Accounting Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: August 2024
ANZSIC M6932Revenue
$33.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
160k
Businesses
36,833
Wages
$XX.Xbn
Accounting Services in Australia industry analysis
The Accounting Services industry has performed well over the past few years. Historically, audit and tax services have been a dependable source of revenue for accounting firms. Yet, ATO's myTax system and mobile app advancements have streamlined tax return procedures, reducing individuals' and SMEs' reliance on tax accountants. Stringent regulation, coupled with the rise of AI and ESG factors, has fostered industry growth. The growing importance of ESG factors in Australia has led many businesses to adopt sustainability reporting, and integrate climate risks and opportunities in their decision-making processes, spurring interest in audit and advisory services. AI's role in processes like preparing financial statements has provided accountants with more breathing room to offer value-added services like strategic planning and forecasting. These services often command a higher premium and have larger margins than traditional accounting services, boosting industry profitability. Overall, revenue is expected to climb at an annualised 1.2% to $33.4 billion through the end of 2024-25. This includes an anticipated 0.8% dip in 2024-25, following inflationary pressure that forces some businesses to slash spending.
Trends and Insights
- Accounting services are transitioning towards advisory roles. This move is driven by businesses' increasing need for strategic advice and financial management solutions, facilitated by technological advancements and the growing complexities of regulatory environments.
- The surge in ESG initiatives and AI advancements has escalated the need for advisory services. As accounting firms intensify their focus on these value-added services, revenue generated from advisory services climbs.
- Accounting firms’ geographic distribution largely correlates with Australia's population distribution and economic activity. The industry is heavily concentrated on the eastern seaboard, with over 80.0% of enterprises in New South Wales, Victoria and Queensland.
- The rising focus on advisory services contributes to growing market concentration, with well-established firms using this as an approach to attract more clients. This positions those firms as thought leaders, boosting their reputation and market share.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $33.4bn in 2024.
Trends and Insights
Advisory services are the new profit driver
- The Accounting Services industry in Australia has seen a shift in its core services thanks to the advent of digital technologies, specifically AI, and the increasing focus on ESG aspects. This change has been inspired by companies seeking strategic advice and comprehensive solutions to their financial management needs beyond tax and auditing services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The new Australian Sustainability Reporting Standards will fuel demand for accounting services
- In response to the growing demand for the enhanced disclosure of climate-related financial information, the International Sustainability Standards Board (ISSB) issued IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures in June 2023. This led the AASB to formulate the Exposure Draft ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information.
Biggest companies in the Accounting Services in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
EY | 1,949.2 | |
KPMG | 1,913.4 | |
PwC Australia | 1,771.0 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Audit services, Advisory services and Tax services. Audit services is the largest segment of the Accounting Services in Australia.
Trends and Insights
Stringent regulations boost revenue from audit services
- Clients use internal audits to assess the effectiveness of risk management, controls and governance, and external audits to meet regulatory requirements and provide credibility to financial statements.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Professional Services in Australia
Complementors
- Legal Services in Australia
- Management Consulting in Australia
- Facilities Management and Other Office Administrative Services in Australia
International industries
- Global Accounting Services
- Third-Party Administrators & Insurance Claims Adjusters in the US
- Payroll & Bookkeeping Services in the US
- Accounting Services in the US
- Tax Preparation Services in the US
Table of Contents
About this industry
Industry definition
Industry companies provide accounting services, including auditing accounting records, preparing financial statements, preparing tax returns and bookkeeping. Industry companies also offer business advice and assistance in conjunction with these services.
What's included in this industry?
Advisory servicesAudit servicesBookkeeping servicesTax servicesCompanies
EYKPMGPwC AustraliaPurchase this report to view all 6 major companies in this industry.
Related Terms
CLOUD ACCOUNTINGINITIAL PUBLIC OFFERING (IPO)MYTAX TOOLINTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)Industry Code
ANZSIC 6932 - Accounting Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Accounting services are transitioning towards advisory roles. This move is driven by businesses' increasing need for strategic advice and financial management solutions, faci...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The surge in ESG initiatives and AI advancements has escalated the need for advisory services. As accounting firms intensify their focus on these value-added services, revenu...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Accounting firms’ geographic distribution largely correlates with Australia's population distribution and economic activity. The industry is heavily concentrated on the easte...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The rising focus on advisory services contributes to growing market concentration, with well-established firms using this as an approach to attract more clients. This positio...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Accounting firms are broadening their ESG services in response to mounting climate-related risks. As Australia transitions to net zero emissions and implements enhanced discl...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of EY's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of KPMG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of PwC Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for EY, and factors influencing its performance in the industry
- Description and key data for KPMG, and factors influencing its performance in the industry
- Description and key data for PwC Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The proposed bill on climate-related disclosures will necessitate new skills in accounting. If approved, accountants must ensure clients' compliance with these disclosures in...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Swelling software and technology costs are contributing to increased purchase costs for accounting firms. As firms shift towards real-time accounting and cloud computing, the...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Accounting Services industry in Australia in 2024?
The market size of the Accounting Services industry in Australia is $33.4bn in 2024.
How many businesses are there in the Accounting Services in Australia industry in 2024?
There are 36,833 businesses in the Accounting Services industry in Australia, which has grown at a CAGR of 1.3 % between 2019 and 2024.
Has the Accounting Services industry in Australia grown or declined over the past 5 years?
The market size of the Accounting Services industry in Australia has been growing at a CAGR of 1.2 % between 2019 and 2024.
What is the forecast growth of the Accounting Services industry in Australia over the next 5 years?
Over the next five years, the Accounting Services industry in Australia is expected to grow.
What are the biggest companies in the Accounting Services market in Australia?
The biggest companies operating in the Accounting Services market in Australia are EY, KPMG and PwC Australia
What does the Accounting Services in Australia include?
Advisory services and Audit services are part of the Accounting Services industry.
Which companies have the highest market share in the Accounting Services in Australia?
The company holding the most market share in Australia is EY.
How competitive is the Accounting Services industry in Australia?
The level of competition is moderate and increasing in the Accounting Services industry in Australia.
