The accounting and tax preparation industry in the United States includes approximately 90,000 firms with combined revenue of $65 billion, according to Research and Markets, a leading source for international market research and market data, headquartered in Dublin, Ireland.
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Although the top companies are widely known, most firms are small, having annual revenues under $1 million, according to the Research and Markets http://www.researchandmarkets.com/reports/c36297/Accounting Services â Industry Profile. Large, local firms may have annual revenues between $5 and $10 million. The 50 largest firms, including top players KPMG, PricewaterhouseCoopers, Ernst & Young, H&R Block and Deloitte Touche Tohmatsu, have less than 50 percent of the market.
Major services provided by the industry include tax preparation; bookkeeping and accounting; financial auditing; and tax consulting. Tax preparation accounts for 35 percent of the industry's revenue, bookkeeping for 20 percent, tax consulting for 10 percent and other services for 15 percent. Demand for services depends on business formations, the increasing complexity for higher personal income. Firms may concentrate on providing services to businesses, individuals, or both.
The profitability of individual firms depends on the effective marketing and the right mix of services. Large firms can provide a range of services to large corporate customers and have the resources to serve customers with many locations. Midsized firms can effectively compete for large customers if they have special expertise, and by specializing in particular industries. Although the industry is labor-intensive, the high value of services produces annual revenue per employee of about $175,000 at midsized firms.
The U.S. Accounting Services Industry Profile is the latest offering from Research and Markets. These easy-to-use, quarterly industry profiles synthesize information from hundreds of sources providing invaluable information about the target market, highlighting critical industry statistics and issues, changes that have taken place since the last quarterly update and key concerns that can have negative or positive impacts on investments.