The accounting industry is a vital part of the global economy, and knowing current accounting industry statistics and trends is important in order to make informed decisions about the future, providing essential financial services to businesses and individuals.
In this article, we will provide an overview of the latest accounting industry statistics, including information on the size and growth of the industry, accountant demographic characteristics, and the industry’s key challenges. We will also explore the implications of these statistics for businesses and individuals who use accounting services.
Accounting Industry: The Most Important Statistics
For 51% of firms, the biggest challenge is keeping up with regulatory change.
62% of accounting professionals agree that today’s accountancy training program will not be enough to run a successful practice by 2030.
General accounting industry statistics
There are over 1,099,751 accountants currently employed in the US alone.
Far fewer employees are working remotely now than in 2020, only 14%, vs 37%.
36% of finance and accounting professionals express satisfaction with all aspects of their job.
43% of Monster survey respondents agree that there are more job openings now than there were a year ago, and 46% are willing to relocate for the right opportunity.
A popular global employment website Monster.com receives a new finance-related resume every 100 seconds and finance jobs are viewed more than 5.6 million times a month.
Robert Half reports, that 41% of accounting and finance professionals get the most career satisfaction from solving problems, for 22% it’s working with numbers. 17% of respondents like making strategic recommendations for the business, and learning new technologies/software (9%).
Around 70% of small businesses don’t have an accountant, and more than half of those businesses rely entirely on their owner or manager to handle their finances.
Across the United States, 79% of accountants say that client expectations have expanded to include the provision of business and finance consultancy. 86% say clients are increasingly demanding greater flexibility within their budget to access the services of most importance to their business.
North America is the largest region in the global accounting services market, accounting for 43% of the market (in 2020). Western Europe is the second-largest region, accounting for 35% of the global accounting services market. Africa is the smallest region in the global accounting services market.
The leading firms in the US are the Big Four global accounting and auditing firms: Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG. In 2021, these companies reported a combined revenue of over 167 billion USD and employed almost 1.2 million people worldwide. Just over 56 billion of their combined revenue was generated from the US market, according to Statista.
In 2021, there were 1.32 million accountants and auditors and 1.51 million bookkeeping, accounting and auditing clerks employed in the US. California is the state which employed the most accountants and auditors, but it was the District of Columbia which paid its accountants and auditors the highest wages.
Accounting industry demographic statistics
61.8% of all accountants are women, while 38.2% are men, as reported by Zippia.
The most common degree for accountants is a bachelor’s degree, 71% of accountants earn that degree. 12% of accountants have an associate degree, and 12% have a master’s degree.
The average age of an employed accountant is 43 years old.
The most common ethnicity of accountants is White (61.1%), followed by Asian (15.0%), Hispanic or Latino (10.9%) and Black or African American (8.6%).
The technology industry is the highest-paying for accountants.
The main challenges in the accounting industry
According to Wolters Kluwer’s report, for 51% of firms, the biggest challenge is keeping up with regulatory change.
The pace of legislative change has not slowed, and keeping track of legislative changes posed a problem for more than 50% of surveyed firms. Despite these challenges, 36% of small firms and 45% of large firms reported this year’s tax season was somewhat or much better than last year, as reported by Wolters Kluwer.
76% of accountants agree that it is more challenging to find a job now than it was a year ago, and that the job market is saturated with qualified finance talent. Only 20% agree that employers are willing to provide higher compensation.
41% of owners and managers handle accounting and finance themselves, and another 30% do everything in-house. 13% of firms rely solely on an external accountant, and 17% use both internal and external accounting resources.
Technology in the accounting industry
56% of accounting professionals cite the increased productivity allowed through technology advances as the main benefit of technology, with a further 27% viewing the time-saving aspect as its most important value, as it relates to allowing them to focus on customers.
94% of large firms and 90% of small firms are looking to technology to help achieve an improved tax season.
Technology is helping 60% of large firms with staff engagement and morale — two factors critical to retaining staff.
43% of surveyed firms indicated they are making moves to downgrade their brick-and-mortar presence and/or transition to a virtual-only presence.
91% of firms agree that technology allows them to focus on their clients or simply be more productive. Only 7% of small firms and 2% of large firms believe they are 100% maximizing the value of their current technology.
Accounting & CPA firms earn higher year-after-year revenue and acquire 5x more customers with cloud-based accounting. 61% of users are planning to transform their accounting software to Cloud. 77% of users say they experienced positive results after purchasing Cloud accounting trends.
Future of the accounting industry
The global accounting services market is expected to reach 735.94 billion USD in 2025 at a CAGR of 6%.
90% of accountants worldwide believe there has been a cultural shift in accountancy.
Overall expectations for revenue growth are roughly the same as in the last year, with 18% of firms expecting growth in the high single digits, and 20% expecting growth of between 1 and 3%.
