15 Accounting Statistics and Trends to Know

Here is our list of the best accounting statistics. 

The finance and business landscape is continuously evolving, which is why it is important to stay informed about the latest accounting statistics. Accounting statistics are data points and trends that shape the accounting industry for all businesses, large and small. The purpose of this list is to highlight interesting facts about the accounting field in the hopes of educating business leaders on why these trends are important to know.  

These ideas are similar to examples of bookkeeping versus accounting, accounting errors to avoid, and the best accounting software. 

This list includes: 

• small business accounting statistics
• accounting industry trends
• small business accounting
• hiring an accountant 
• accounting services 

Let’s get started!

List of accounting statistics

Becoming familiar with today’s accounting statistics and trends is a great way to gain valuable knowledge about the field. Whether you are just beginning in the industry or are an accounting veteran, here is our list of the top trends and statistics in accounting. 

1. 70% of businesses do not have an accountant

OnPay, a payroll business, has reported that nearly 70% of businesses do not have an accountant. Instead, these businesses rely on owners and managers to deal with finances and accounting matters. The remainder of companies (30%) have one more employees who are responsible for accounting and financial matters. 

A few of the reasons business owners provided when asked why they do not invest in an accountant include: 

• Lack of trust 
• Added expense 
• Business is too small 
• Difficulty finding a trusted financial expert 

Working with an accountant can help businesses save money and reduce the stress associated with worrying about finances. Hiring an accountant is one of the best ways to keep your company’s finances in order and set your business up for success. 

2. 64% of business owners manage the company’s books 

According to Statista, 64% of business owners conduct bookkeeping for their company. Luckily, new software and tools have made this task much easier in small business accounting. 

Cloud-based small business accounting software has many advantages for small business owners. For example, software like this can make transfers and transactions automatically from bank accounts, taking the hassle out of bookkeeping and making it less time-consuming. 

One example of accounting software is Xero, the second-largest provider of small business accounting software in the world. According to Xero, the platform currently has over 3 million subscribers across more than 180 countries. This tool is widely popular across the U.S., as well as in other countries like New Zealand, Australia, and the United Kingdom. 

3. When searching for an accountant, 49% of small business owners consider recommendations from professional advisors

Choosing an accountant for the first time is not a simple task. Many factors play into this decision, such as cost, scope of work, and, most importantly, trust. It can take some time for business leaders to find the right accountant to work with. 

When small business owners take the first step in seeking accounting services, 49% are more likely to consider recommendations from professional advisors, according to a small business finance and HR report by OnPay. Furthermore, 31% will head online to read reviews, while 14% believe consulting with friends and family is important. 

4. Over 90% of firms use technology to enhance processes 

Wolters Kluwer, a global accounting services solutions provider, reported that more companies are seeking the use of technology to help enhance their processes. Specifically, 94% of large firms and 90% of small accounting firms plan to use some form of technology to help them this upcoming tax season. 

These companies also plan to leverage technology to help: 

• Increase productivity 
• Boost employee engagement 
• Improve customer and client experience 
• Achieve success during tax season 

In the past few years, technology has largely evolved the way many companies conduct business, especially so they can stay on track with legislative changes. As a result, more companies nowadays are being strategic in making this shift toward technology, especially when it comes to tax season.  

5. Automating the accounts payable process can save about $16 per invoice 

Automating tedious processes like accounts payable is one of the best ways for accounting firms to save money and time. In most cases, automation truly pays off. 

Depending on the size of the firm, companies can save about $16 per invoice by implementing accounts payable automation, according to Vanguard Systems. On average, automation typically begins paying for itself between 6 and 18 months from the time it is implemented. 

In any accounting company, professionals are tasked with keeping track of all of the bills and payments that go through the system. Implementing automation into your processes can be a major help in boosting efficiency and productivity while reducing the risk of human error. 

6. 43% of accounting professionals report that technology helps increase productivity  

Automation has immense benefits in the accounting industry. In fact, automating processes can help business owners save time, reduce spending, and decrease stress. 

According to Sage’s 2020 Essential Report for Accountants, 43% of accountants believe the integration of technology into their practice has made them more productive. Additionally, 40% of accountants who responded to the survey are either currently investing in or plan to invest in automation tools and capabilities over the next 12 months. Respondents from smaller accounting firms, on the other hand, felt less likely to adopt or invest in technology. 

By incorporating automation into their practices, businesses of all sizes can remain competitive and relevant in today’s market. As a result of using new technology, business owners can have the opportunity to automate repetitive and time-consuming tasks and, instead, focus on more important aspects of the business. 

7. 67% of accountants prefer to use cloud accounting technology

The emergence of cloud accounting software is creating a major shift in the industry. Tools like this make it easier for accounting professionals to quickly access company data from anywhere in the world using the internet. The simplicity and convenience are what make cloud accounting tools so attractive to accounting professionals. 

According to Sage’s Practice of Now 2018 Report, 67% of accountants prefer cloud accounting technology to other methods. Furthermore, 58% of large companies have reported that they are already using cloud accounting tech, according to Accounting Today. 

One of the most fascinating small business accounting statistics is that companies using cloud accounting tools can expect to add five times more clients to their roster compared to companies that do not use this technology, as reported by Capital Counselor. 

Taking advantage of technology like this can allow businesses to save an immense amount of time, money, and effort. 

8. In 2021, the global market value for accounting services reached $573.29 billion 

According to Research and Market’s Global Accounting Services Market Report (2021 to 2030), the global accounting services market grew from $544.06 billion in 2020 to $573.29 billion in 2021. This means that in the span of just one year, the industry experienced a compound annual growth rate (CAGR) of 5.4%. 

