Table of Contents
Key Insights
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- How are the incoming audit reforms likely to affect mid-tier accounting firms?
- How are firms counteracting the lack of growth in the smaller company audit market?
- How are cloud computing and mobile technologies transforming the industry?
- Why are the Big Four turning their attention the SME market? What are their efforts in penetrating that sector?
Introduction
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- Definitions
- Methodology
- Abbreviations
- Market positioning
UK Economy
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- Overview
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- Figure 5: UK GDP quarterly development, 2003-15
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- Figure 6: UK GDP in economic downturns and recoveries since 1979
- Inflation
- Interest rates
- House prices
- Consumer spending
- Manufacturing
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- Figure 7: UK output by industry, 2008-15
- Business investment
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- Figure 8: UK GFCF 2003-15
- Imports
- Exports
Market Factors
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- Key points
- Legislation and Government policy
- CMA audit order and new EU regulatory framework on statutory audit
- New audit threshold
- New UK accounting standards
- Taxation of LLPs
- Large accounting firms under spotlight in clampdown on tax avoidance schemes
- Measures put in place to crack down on tax avoidance
- Break-up of Audit Commission and tendering of contracts to private sector
- Companies Act shake-up
- Scottish tax devolution
- HMRC move towards digital tax services
- Other market factors
- Rise in the number of active businesses as UK economic recovery becomes more robust
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- Figure 9: Number of private sector businesses in the UK, 2001-15
- Figure 10: Number of private sector businesses in the UK, 2001-15
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- Figure 11: Number of VAT and/or PAYE registered enterprises in the UK, by industry group and turnover size band, 2015
- Self-employment higher than at any point over the past 40 years
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- Figure 12: Self-employed workers in the UK, 2005-15
- Trend in insolvencies and business recovery
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- Figure 13: Number of company insolvencies, receiverships and administrations in England and Wales, 2005-15
- Trends in M&A activity
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- Figure 14: Mergers and acquisitions involving UK companies, 2004-15
- Number of listed companies on a downward trend
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- Figure 15: Number of main market and AIM listed companies, 2008-15
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- Figure 16: Number of main market and AIM listed companies, 2008-15
Market Size and Segmentation
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- Key points
- Market size
- Overview
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- Figure 17: The UK market for accounting and financial management, 2011-15
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- Figure 18: The UK market for accounting and financial management, 2011-15
- Market segmentation
- Overview
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- Figure 19: Segmentation of the UK market for accounting and financial management, by type of service, 2011-15
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- Figure 20: Segmentation of the UK market for accounting and financial management, by type of service, 2011 and 2015
- Audit and accounting
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- Figure 21: UK fee income from audit and accounting services, 2011-15
- Tax services
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- Figure 22: UK fee income from tax services, 2011-15
- Consultancy
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- Figure 23: UK fee income from consultancy services, 2011-15
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- Figure 24: UK fee income from consultancy services, 2011-15
- Corporate finance and business recovery
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- Figure 25: UK fee income from corporate finance and business recovery services, 2011-15
- Overseas trade in accountancy services
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- Figure 26: International trade in accountancy services, 2010-14
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- Figure 27: Exports and imports of accountancy services, 2010-14
Market Trends and Issues
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- Key points
- Market trends and issues
- Big Four continue to dominate FTSE 250 audit market
- Lower end of the audit market is becoming increasingly uneconomical for auditors
- Accounting firms on acquisition trail to beef up consultancy arms
- Big Four eyeing up SME market
- Cloud computing is transforming the accounting industry
- ‘Big Data’ and data analytics represent key growth areas for accountants
- Role of content marketing and social media
- Forensic accounting
Industry Structure
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- Key points
- Industry development
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- Figure 28: Top 20 accounting firms in the UK, by fee income, 2015
- Accounting firms are moving into legal services
- Mid-tier firms are on consolidation course
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- Figure 29: Analysis of the changes in the structure of the UK accounting, bookkeeping, auditing and tax consultancy industry, 2011-15
- Structure by employment
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- Figure 30: Analysis of the employment structure of the accounting, bookkeeping, auditing and tax consultancy industry, 2014 and 2015
- Structure by turnover
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- Figure 31: Analysis of the financial structure of the UK accounting, bookkeeping, auditing and tax consultancy industry, 2014 and 2015
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- Figure 32: Analysis of the financial structure of the UK accounting, bookkeeping, auditing and tax consultancy industry, 2015
- Company profiles
Baker Tilly UK Holdings Ltd
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- Figure 33: Segmental turnover analysis of Baker Tilly UK Holdings, 2015
- Figure 34: Financial analysis of Baker Tilly UK Holdings, 2010-14
- Company strategy:
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BDO LLP
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- Figure 35: Financial analysis of BDO, 2010-14
- Company strategy and outlook:
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DELOITTE LLP
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- Figure 36: Segmental turnover analysis of Deloitte, 2015
- Figure 37: Financial analysis of Deloitte, 2011-15
- Company strategy:
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Ernst & Young LLP
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- Figure 38: Segmental turnover analysis of EY, 2015
- Figure 39: Financial analysis of Ernst & Young, 2011-15
- Company strategy and outlook:
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Grant Thornton UK LLP
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- Figure 40: Segmental turnover analysis of Grant Thornton, 2015
- Figure 41: Financial analysis of Grant Thornton UK, 2011-15
- Company review and outlook:
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KPMG LLP
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- Figure 42: Segmental turnover analysis of KPMG, 2014
- Figure 43: Financial analysis of KPMG, 2010-14
- Company strategy and outlook:
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Mazars LLP
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- Figure 44: Segmental turnover analysis of Mazars, 2014
- Figure 45: Financial analysis of Mazars, 2010-14
- Company strategy and outlook:
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Moore Stephens LLP
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- Figure 46: Segmental turnover analysis of Moore Stephens, 2015
- Figure 47: Financial analysis of Moore Stephens, 2011-15
- Company strategy:
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Pricewaterhousecoopers LLP
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- Figure 48: Segmental turnover analysis of PwC, 2015
- Figure 49: Financial analysis of PwC, 2011-15
- Company review and strategy:
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Smith and Williamson Holdings LTD
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- Figure 50: Financial analysis of Smith & Williamson Holdings, 2011-15
- Company review and strategy:
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Market Forecast
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- Key points
- Market prospects
- Large and mid-tier firms to remain on acquisition trail
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- Figure 51: Forecast UK market for accounting and financial management, 2016-20
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- Figure 52: Forecast UK market segmentation for accountancy and financial management, by type of service, 2016-20
- Audit and accounting
- Tax services
- Consultancy
- Corporate finance and business recovery
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- Figure 53: Forecast UK market segmentation for accounting and financial management, by type of service, 2016-20
Further Sources and Contacts
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- Trade and professional associations
- Association of Chartered Certified Accountants (ACCA UK)
- Chartered Institute of Management Accountants (CIMA UK)
- Chartered Institute of Public Finance Accountancy (CIPFA)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants Scotland (ICAS)
- Trade exhibitions
- Accountex 2016
- CIPFA annual conference 2016
- Trade magazines
- Accountancy Age
- Accountancy Live
- Tax Advisor
- Taxation
- The Accountant
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