66% of firms don’t plan to be hiring any fully remote staff going forward. Even among large firms, which are usually more open to remote staff, 41% ruled out any future remote hires.
62% of accounting professionals agree that today’s accountancy training program will not be enough to run a successful practice by 2030.
82% of accountants consider recruiting from a non-traditional background.
63% of companies are training or planning to train around financial business advisory services.
Cloud accounting is on the rise, with the cloud accounting software market expected to reach 4320 million USD by 2024.
81% of firms surveyed by ConvergenceCoaching expect to have an increase in the number of people working remote post-pandemic, while 30% foresee shrinking their office footprint, and 62% expect to make no change. 55% of respondents reported they have developed (29%) or are working on (26%) remote internship programs.
Supplementary Statistics
Employment in the accounting industry is projected to grow 4% from 2019 to 2029.
This statistic is a crucial indicator of the future of the accounting industry, as it provides insight into the potential for growth and development in the field. It is an important piece of information for anyone interested in the accounting industry, as it can help them make informed decisions about their career path and the potential for success in the field.
The global accounting market size was valued at $119.41 billion in 2020.
This serves as a reminder of the importance of accounting in the global economy, and the potential for growth and development within the sector. It also provides a benchmark for the industry, allowing for comparison of the current market size to that of previous years.
Accountants and auditors earn a median annual wage of $73,560 in 2020.
Accountants and auditors are well-compensated for their work, and that the industry is a viable career option for those looking to make a good living. It also serves as a reminder of the importance of accounting and auditing in the business world, and the need for qualified professionals to ensure accuracy and compliance.
84% of US business owners cite bookkeeping and taxes as their top accounting challenges.
This highlights the need for reliable and efficient bookkeeping and tax services, which can help business owners manage their finances and ensure compliance with the law. This statistic is a reminder of the importance of accounting services in the business world, and serves as a reminder of the need for businesses to invest in quality accounting services.
The accounting software market size is expected to exceed $12.6 billion by 2026.
The industry is growing rapidly and is expected to continue to do so in the coming years. This is an important indicator of the health of the accounting industry and provides valuable insight into the future of the sector.
60% of SME owners say that paperwork and administration cause late nights during tax filing season.
This highlights the burden of paperwork and administration that can lead to long nights and sleepless nights for business owners. It is a stark reminder of the importance of having a reliable accounting system in place to help alleviate the stress of tax filing season. This statistic is a powerful reminder of the need for businesses to invest in the right accounting solutions to make tax filing season easier and less time-consuming.
Over 50% of accountants believe the use of cloud computing will create new opportunities for growth.
The majority of accountants recognize the potential of cloud computing to open up new avenues of growth and development. This is an important insight for anyone looking to stay ahead of the curve in the accounting industry, as it suggests that cloud computing is likely to be an important factor in the future of the industry.
22% of accountants see the biggest impact of technology advancements in data analytics.
A significant portion of accountants recognize the potential of technology advancements to revolutionize the way they work. This highlights the need for accountants to stay up-to-date with the latest technology and data analytics tools in order to remain competitive in the industry.
In 2021, the largest market segment in the accounting services industry is tax preparation services at 32.2%.
Tax preparation services are the most sought-after services in the industry, making up a significant portion of the market. This information can be used to inform decisions about the direction of the industry, as well as to inform strategies for businesses looking to capitalize on the demand for tax preparation services.
The Big 4 accounting firms account for approximately 37.9% of the accounting industry’s market share in the US.
This highlights the sheer dominance of these firms in the market, and serves as a reminder of the importance of staying competitive in the industry.
Annual salary growth in the accounting industry was 1.6% from 2004 to 2020.
While the industry has seen some growth, it has been relatively slow and steady. This is important to consider when looking at the overall health of the accounting industry, as it provides insight into the industry’s ability to remain competitive and relevant in the current economic climate.
US accounting services have a collective annual revenue of about $155 billion.
There is an immense economic impact of the sector, with $155 billion in annual revenue, and the sheer number of businesses and individuals that rely on the services of accounting professionals. It is a powerful reminder of the importance of the accounting industry and the vital role it plays in the US economy.
Out of 10 CFOs, 9 believe outsourced accountants will play a greater role in the accounting industry in the next 10 years.
The majority of CFOs believe that outsourced accountants will become increasingly important in the next decade, which could have a significant impact on the industry as a whole. This could mean more opportunities for those looking to enter the accounting field, as well as a shift in the way accounting services are provided. It is an important statistic to consider when discussing the future of the accounting industry.
Conclusion
The accounting industry is a rapidly growing and evolving field. With the increasing demand for financial services, the industry is expected to continue to grow in the coming years. The industry is also seeing a shift towards more digital processes, as well as an increase in the use of automation and artificial intelligence. These changes are allowing accounting professionals to become more efficient and effective in their work. With the right strategies and tools, accounting professionals can stay ahead of the curve and remain competitive in the industry.
Resources
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