14 Bookkeeping Statistics You Need to Know

Here is our list of the best bookkeeping statistics. 

The field of bookkeeping is always evolving with new technology and trends. As a result, it is critical to stay in the loop on bookkeeping statistics. Bookkeeping statistics are facts and trends that can influence the way business leaders view their company’s finances. The purpose of this list is to share interesting facts about bookkeeping while educating professionals on why these statistics matter. 

These ideas are similar to examples of bookkeeping versus accounting, reasons why bookkeeping is important, and bookkeeping basics. 

This list includes: 

• basics of bookkeeping
• bookkeeping fundamentals
• bookkeeping trends
• small business accounting statistics
• accounting industry trends

Let’s get to it

List of bookkeeping statistics

Learning about bookkeeping facts and statistics can help you build upon your bookkeeping skills and knowledge. Whether you are new to the field or simply would like to learn about this profession, here is our list of top statistics in bookkeeping. 

1. 21% of small and medium business owners say they do not know enough about bookkeeping. 

When it comes to small business accounting statistics, small and medium business owners have reported not having enough knowledge about bookkeeping. In fact, 21% of small and medium business owners say they do not know enough about bookkeeping. In addition, nearly 70% of small businesses do not have an accountant. 

This statistic highlights a gap in financial literacy, especially among small and midsize business owners. One of the best ways to combat this financial literacy gap is to provide easy access to resources that help business owners understand the complexities of bookkeeping. Educational initiatives, such as programs and seminars with the goal of providing financial literacy to this audience. 

Financial literacy is the backbone of a business achieving financial success. Bridging the gap in financial literacy is crucial within the small and medium business sectors. 

2. 34% of small business owners manage their company’s bookkeeping functions. 

According to a 2021 survey by QuickBooks Live Bookkeeping, 34% of business owners are personally in charge of their company’s bookkeeping functions. For some businesses, it makes sense to operate with the business owner balancing the books. 

For example, small businesses may not need to hire a dedicated bookkeeper as deep financial analyses may not be necessary. Instead, a business leader may be able to take on this role.  

Small businesses should consider hiring a bookkeeper and accountant when the company has a larger number of assets and liabilities to manage. Larger businesses, however, are more complex and often require a dedicated team member who truly knows the ins and outs when it comes to the basics of bookkeeping. 

3. Over 60% of all business owners take on bookkeeping responsibilities. 

There are many time-consuming tasks associated with bookkeeping, such as data entry and reporting. From small to medium and large companies, 64% of company owners take on the responsibility of managing their own books, according to Statista. Luckily, however, 64.4% of small and medium-sized accounting firms in the United States have turned to new technology and software to help keep bookkeeping simple. 

Although many business owners take a hands-on approach to balancing books on their own, many of the time-consuming tasks associated with bookkeeping have been eliminated by cloud-based small-company accounting software. Software like this can tackle important tasks, such as transmitting transactions instantly from bank accounts. 

Tools, education, and resources – such as accounting software – can prove to be a huge assistance to business owners in streamlining and enhancing their bookkeeping practices. 

4. In 2023, the accounting services industry was worth about $585 billion. 

According to a report by IBIS World, the accounting industry was worth nearly $585 billion worldwide. Keep in mind that the accounting services industry is a vast field, including a wide variety of services such as bookkeeping, tax preparation, and payroll services. 

This impressive figure highlights the accounting field’s significant economic footprint. The value of the industry also speaks to the crucial role that accounting professionals and firms play when it comes to providing support for businesses and individuals who are navigating the intricacies of financial management. 

The increased value of the industry also speaks to the growing demand for professionals in accounting. Currently, there is an ongoing need for professionals who are proficient in finance to provide their services to businesses that would like to achieve financial success through the tracking and reporting of their finances. 

