Product Type: Market Research Report
Published by: Key Note Publications Ltd
Published: September 2007
Product Code: R310-1489Description This Key Note Market Report covers accountancy services in the UK. There are four types of accountancy service: audit and accounting (called business assurance by the major accountancy firms); taxation and legal services; corporate finance, including business recovery; and management consultancy.
The accountancy market has been very strong during 2006 and 2007. The rise in demand for accountancy services has been caused by the growth in the economy, the boom in the financial services sector, the increasing complexity of tax legislation and the need that many organisations have for business advice. Despite this, there are accountancy firms that have either made a loss or a very slim profit. Key Note estimates that the total accountancy market increased in value by 10.5% in 2006, to £19.59bn. This figure includes an estimate for the growth in the consultancy market, which accountancy firms also serve.
The accountancy market is dominated by the Big Four global accountancy firms. These firms audit practically all of the top 100 public companies, as well as the majority of the top 350 companies. Beyond the Big Four are many so-called mid-tier firms, among which there are some very significant accountancy firms. Although the mid-tier firms are reporting increased growth, the gap between the Big Four and the rest appears to be widening. It is difficult to see how this gap will be narrowed.
The issues that concern the accountancy profession include: auditor liability; audit choice; the role of the Big Four firms; the future for small firms and sole proprietors; skills shortages; and accountancy standards. Following the merger of Robson Rhodes and Grant Thornton, the prospect of more mergers is apparent: a lot of small accountancy firms appear vulnerable.
Key Note forecasts that the UK accountancy market will grow by more than 8% year-on-year to 2009, before slowing slightly in 2010 and 2011.
Table of Contents - Executive Summary
- 1. Market Definition
- REPORT COVERAGE
- MARKET SECTORS
- Audit and Accounting
- Taxation and Legal Services
- Corporate Finance and Business Recovery
- Management Consultancy
- MARKET TRENDS
- A Rapidly Growing Market
- Skills Shortage
- Mergers Among Mid-Tier Accountancy Firms
- More Regulations
- More Negotiations With HM Revenue & Customs
- ECONOMIC TRENDS
- Population
- Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006
- Gross Domestic Product
- Table 2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006
- Inflation
- Table 3: UK Rate of Inflation (%), 2002-2006
- Unemployment
- Table 4: Actual Number of Unemployed Persons in the UK (million), 2002-2006
- MARKET POSITION
- The UK
- Overseas
- 2. Market Size
- INTRODUCTION
- THE TOTAL MARKET
- Table 5: The Total UK Market for Accountancy and Related Services by Sector by Value (£bn), 2002-2006
- Figure 1: The Total UK Market for Accountancy and Related Services by Sector by Value (£bn), 2002-2006
- Figure 2: Market Share of the Big Four in the UK Accountancy and Related Services Market (%), 2006
- BY MARKET SECTOR
- Figure 3: The Total UK Market for Accountancy and Related Services by Sector by Value (%), 2006
- Audit and Accounting
- Table 6: The Total UK Market for Accountancy and Related Services — Fee Income from Audit and Accounting (£m), 2002-2006
- Taxation and Legal Services
- Table 7: The Total UK Market for Accountancy and Related Services — Fee Income from Taxation and Legal Services (£m), 2002-2006
- Corporate Finance and Business Recovery
- Table 8: The Total UK Market for Accountancy and Related Services — Fee Income from Corporate Finance and Business Recovery (£m), 2002-2006
- Management Consultancy
- Table 9: The Total UK Market for Accountancy and Related Services — Fee Income from Management Consultancy† (£m), 2002-2006
- 3. Industry Background
- INTRODUCTION
- RECENT HISTORY
- INDUSTRY SYNOPSIS
- Table 10: Financial Results for Companies Engaged in Accounting and Auditing Activities (£000, % and £), Latest Financial Results
- NUMBER OF COMPANIES
- Table 11: Number of UK VAT-Based Enterprises Engaged in Accountancy† by Turnover Sizeband (number and %), 2004-2006
- EMPLOYMENT
- Table 12: Number of UK VAT-Based Enterprises Engaged in Accountancy† by Employment Sizeband (number and %), 2004-2006
- Figure 4: Members of The Institute of Chartered Accountants in England and Wales by Area of Occupation (%), December 2006
- REGIONAL VARIATIONS IN THE MARKETPLACE
- DISTRIBUTION
- HOW ROBUST IS THE MARKET?
- LEGISLATION
- KEY TRADE ASSOCIATIONS
- The Institute of Chartered Accountants in England and Wales
- Association of Chartered Certified Accountants
- The Chartered Institute of Management Accountants
- The Chartered Institute of Public Finance and Accountancy
- The Institute of Chartered Accountants of Scotland
- The Institute of Chartered Accountants of Ireland
- 4. Competitor Analysis
- THE MARKETPLACE
- The Big Four
- Table 13: The Big Four Leading Accountancy Practices by UK Fee Income (£m), 2006/2007
- The Mid-Tier Firms
- Table 14: The Leading 46 Second-Tier UK Accountancy Practices by Fee Income (£m), 2006/2007
- MARKET LEADERS
- PricewaterhouseCoopers LLP
- Company Structure
- Current and Future Developments
- Financial Results
- Deloitte & Touche LLP
- Company Structure
- Current and Future Developments
- Financial Results
- KPMG LLP
- Company Structure
- Current and Future Developments
- Financial Results
- Ernst & Young LLP
- Company Structure
- Current and Future Developments
- Financial Results
- Grant Thornton UK LLP
- Company Structure
- Current and Future Developments
- Financial Results
- BDO Stoy Hayward LLP
- Company Structure
- Current and Future Developments
- Financial Results
- Baker Tilly
- Company Structure
- Current and Future Developments
- Financial Results
- Smith & Williamson
- Company Structure
- Current and Future Developments
- Financial Results
- PKF LLP
- Company Structure
- Current and Future Developments
- Financial Results
- Tenon Group PLC
- Company Structure
- Current and Future Developments
- Financial Results
- OUTSIDE SUPPLIERS
- MARKETING ACTIVITY
- 5. Strengths, Weaknesses, Opportunities and Threats
- STRENGTHS
- WEAKNESSES
- OPPORTUNITIES
- THREATS
- 6. Buying Behaviour
- OVERVIEW
- 7. Current Issues
- NO MERGER OF INSTITUTIONS
- THE FUTURE OF THE BIG FOUR
- AUDIT CHOICE
- SMALL FIRMS UNDER PRESSURE
- CORPORATE DEVELOPMENTS
- A PLEA FOR PRINCIPLES-BASED ACCOUNTING STANDARDS
- 8. The Global Market
- FEE INCOME
- Table 15: The Top Ten Accountancy Networks by Fee Income and Number of Professional Staff ($bn and number), 2006
- 9. Forecasts
- INTRODUCTION
- The Economy
- Table 16: Economic Forecasts (000, % and million), 2007-2011
- FORECASTS 2007 TO 2011
- Table 17: The Forecast Total UK Market for Accountancy and Related Services by Sector by Value (£bn), 2007-2011
- Figure 5: The Forecast Total UK Market for Accountancy and Related Services by Sector by Value (£bn), 2007-2011
- MARKET GROWTH
- Figure 6: Growth in the Total UK Market for Accountancy and Related Services by Value (£bn), 2002-2011
- FUTURE TRENDS
- Professional Issues
- More EU Directives and Initiatives
- 10. Further Sources
- Associations
- Publications
- Government Publications
- Bisnode Sources
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