Accountancy and allied services market presentation

50 %
50 %
Information about Accountancy and allied services market presentation

Published on November 18, 2016

Author: Garygids

Source: slideshare.net

1. UK accountancy and allied services market JULY 2016 www.irn-research.com A free presentation from IRN Research

2. About IRN Research www.irn-research.com  IRN Research is a full-service research agency with research capabilities from small-scale research requests to large-scale international projects. We utilise a range of research techniques, e.g. desk research, telephone/online surveys, face-to-face interviews, focus groups, and can provide a full results analysis. We undertake a wide range of research for professional services firms including:  Customer Experience Research: We identify what your customer thinks of your company and brand and what drives such perceptions.  Customer Segmentation: We identify and assess how to target customer sub-groups, using a variety of data including attitudinal and usage information plus consumer demographic and business structure data.  Market Understanding: We seek to understand the market you operate in by running usage and attitude surveys and undertaking desk research to come to a clear understanding of your customer’s needs and potential growth opportunities.

3. Structure • In 2015, just over 41,000 firms were active in the accountancy and allied services market, collectively employing over 300,000 individuals. • Over eight-in-ten firms engaged in the market undertook accountancy and audit activities. • Most accountancy and allied service firms serve a local catchment area with only the larger firms serving a regional or national market. As such, most firms active in the market are small in size: over 90% employ fewer than 10 people

4. Structure 0-49k 29% 50k-99k 31% 100k-249k 25% 250k-499k 7% 500k-999k 4% 1m+ 4% Percentage of Businesses by Turnover (£000)

5. Structure

6. Structure  While the industry is dominated by small companies, the big four players – PWC, Deloitte, EY and KPMG – collectively account for 42% of the industry turnover. * Formerly Baker Tilly ** Including Chantrey Vellacott DFK 0.4% 0.6% 0.9% 1.3% 1.7% 2.2% 8.4% 8.6% 11.7% 13.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Moore Stephens** Mazars Smith & Williamson RSM* BDO Grant Thornton UK KPMG EY Deloitte PwC % of turnover, 2015 Share of industry turnover, 2015

7. Structure • It’s a dynamic market with many new businesses entering the market each year and the number of firms having risen by around 26% between 2011 and 2015 • One-third of firms started in business in the last four years • London and the South East account for 43% of accountancy and audit businesses 28,740 30,180 30,410 32,480 34,255 3,290 3,945 4,405 4,865 5,760 875 1,025 1,200 1,320 1,420 32,905 35,150 36,015 38,665 41,435 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2011 2012 2013 2014 2015 Number of firms Accounting and auditing activities Bookkeeping activities Tax consultancy

8. Market Size and Trends • Industry has a collective turnover of over £23 billion. • Market turnover moves closely in sync with the trends in the UK economy. • Between 2012 and 2015, turnover grew at an annual average rate of 3.5% but in 2016 IRN Research anticipate growth of just 0.3%. • Brexit and new auditing rules will slow business turnover in 2016

9. Market Size and Trends £22,073 £21,016 £21,509 £22,417 £23,287 £23,348 £19,500 £20,000 £20,500 £21,000 £21,500 £22,000 £22,500 £23,000 £23,500 £24,000 2011 2012 2013 2014 2015 2016 (est) Industry Turnover (£m), 2011-2017

10. Impact of Brexit • The UK market is very self-contained - firms export only around 10% of their services and only 3% of the domestic market is supplied by imported services • But Brexit is anticipated to have a negative impact on the market with the scale of the Brexit hit varying according to the trade deal the UK arranges with the EU • The biggest consumers of accountancy services in the UK are financial and professionals services firms who will be hit by leaving the EU • In IRN Research’s report The Impact of Brexit on Consumer Financial Services, IRN laid out three scenarios for the future course of the UK economy: • Scenario 1 (No-Brexit): Brexit did not happen and the economy grows in the fashion laid out by the Office of Budget Responsibility in its March 2016 forecasts • Scenario 2 (EEA): The UK arranges a European Economic Area style deal with the EU • Scenario 3 (WTO): The UK arranges a World Trade Organisation style deal with the EU

11. Impact of Brexit £21.0 £21.5 £22.4 £23.3 £24.1 £24.6 £25.3 £26.0 £26.7 £27.4 £25.0 £25.9 £26.6 £23.9 £23.9 £24.1 £24.4 £25.3 £26.0 £20.0 £21.0 £22.0 £23.0 £24.0 £25.0 £26.0 £27.0 £28.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 No-Brexit Brexit (EEA) Brexit (WTO) Turnover (£ billion), 2012-2021

12. Key issues  Audit Rotation and new rules  Cloud outsourcing of the accounting function  Move from providers of data to providers of consultancy services  Negative public perceptions of tax planning and avoidance  Advent of online tax accounts by the HMRC from 2017

13. IRN Research www.irn-research.com  To download a copy of the Accountancy and Allied Services Market report visit http://www.irn-research.com/wp-content/uploads/2016/07/ACCOUNTANCY- AND-ALLIED-SERVICES-MARKET.pdf  To discuss your research requirements contact Gary Giddings – ggiddings@irn-research.com

Add a comment