.

The accounting services market has increasingly adopted & implemented the internet of things and block chain-based technologies. These technologies help add advanced proficiencies, such as transparency and easy accessibility, to the accounting services platforms, further boosting the market growth. Gartner has foretold that by 2020 there will be around 26 billion connected devices, including an evaluated 7.3 billion smartphones, PCs, and tablets, one for each person on the globe. The Internet of Things has taken the world by storm and can modernize every industry, and BFSI is no exception. The increasing influence of IoT is heavily impacting the accounting industry. As per the American Institute of Certified Public Accountants, IoT has the potential to revolutionize the way firms gather data – and, in the process, transform many facets of accounting and auditing.

Porter’s Five Forces Analysis

Porter’s five forces framework provides a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. In the case of the Global Accounting Services market, the bargaining power of buyers is moderate, and the threat of substitutes is moderate owing to the availability of substitutes. The degree of competition in the Accounting Services market is high as top key players accounted for the greater share. The competitive environment prevailing in the Accounting Services market can be analyzed through Porter’s Five Forces analytical framework.

THREAT OF NEW ENTRANTS

The threat of new entrants in the Global Accounting Services market is considered to be low to moderate. The Accounting Services market is fairly saturated and competitive due to the presence of established players such as PwC, Ernst & Young, Deloitte, and KPMG among others. High capital investment, data security and privacy issues, and strong intense competition make the threat of new entrants’ low to moderate in the Global Accounting Services market.

THREAT OF SUBSTITUTES

The threat of substitutes for the Global Accounting Services market is considered to be moderate owing to the availability of substitutes. However, Accounting Services have evolved from traditional methods to innovative software’s. Different software’s are available providing wide range of accounting features. For instance, QuickBooks is a market leader in accounting software. Also, this softwareis very cost effective.

BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is considered to be moderate as powerful suppliers extract higher prices from the firms. Companies depend on a large number of suppliers as they need to maintain a supply chain to acquire desired profits. Suppliers with a strong position in the market can decrease the profit of other key players. Powerful suppliers in the market use their position to demand higher prices from firms in the market. Higher supplier bargaining power has the overall effect of decreasing the overall profitability of Accounting Services companies.

BARGAINING POWER OF BUYERS

The bargaining power of buyers is considered to be moderate due to a large number of end users present in the market. Accounting Services is mostly consumed in IT Services, Manufacturing, Financial Services, construction, among others. However, the bargaining power of buyers may increase owing to the bulk purchase as well as offers given by key players who are operating in the Global Accounting Services market, and they get a strong customer base.

INTENSITY OF COMPETITIVE RIVALRY

The competitive rivalry is high as the top key players accounted for the greater share of the Global Accounting Services market. Moreover, the companies with innovation capabilities are creating high competition with new technology innovation and development. The strong presence of established players who are serving this industry for the last few decades creates healthy competition in the market. Key players such as PwC, Ernst & Young, Deloitte, and KPMG, among others account for a higher market share in the Global Accounting Services market. Key players are adopting growth strategies such as business expansion, merger and acquisition, and technological development to gain market share in the Global Accounting Services market

Value Chain Analysis

The value chain acts as a bridge for connecting suppliers, manufacturers, intermediaries, and end-consumers of a specific commodity or service. A service organization is viewed as a system made up of subsystems, each with inputs, transformation processes, and outputs. Resource acquisition and consumption are involved in inputs, transformation processes, and outputs. These resources include cash, labor, supplies, buildings, land, and administrative and managerial services. Costs and profits are determined by how value chain operations are performed. The structure of the Accounting Services market is full of volatility at every level of the supply chain management with several structural, operational, and performance differences. The industry includes several structured entities, which are highly organized, capital-intensive, with strong brand value in the market consisting of small-medium scale, non-integrated manufacturing companies.

Inbound logistics is part of relationships with suppliers and all the tasks necessary to receive, store, and distribute inputs. Operations refer to all the required tasks to convert information into outputs. Outbound logistics include all the tasks required to gather, store, and distribute the work. Marketing and sales efforts educate consumers about goods and services, encourage them to buy them, and make the transaction easier. All the tasks necessary to ensure the service continues to serve the customer efficiently after it has been purchased and delivered are referred to as service. The activities involved in finding, selecting, training, advancing, paying, and letting go or laying off employees are called human resource management. Technological development refers to a corporation’s tools, resources, processes, software, and technical expertise to convert inputs into outputs. Infrastructure, which includes services or departments including accounting, legal, finance, planning, public affairs, government relations, quality assurance, and general management, supports the organization’s needs and connects its numerous sections. In every physical facility, Accounting Services follow the eight steps of the accounting cycle, which are as followsidentifying transactions, recording transactions in a journal, publicizing the unadjusted trial balance, the worksheet, adjusting journal entries and financial statements, and concluding the books. It carries out the measurement, processing, and communication of financial information.

Global Accounting ServicesMarketSegmentation Analysis

The Global Accounting ServicesMarketis segmented on the basis of Service Provider, Type, End User, and Geography.

Accounting Services Market, By Service Provider

• Large Enterprises• Small and Medium Enterprise

To Get a Summarized Market Report By Service Provider-

On the basis of Service Provider, the Global Accounting Services Market has been segmented into Large enterprises and Small and Medium enterprise. Large enterprises accounted for the largest market share in 2021. The large enterprise accounted for the largest market share in the global accounting services market. The term “Large Enterprise” refers to a variety of firms, ranging from small sole proprietorships to massive multinational conglomerates with thousands of employees. Small-scale businesses, microbusinesses, large-scale industries, public enterprises, and multinational corporations are the different categories of organizations based on the size of their operations. On the basis of the number of workers working in an organization as one of the main distinguishing elements, small and medium-sized businesses can be differentiated from large businesses. Large businesses typically have over a thousand employees and a greater range of business locations. These businesses have a sizable corporate network as well as numerous network revenue streams.

Accounting Services Market, By Type

• Audit• Tax Accounting• Financial Advisory/Client Advisory• Internal Audit• Financial statement Preparation• Reviews• Compilation• Others

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By Type, Accounting Services are classified as Audit, Tax Accounting, Financial Advisory/Client Advisory, Internal Audit, Financial statement Preparation, Reviews, Compilation and Others. Audit accounted for the largest market share in 2021, and is projected to grow during the forecast period. Tax Accounting was the second-largest market in 2021. Accounting audit service providers make sure that their clients’ financial data is handled in line with the regulations and laws governing accounting. Both public and private businesses frequently decide to cooperate with auditors to attest that no unethical activity, such as embezzlement or the abuse of cash, is taking place within the company. Investors and staff are reassured that the business is being managed effectively thanks to this technique.

Accounting Services Market, By End User

• Finance sector• Manufacturing and Industrial sector• Retail sector• Public sector• IT and Telecom Industry• Others

By End user, Accounting Services are classified as Finance sector, Manufacturing and Industrial sector, Retail sector, Public sector, IT and Telecom Industry, and Othe