Accounting Services Market Expected to Reach $1474.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Accounting Services Market," The accounting services market was valued at $628.41 billion in 2022, and is estimated to reach $1474.3 billion by 2032, growing at a CAGR of 9.2% from 2023 to 2032.

The constantly evolving and increasingly complex regulatory environment in accounting, including financial reporting, taxation, and auditing standards, drives the need for accounting services market. Clients rely on professional accountants to ensure compliance up-to-date regulations, reducing the risk of lawsuits and financial penalties. Frequent changes in tax laws at local, national and international levels create demand for tax planning, preparation and compliance services. Accountants help individuals and businesses optimize their tax liabilities while ensuring adherence to tax laws.

Moreover, the integration of technology into accounting services has transformed the industry. Demand for technically savvy accounting professionals continues to grow as the use of cloud accounting software, data analytics, artificial intelligence (AI), and automation continues to increase productivity and clients gain real-time financial insights. Furthermore, ongoing technological advancements drive growth in the accounting services market. Cloud computing, AI, and machine learning are transforming traditional accounting processes, enabling faster data analysis, predictive modeling, and real-time reporting. With the increasing reliance on digital platforms, data security and privacy have become paramount in the accounting services market. Thus, these are the major accounting services market trends.

The accounting services market is witnessing a significant shift towards digital transformation and automation. The trend of remote work has impacted the accounting services industry. Many accounting firms are adopting remote working models, leveraging technology to collaborate with clients and manage financial tasks efficiently. Further, the primary use of financial accounting is the preparation of financial statements, including balance sheets, income and cash flow statements These reports provide a transparent picture of an organization’s financial performance and position transparency, and enables employees, investors and other stakeholders to make informed decisions. In addition, accounting professionals use GST checking to identify and rectify errors, such as incorrect input tax credits, misclassified transactions, and missing data, in GST returns. This helps prevent penalties and legal issues related to incorrect reporting.

Further, tax laws and regulations are complex and constantly changing. Individuals and businesses often need professional help to navigate the tax code, ensure compliance, and improve their financial situation. Tax professionals are well aware of these complexities, and their expertise is in high demand. Hence, all the above fcatrors are driving the demand of accounting services market.

Furthermore, major accounting services market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in August 2023, The Morningstar Retirement group within Morningstar Investment Management LLC, a subsidiary of Morningstar, Inc., and ADP, are working together to offer more employees regardless of the size of the company they work for access to personalized retirement investment and savings advice through managed accounts. Moreover, in July 2022, Bloomberg tax & accounting and RSM US announced RSM as the first certified implementer of Bloomberg tax provision and Bloomberg tax fixed assets. The new certified implementer program (CIP) from Bloomberg tax & accounting will support successful implementation and use of Bloomberg tax provision and Bloomberg tax fixed assets by corporations. Such strategies are driving the accounting services market growth.

By end user, the finance sector segment attained the highest accounting services market size in 2022. This is owing to the fact that financial institutions are increasingly adopting digital technologies for their operations, requiring accounting services to adapt to digital financial reporting, data analytics, and cybersecurity measures.

On the basis of region, Asia-Pacific is considered to be the fastest growing region during the forecast period. This is attributed to the fact that accounting firms in the Asia-Pacific region are offering data security and privacy compliance services to ensure businesses adhere to regulations and protect sensitive financial information.

The pandemic has underscored the importance of financial security and prudent financial planning, making accounting services a vital component of financial well-being for both individuals and businesses. Moreover, the pandemic accelerated the adoption of digital tools and remote work practices within the accounting industry. Firms that embraced technology saw increased efficiency, improved collaboration, and the ability to provide uninterrupted services to their clients. However, the pandemic disrupted traditional audit procedures, making it challenging for auditors to perform physical inspections and assess certain aspects of businesses. This led to delays and additional complexities in the audit process. Furthermore, the economic fallout of the pandemic affected many clients, making it harder for them to pay for accounting services. Some businesses reduced their budgets for professional services, impacting the revenue of accounting firms. Therefore, the COVID-19 pandemic had a moderate impact on the accounting services market.

Key Findings of the Study

• By type, the financial auditing segment led the accounting services market in terms of revenue in 2022.
• By end user, the finance sector segment led the accounting services market share in terms of revenue in 2022.
• By region, North America generated the highest revenue in 2022.

The key players profiled in the accounting services market analysis are Ernst & Young Global Limited (EY), ADP, INC., KPMG International Limited, Delloite, Plante & Moran, PLLC, BDO, RSM International Ltd., McKinsey & Company, Grant Thornton International Ltd (GTIL), and PwC. These players have adopted various strategies to increase their market penetration and strengthen their position in the accounting services industry.