5. Nearly 75% of accounting operations can be automated by software

According to data from U.S. Accounting Services and Go Remotely, new technology and accounting software can automate about 75% of accounting operations and tasks. Automation can bring a pivotal twist to the way businesses everywhere manage their financial processes. Automation, in this case, can include more tedious and routine work, such as data entry, categorization, and complex calculations. 

Leaning on automation can be a great idea and a big help to business owners looking to take their company to the next level. In fact, automation is a game changer when it comes to saving time and money. For example, instead of having employees work on data entry, you would be able to automate this process and have team members dedicate time to more important tasks. Automation also has the power to reduce human errors and streamline tedious financial processes. 

With automation as one of the biggest accounting industry trends to look out for, it is no surprise that this practice is already being used in bookkeeping as an efficient way to speed up processes and move the company’s goals forward. 

6. 79% of accounting firms provide bookkeeping services

Although bookkeeping and accounting are two different fields, there is some overlap between the two. For example, bookkeeping services are provided by a majority of accounting firms, with as much as 79% of accounting firms extending their services to incorporate and offer bookkeeping services as well.

The overlap between bookkeeping and accounting allows for the opportunity for accounting firms to incorporate integrated financial services. As a result, accounting firms can provide a wide range of services – including bookkeeping – under one roof. This benefits potential customers who can find more options to address their own financial management needs. Furthermore, the combination of accounting and bookkeeping services in one company allows clients to find all of the financial guidance and support they need under one roof. 

7. The business sector is more likely to search for bookkeeping services

In 2019, the business sector was noted as the top customer of accounting, tax preparation, bookkeeping, and payroll services, which accounted for 69.2% of overall revenues. Based on the need for bookkeeping in the business world, it is evident the immense value that bookkeeping and accounting services bring to the table. 

Startup companies, for example, can especially benefit from bookkeeping services. These businesses typically have limited resources and are looking to grow and scale their operations as efficiently as they can. Startup companies, however, do not always have the resources to be able to balance their books in-house. As a result, startup companies are just one example of why bookkeeping is so essential to companies within the business sector. 

Within the business sector, there is a high need for accurate and efficient financial record-keeping. This is where bookkeeping comes in, providing services that paint a vivid picture of a company’s financial health and standing. 

Furthermore, outsourcing bookkeeping services provides financial transparency and stability to companies. Outsourcing these services allows employees in the company to focus on more pressing tasks, such as driving the company’s mission and goals. 

8. 82% of small businesses fail due to poor cash flow management

Cash flow management is defined as the process of tracking how much money comes in and out of your business. Cash flow is one of the most important aspects of managing a company, and mismanaging this area can have dire consequences. 

In fact, according to a study conducted by U.S. Bank, 82% of small businesses fail due to poor understanding and management of cash flow. This underscores the importance of effective bookkeeping. 

Maintaining accurate financial records is one of the best ways for business leaders to keep track of the company’s cash flow, in addition to monitoring revenue and expenses. Proper cash flow management can also help business leaders with budgeting. Oftentimes, small business leaders operate with tight budgets, in which even the slightest deviation can have significant financial implications. Bookkeeping can help businesses stay on track, sticking to a budget and tracking expenses in real time. 

Proper bookkeeping plays a significant role in helping a company grow by closely monitoring cash flow and providing insights to help leaders make informed financial decisions. 

9. Cloud bookkeeping companies see an annual revenue increase of about 15%

With the rise in technological advancements and emerging technology, the use of cloud-based platforms is seeing a notable increase across business sectors. The rise of cloud computing within bookkeeping is equally noteworthy. In fact, according to Flexi, an accounting software company, cloud bookkeeping companies typically see an average of 15% revenue increase per year. 

This increased demand for cloud services is one of the bookkeeping trends that is not going away any time soon. Cloud platforms offer bookkeepers various benefits that traditional bookkeeping methods cannot provide. For example, cloud services provide bookkeepers with the ability to gain real-time access to their company’s financial data from any device with internet connectivity. This allows business owners to review their company’s financial data on the go in addition to completing other tasks, such as generating reports. 

