(Source: International Accounting Bulletin, article by Vincent Huck)
Each year the online magazine International Accounting Bulletin publishes its annual world survey ranking networks and associations by fee income and staff numbers globally and regionally.
According to the recently published 2016 report:
„Deloitte returns to the top overtaking PwC at the top of the table by a margin of US$904m, with fee income of US$36.8bn in the year to 31st May 2016. PwC reported US$35.9bn in the year to 30th June 2016, losing the top spot it had snatched in the previous year. Ranked fourth, KPMG, who had fallen behind the other Big Four in the last two years, seems to be back on the growth path, reporting a 4% increase in fee income, rising to $25.4bn.
In the associations’ rankings, nearly all the participants in the lower half of the table reported a decrease in fee income, pointing to struggling times ahead for the smaller players whose resilience might be at risk without critical mass and a truly global presence”.
During a roundtable in London gathering CEOs and COOs of networks and associations, the results of International Accounting Bulletin’s latest world survey were discussed and the new trends and directions were scrutinized:
„Smaller players will find it harder to survive in the coming year and they expect further consolidation in the accountancy market both for networks and associations. […] Also, „as advances in technology transform the accountancy profession through greater automation, accountants’ role is becoming less one of a compliance officer and more of a strategic adviser. Therefore today’s investments in technology are key to the long-term success of accounting firms.
The evolving role of accountants also means that firms now need to recruit staff from a wider range of profiles and skills. Beyond trainee accountants; firms are looking at engineers, IT specialist and others”.
One of the concerns expressed during this meeting was that accounting firms have to compete now not only with each other but also with other business sectors that seem more attractive to the younger generation; another concern is the macroeconomic environment, which is characterized by uncertainty and volatility (political turnovers, tax scandals, key elections in Europe and America).
The detailed global survey and analysis can be found on the International Accounting Bulletin website.