Experts have attributed this growth to the impact of the COVID-19 pandemic, which forced companies to reassess and rearrange their operations processes. Many of these companies also had to recover from the many impacts of the pandemic, including restrictive containment measures, such as social distancing and remote work.  

Today, the accounting services industry continues to see an upward trend. By 2025, the market is expected to reach a total of $735.94 billion at a CAGR of 6%.  

9. The accounting services industry is expected to reach $735.94 billion by 2025  

In recent years, one of the top accounting industry trends has been the prevalence of new accounting software. In fact, the global accounting software market is expected to reach a value of $735.95 billion by 2025, according to Research and Markets. 

The accounting software industry has been undergoing significant shifts, including the shift toward cloud accounting software. The growth of remote work, as a result of the COVID-19 pandemic, is part of the reason why cloud-based accounting software has become so popular in past years. With more people working remotely, there is an increased demand for software that accommodates this need. 

10. 50% of accounting firms are struggling to keep up with rapid legislative changes 

Constant change and evolving standards are typical in the accounting world. From new tax laws to emerging automation technology, there is so much rapid change going on that accountants need to prepare for. 

In the accounting industry, there are constant legislative changes that professionals in the field need to stay on top of. Wolters Kluwer, however, reports that keeping up with these changes poses a problem for more than 50% of surveyed accounting firms. 

Regardless, 36% of small firms and 45% of large firms reported a better tax season this year as compared to last year’s tax season. Furthermore, 90% of small firms and 94% of large firms are looking to use technology to help them achieve an even better tax season in the coming years. 

Staying in the know when it comes to the rapid changes in the accounting industry is crucial for companies that want to be on top and succeed. 

11. The Big Four accounting firms had a combined revenue of nearly $190 billion in 2022

When it comes to the leading companies in the country, there are a handful of accounting firms, known as the Big Four, which are most well known as the leading firms. 

Accounting firms included in the Big Four are Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG. Together, these companies had a combined revenue of nearly $190 billion in 2022. Additionally, the revenue of Deloitte – the largest accounting firm in the U.S. – was reported as $27.94 billion, according to Statista. 

Here are some more fascinating data points as part of the U.S. accounting industry overview: 

• The revenue of accounting services in the U.S. is a total of $144.5 billion. 
• The total number of bookkeeping, accounting, and auditing clerks in the U.S. is 1.55 million. 
• The total number of accountants and auditors in the U.S. is 1.4 million. 
• California has more accountants and auditors than any other state in the U.S.
• In New York, the annual mean wage for accounting and auditing is $110,750. 

The U.S. accounting industry is everchanging and has proven itself to be a highly profitable line of business. 

12. There are 1.4 million accountants and auditors in the U.S 

According to the U.S. Bureau of Labor Statistics, there are currently 1.4 million accountants and auditors employed in the United States. This number includes both certified public accountants (CPAs) and non-CPAs. Furthermore, there are 672,587 actively licensed CPAs in the country, according to the National Association of State Boards of Accountancy (NASBA).  

Another category of accounting professionals includes enrolled agents (EAs). Enrolled agents are federally licensed tax practitioners who can represent taxpayers before the IRS when it comes to collections, audits, and appeals. 

Specific expertise, education, and requirements are needed to become an enrolled agent, which is why there are not many in this profession. There are only about 53,700 enrolled agents in the profession, according to the National Association of Enrolled Agents (NAEA). 

13. Accounting and auditor employment is projected to grow by 4% by 2032 

When it comes to job outlook – or the projected change in employment – accounting and auditing jobs are projected to grow by 4% between 2022 to 2032, according to the Bureau of Labor Statistics. 

Diving deeper into this statistic, there are about 126,500 job openings in this field projected each year, on average. These job openings are expected to replace workers who are retiring, changing career paths, or simply exiting the workforce. 

It is important to note that the average growth for all occupations is 3%, which means accounting jobs are expected to grow about as fast as the average for all other occupations. 

14. Completions of Bachelor’s degrees in accounting dropped by 7.8% 

According to an American Institute of CPAs (AICPA) report, the pool of accounting graduates is gradually shrinking, the Journal of Accountancy reported. Between 2021 and 2022, bachelor’s degree completions in accounting dropped by 7.8%. In prior years, this percentage had been steadily declining between 1-3% per year since 2015 and 2016. 

The completion of master’s degree completions also dropped by 6.4% in the 2021 through 2022 timeframe. It is important to note, however, that this percentage decline is significantly less than it was in the 2019 to 2020 academic years.  

Projections for the upcoming school years look more positive as they are trending upward. For the 2023 to 2024 year, 75% of bachelor’s programs and 78% of master’s programs expect enrollment in their programs to be the same or higher than it was in the 2021 to 2022 academic year. 

15. 82% of accountants are considering candidates from non-traditional backgrounds

One of the keys to success for accounting firms is to have the right employees in place. However, the recruitment and retention of talented accounting professionals have proven to be a hurdle for some firms. 

A whopping 82% of accountants are currently considering recruiting employees who come from non-traditional backgrounds, according to a Sage 2019 report. Some aspects that factor into this decision include market demands, client demands, and generational changes, among other factors.  

Conclusion

Accounting is a fast-paced field in which professionals must always stay up to date on new laws, technology, and software. Remaining current on the latest accounting trends can help businesses provide the utmost value to clients and customers. 

From the growing revenue across accounting firms to projected job outlook and growth, these statistics highlight the impact that the accounting industry has on all businesses large and small. Keeping up with changes and trends in the field will allow businesses to grow and achieve success. 

Next, check out common bookkeeping mistakes to avoid, reasons why bookkeeping is important, and our guide to bookkeeping basics. 

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