90,000 Firms with Combined Annual Revenue of $65 Billion

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.


Advertisement


Thousands of executives with financial reporting responsibilities use the Comperio on-line library to access the type of information and interpretive guidance PricewaterhouseCoopers' own professional audit staff use around the world. Key content areas include guidance from the FASB, EITF, PCAOB, SEC, and others as well as PwC's interpretive guidance. Get more information and sign up for a complimentary 30-day trial.


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 – 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.

You may like these other stories...

AgFeed agrees to pay $18 million to settle SEC accounting fraud caseMichael Rapoport of the Wall Street Journal reported on Monday that AgFeed Industries Inc. has agreed to pay $18 million to settle US Securities and...
Hertz and Icahn make peaceThere won’t be any nasty, protracted proxy battle between Hertz Global Holdings and activist investor Carl Icahn. The rental car chain agreed last Thursday to give Icahn – who has...
Following other recent high-profile hacking events, investigators discovered yesterday that hackers broke into the draft work paper files of several famous CPA firms. Revealing images of the scantily clad documents have been...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.