III. Industry Analysis
The United States Accounting Industry is forecasted to generate more than $141B this year. According to Statista reports, the largest accounting firm in America generates approximately $22.9B annually. There are currently 1.3 million accountants employed throughout the United States.
The accounting industry can be categorized by its various certifications. Approximately 52.7% of accountants are certified public accountants (CPAs), while 39.9% are non-CPAs. There is a much smaller percentage of certified management accountants (CMAs) with 3.1% and enrolled agents (EAs) with 4.2%. EAs are tax professionals who work directly with the IRS.
The top accounting firms industry-wide are Deloitte ($23.2B in annual revenue), PriceWaterhouseCoopers ($18B in annual revenue), Ernst & Young ($15.8 in annual revenue), and KPMG ($9.6 in annual revenue). All other accounting firms in the United States combined generate approximately $43.5B in annual revenue. An estimated 30% of industry revenue is generated through auditing services. Additional services such as tax preparation, planning, and consulting make up 36% of revenue.
One of the biggest challenges for accounting firms is the ability to keep up with changes in regulations. Additional hurdles include recruiting and retaining high quality employees, keeping up with evolving technology, and acquiring new clients. Millennials in particular are challenging to attract because they expect more flexibility, convenience, and better service levels from accountants; and prefer those who can offer all of these things at lower rates than the competition.
