2024 Global Accounting Services Industry Report

The global accounting services sector continues to grow steadily, up from $652.32 billion in 2023 to $676.73 billion in 2024 at a compound annual growth rate (CAGR) of 3.7%. The market is forecast to see this growth continue in the next few years, surging at a CAGR of 4.4% to reach$804.27 billion in 2028. 

Segmentation

By Type:

• Payroll Services
• Tax Preparation Services
• Bookkeeping
• Financial Auditing
• Other Accounting Services

By Service Provider:

• Large Enterprise
• Small and Medium Enterprise

By End Use Industry:

• IT Services
• Manufacturing
• Financial Services
• Construction
• Others

Market Trends and Drivers

Global accounting firms have been benefiting from high demand, as there is an ongoing need for efficient and reliable accounting services. Growth also stems from market drivers that include globalization, outsourcing back-end operations, increasing R&D investments, strong economic growth in emerging markets, economic expansion in developed countries, and high productivity growth in low-income nations. As GDP rises, so do financial transactions, auditing, and M&A deals, which all raise demand for accounting services.

Widespread Internet usage is driving efficiency for accountants. As incomes increase around the world, global Internet usage is surging to where nearly 90% of households will have Internet access in 2029. That is compared with the existing level of just under 75% in 2024.

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The increasing adoption of artificial intelligence (AI) is also significantly impacting the accounting world. It is estimated that more than half of accountants favor AI-powered automation. In fact, AI’s share in the accounting industry is predicted to reach $4.79 billion this year. One of the reasons that AI technology is so prevalent in the accounting services sector is that it can save businesses money. It is forecast that it will save the financial services industry more than $1 trillion by 2030. Companies that have already adopted AI into their accounting processes report as high as 45% cost savings.

Technology is changing the industry as large amounts of data and numbers can be processed in a few clicks rather than manually sifting through tons of rows and columns.

Blockchain technology is also significantly impacting the accounting industry, which will reach an $868 million market share by 2025. This technology can transform accounting practices by implementing a decentralized and transparent ledger system. It allows for immutable financial records, so a transaction cannot be tampered with once a transaction is recorded. Blockchain also enhances transparency through a transparent and auditable data trail, which builds confidence for stakeholders and investors. Another benefit is how it can streamline processes and lower costs by automating manual tasks, reducing redundancies, and self-executing smart contracts. And finally, blockchain technology allows for real-time financial reporting by offering instant access to current financial data.

Regulatory reforms in the financial sector also drive the demand for accounting services. This includes the adoption of global minimum tax rules such as those of The Organisation for Economic Co-operation and Development (OECD), under which companies must adjust their tax strategies to comply with new regulations that aim to ensure that multinational enterprises pay a minimum level of tax regardless of where they operate. This is designed to reduce tax avoidance practices, such as moving profits to jurisdictions with lower tax rates.

Cybersecurity also plays a significant role in the accounting services industry. More focus on cybersecurity is driving the growth of the accounting services market, as firms can provide cybersecurity assessments to spot risks in a business’s systems and processes and develop plans to improve security.

The more innovative accounting services companies are implementing collaborative accounting to enhance client relationships. This advanced cloud-computing process enables accountants and clients to work on the same data simultaneously, irrespective of their global locations. Collaborative accounting allows for shared workflows that fundamentally change accounting processes' dynamics.

M&A

M&A deals in the accounting services industry have been active and competitive, a trend that is not expected to change anytime soon. Competition is very high among global accounting firms because moderate barriers to entry allow many players to operate effectively. Companies vie when it comes to price, quality of service, and reputation. A critical factor determining an accounting firm’s success is simply having the right team in place. Recruiting and retaining talented staff is a significant challenge in the industry as demographics change, and the need to resonate with younger generations requires added finesse. Before embarking on an M&A deal, steps you should take to prepare as a seller or buyer include prioritizing integration and having your financial documentation in order.

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