Cloud service providers give business owners the ability to review important company financial data from any place and time, which ultimately leads to improved decision-making and seamless collaboration among teams. 

10. Over half of accounting and bookkeeping service providers report seeing an increase in profit after increasing the services provided

Oftentimes, business owners choose to revamp their businesses by diversifying their offerings.  In fact, 56% of accounting and bookkeeping companies increased profit by increasing the number of services they provide. This means that instead of sticking to the basics of bookkeeping, these professionals expanded their offerings to include services like payroll management, tax preparation, financial advisory, and even cloud bookkeeping, 

Branching out in this way allows bookkeepers to better cater to the evolving needs of all types of customers. It also allows customers to feel more assured, conveniently dealing with one bookkeeping provider as opposed to different companies for different services. Having multiple bookkeeping and financial services under one roof provides an ideal level of convenience and reliability. 

11. Accounting company services are mainly split between bookkeeping, payroll, and taxes 

Accounting firms are known to provide a wide variety of financial services. Doing so allows accountants and employees within the firm to best serve customers. 

Additional services provided by accounting firms can include: 

• Payroll: Ensures that employees are paid correctly and on time.
• Tax services: Helps companies mitigate tax risks and optimize tax savings.
• Compliance: Helps businesses navigate tax laws and regulations. 
• Business consulting: Provides valuable business advice to leaders and other professionals. 
• Outsourced CFO services: Provides business leaders with an accurate financial picture of the company. 

Today, 79% of accounting companies provide both accounting and bookkeeping services. In addition, some accounting companies also offer additional services, such as payroll services (25%), taxes (24%), compliance (20%), business advice (17%), assurance audits (15%), and outsourced CFO services (5%). 

Each of these services plays a pivotal role in contributing to a company’s financial health and stability. Proper bookkeeping provides a solid foundation for informed decision-making that is based on reliable data and sources. 

12. Bookkeeping is expected to see a job growth of about 5% in the next 10 years 

According to the U.S. Bureau of Labor Statistics, the 10-year national workforce is projected to grow by 3.71% in total. Bookkeeping, accounting, and auditing clerks specifically are expected to see a growth of about 5.7% over the same timeframe. As a result, this profession is expected to grow less than the national average. 

13. The most common skills for bookkeepers are reading comprehension, active listening, and mathematics

There are many skills needed to work in bookkeeping, such as financial literacy and time management. According to data from the Bureau of Labor Statistics, the most common skills for bookkeepers are reading comprehension, active listening, and mathematics. 

Understanding bookkeeping fundamentals is crucial for this role. However, other skills needed to land a job as a bookkeeping, accounting, or auditing clerk include critical thinking, persuasion, writing, and public speaking, among others. 

14. Business is the most common college major for bookkeepers 

The Department of Education and Census Bureau has reported that the most common college major for bookkeeping, accounting, and auditing clerks is business, with nearly 100,000 current employees in the field having graduated college with a business degree in 2021.  

Following business, education is the second most common major for bookkeepers, followed by social sciences as the third most popular major. 

Additionally, in terms of education levels, the education levels of professionals in the bookkeeping, accounting, and auditing fields have completed either some college, finished high school or equivalent, or obtained a bachelor’s degree. 

Conclusion

The field of bookkeeping is ever-changing, with new technological advancements and bookkeeping practices constantly being introduced in the market. Staying up to date on all of the latest bookkeeping trends and statistics is important for businesses that wish to remain relevant and valuable. 

From the increased adoption of accounting and bookkeeping software to the growing value of the $585 billion industry, these statistics paint a vivid picture of the importance of bookkeeping. Keeping up with the dynamic changes in the world of bookkeeping is essential for business leaders to achieve financial success.  

Next, check out common bookkeeping mistakes to avoid, accounting errors to avoid, and online bookkeeping services for small businesses. 

Let Rigits help you

Grow confidently Sleep better at night

Get stuff off your plate

Let's chat!