Industry Insights
Financial Accounting & Tax Accounting
Financial accounting, a crucial accounting branch, involves recording, summarising, and reporting business transactions over time. Tax accounting, on the other hand, focuses solely on transactions affecting tax burden and proper tax calculation (Investopedia, 2023).
The UK’s accounting services industry, valued at £6.4bn, has grown significantly, especially in major cities like London, Manchester, and Birmingham. This boom reflects the rising demand for accounting services. The sector has diversified as businesses evolve, emphasising advisory and consultancy services. In 2022, consultancy fee income in the UK’s top 100 firms soared by 169%, reaching £3.5 billion, driven by businesses’ need for strategic decision-making (Accountancy Age, 2023).
Looking ahead, the industry’s revenue is set to rise further, fueled by improved economic conditions and increased business spending on accounting services. Higher M&A activity and IPOs will drive demand, expanding the industry’s client base (IBIS World, 2023).
Statistics
The Market size of accounting and auditing in the UK industry is £6bn
In April 2023, there were around 7,135 Businesses in the Accounting and auditing industry in the UK
The sector employs approximately 51,307 employees
(IBIS World, 2023)
Industry Challenges
The inflation rate is of particular concern and will likely suppress consumer spending
Disruptions to global supply chains, including high energy and material costs
The impact of legislative and regulatory changes on the market
How competitors adapt their business models to evolving client requirements
(Mintel, 2022)
Investment Opportunities
Artificial Intelligence
Accounting Software
Data Analytics and Forecasting Tools
Environmental, Social and Corporate Governance (ESG)