|SIC Codes:||7291 7819 8721|
|NAICS Codes:||541211 541213 541214 541219|
Companies in this industry provide services such as auditing, bookkeeping, payroll processing, and tax return preparation. Major companies include the "Big Four" accounting firms: Deloitte Touche Tohmatsu, Ernst & Young, KPMG, and PricewaterhouseCoopers, which all have international operations; other leading companies include US-based Automatic Data Processing (ADP), Paychex, and H&R Block.
Demand for accounting services depends on new business formations, the increasing complexity of corporate business, and higher personal income. The profitability of individual firms depends on the right mix of services and effective marketing. Large firms have advantages in providing wider ranges of services to large corporate clients and having the resources to serve customers with many locations. Small firms can compete effectively by specializing and providing superior service. The US industry is fragmented: the 50 largest US companies account for just less than 50 percent of revenue.
Payroll services account for 25 percent of US industry revenue, tax preparation for 20 percent, and auditing for 15 percent. Bookkeeping represents 10 percent of industry revenue, and tax consulting and general accounting, 5 percent each. Other services include computerized accounting systems, training, financial statement review and procedures, and management consulting. Some accountants have branched into accounting-related information technology consulting, business consulting, and personal financial planning. Small business owners often rely heavily on their accounting firms for advice.Buy Now