The world of accounting is complex and continuously evolving. To help you stay up-to-date, we've compiled 47 interesting accounting statistics from the industry summarized into some key topics that are worth knowing about. Accounting industry statistics can help you stay on top of the latest changes in your industry and help you stay informed.
Let’s dive in.
First, some interesting general stats about the accounting industry overall:
The accounting industry is one of the largest in the world.
And the industry is growing!
The large accounting market is shifting, though.
This shift brings upon many challenges for accounting firms.
Other significant challenges firms face include recruiting/retaining good employees, acquiring and retaining new clients, keeping up with technology, the overall economy, and clients' economic health. We will look at some interesting stats that have to do with many of these challenges.
There are also many accounting statistics regarding changing regulations.
The pace of legislative change has not slowed, and keeping track of legislative changes posed a problem for many firms.
Keeping up with legislative changes can be difficult, but there are ways to automate many time-consuming tasks, so more focus can be on tasks like these that are very important for your firm and your clients.
A significant contributor to accounting firm success is the right employees. A big challenge for accounting firms is recruiting and retaining good employees. Recruiting and retaining the right staff has never been more critical for success and it’s also never been more challenging. This is due to numerous reasons. For example, the changing demographics and the need to appeal to the younger generation.
This younger generation and existing accountants will need to adapt and learn new skills that are not traditionally taught in accounting programs to excel in the industry as it changes with technology and other client expectations.
Another critical aspect of retaining good employees is ensuring they are satisfied with their accounting jobs.
When looking at recruiting talent for accounting firms, some interesting stats look at diversifying the workplace and the importance of firm reputation.
Offering a competitive salary is also key to attracting and retaining quality employees.
However, these numbers can vary significantly depending on your industry, experience, skills, and location.
Since the pandemic, accounting firms are moving toward a more virtual work environment. Let’s check out some interesting accounting statistics on this.
Across the US, firms face a shortage of skilled staff. The “Great Resignation” ,has firms battling high turnover caused largely by pandemic burnout and changing professional preferences. All firms with cloud accounting solutions can now benefit from attracting talent and clients across broader geographic locations. It also allows workplace flexibility and better work-life balance. (Wolters Kluwer)
As accounting professionals, it's essential to understand what your clients need and expect. Accounting statistics in this area show exactly what that is.
Just as the workforce is changing, so are your clients as the next generation are business owners and need accountants who know what they’re looking for.
Here’s some important stats from the latest surveys about client expectations.
Your accounting firm's digital marketing and communication strategy should reflect this need for flexibility. For example, accounting firms could offer online appointment booking and/or easy-to-use software for gathering client information.
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Accounting firms need to expand their service offerings to meet client demands.
Forward-thinking firms are working to meet the evolving needs of clients. Expanding advisory and consulting services requires firms to move beyond a compliance mindset and empower professionals to make decisions and add value for clients.
So if you're looking to expand your business, it's important to consider what other services you could offer your clients.
Many firms — particularly large ones — expect to increase their focus on advisory in 2022, but interestingly, many also expect to increase the amount of time they spend on compliance work. To make up the difference, they expect to decrease the amount of time they spend on client administrative work. (Accounting Today 2022 Year Ahead Survey)
Offering these additional services will definitely add value to what you can offer your clients but training your employees to perform these services is very important.
The accounting profession is quickly adapting to new technologies, such as artificial intelligence to remain competitive.
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Like it or not, accounting is becoming more and more reliant on technology so if you’re not already using these technologies in your practice, it’s time to.
Technology will help improve efficiency, so you are able to add additional service offerings for your clients.
Perhaps your firm was an early adopter of technology but may not utilize it to its full potential.
Or maybe you feel like you don’t have the budget to implement the technology right now.
The trend of technology, especially in accounting, is here to stay, so your firm must be well-positioned to handle all of the changes in the future.
With this new remote work lifestyle emerging and the need to access information from anywhere at any time, the accounting software industry is moving towards cloud accounting software.
There you have 47 accounting statistics from the industry that accounting firm owners should know. Keep these in mind as you continue to grow your business, and remember that the accounting industry is constantly changing, so it's essential to stay up-to-date on the latest trends and accounting statistics!
Kathryn is a Chartered Professional Accountant with over 7 years of experience in both public practice and industry accounting. She has had the opportunity to work with a wide variety of individuals and companies, which gives her a unique perspective on what it takes to be successful in the industry. Kathryn loves all things business and productivity and has been able to combine her love for creating content into writing for accounting firms looking to improve their businesses.