Businesses have increasingly sought to restructure, which requires accounting services for due diligence and auditing
Melbourne, Australia (PRWEB) November 14, 2014
The Accounting Services industry's revenue has shown strong growth over the past five years, shrugging off any lingering effects of the global financial crisis on professional service companies. According to IBISWorld industry analyst Sebastian Chia, “over the past five years, businesses have increasingly sought to restructure, which requires accounting services for due diligence and auditing.” The industry has expanded its advisory services as professional services firms have sought new ways to increase profit. Tax and auditing services have remained a source of dependable earnings for firms in the industry, as clients have sought to become increasingly competitive and cost-effective amid challenging conditions. Industry revenue is estimated to increase by an annualised 3.3% over the five years through 2014-15. Revenue is forecast to grow by 3.1% over 2014-15, to reach $17.0 billion.
Consolidation in many professional services industries has increased, as businesses have sought to expand their client bases and become more competitive. This has been evident in the Accounting Services industry, with firms acquiring specialists to assist with specific growth product segments. The outlook for the Accounting Services industry is expected to continue improving. “Better business conditions in the Australian economy, such as rising consumer spending and business confidence, will provide operators with new work,” says Chia. New regulations will provide greater transparency and consistency in reporting, and further consolidation is expected. Profit margins are expected to remain stable, although some declines are possible due to increased competition.
The Accounting Services industry has a low level of market share concentration. The four biggest players, PricewaterhouseCoopers (PwC), Ernst & Young, Deloitte and KPMG dominate the industry through their tax and audit services. These firms also provide consultancy services and release publications and submissions with high-profile clients. This builds reputation throughout the industry. Smaller companies, such as WHK Group and BDO, also have good reputations while servicing a large number of small to medium enterprises. Small and medium firms represent a growing market for the industry. The industry remains fragmented due to the large number of sole proprietors operating in the industry as accountants. There has been greater consolidation in the industry over the past five years, as businesses were bought out and high wages paid by large firms to attract more staff.
For more information, visit IBISWorld’s Accounting Services industry in Australia report page.
Firms in this industry provide accounting, auditing and bookkeeping services. The services provided relate to all areas of taxation, financial reporting and auditing. Many firms also offer business advice and assistance.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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