Balanced development: Do-it-yourself accounting software poses both a threat and opportunity

Firms in the Bookkeeping industry record commercial transactions on behalf of companies and other organisations. Small- and medium-size firms are vital markets for the industry, accounting for over 50% of revenue. Over the five years through 2017-18, generally improving economic conditions following the economic downturn supported an increasing number of firms operating in the United Kingdom. This led to an expanding potential client base for industry operators. Additionally, average levels of business profit in the United Kingdom have risen, further enabling more firms to outsource back-office activities. These trends strongly increased demand for industry services over the first half of the current five-year period...read more.

Industry Statistics & Market Size
Revenue
£2.5bn
Annual Growth 13-18
3.3%
Forecast Growth 18-23
Profit
Employment
30,510
Businesses
3,785
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Accounting software allows small and medium-size firms to manage their books in-house
  • Bookkeeping professionals can use new technology to serve more clients
  • Demand for value-added services is expected to improve in line with profit margins
  • Industry Report - Starting a New Business Chapter

    The barriers to entering the Bookkeeping industry are relatively low from a practical standpoint. This is reflected by the industry’s low concentration level that indicates that scale is not an essential prerequisite for success. There are many small firms in the industry driving up the level of competition. However, due to the fragmented nature of the industry with its geographic spread across the whole of Britain, it is relatively easy for new companies to find a local or niche market to enter. In conjunction with the industry’s low capital intensity, this means that start-up investment requirements are relatively low. Add...purchase to read more.

    Additional Insights for the Bookkeeping Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bookkeeping Industry are

  • Receiving the benefit of word of mouth recommendations
  • Qualified work force
  • Company's product is user/consumer friendly
  • IBISWorld analysts also discuss how external factors such as Business profit and Number of businesses in the Bookkeeping industry impact industry performance..

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    What's in this report

    What is the Bookkeeping Industry?

    Firms in the Bookkeeping industry record commercial transactions for businesses and other organisations for the purpose of record keeping and accounting. The industry does not include the provision of management consultancy or accounting services.

    Industry Products
  • Maintaining transaction records
  • Producing financial reports
  • Performing reconciliations
  • Online bookkeeping and cloud accounting
  • Industry Activities
  • Maintaining daybooks
  • Maintaining petty cash books
  • Keeping journals
  • Maintaining ledgers
  • Chasing debt and credit control
  • Calculating quarterly VAT returns
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business profit
  • Number of businesses
  • Business confidence index
  • IT and telecommunications adoption
  • Real effective exchange rate

  • Current Performance
  • Software and skills
  • Overseas competition
  • Regulatory change
  • Maintaining margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising demand
  • Overseas competition
  • Ongoing online growth
  • Profit margins
  • Table: Bookkeeping Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bookkeeping Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Software Development
  • Legal Activities
  • Accounting & Auditing
  • Financial Management

  • Key Selling Industries
  • Data Processing & Hosting Services
  • Renting and Operating of Own or Leased Real Estate
  • Software Development
  • Universities

  • Products & Services
  • Maintaining transaction records
  • Online bookkeeping and cloud accounting
  • Producing financial reports
  • Performing reconciliations
  • Chart: Bookkeeping Industry Products and Services Segmentation

  • Demand Determinants
  • Economic conditions
  • Technological change

  • Major Markets
  • Small- and medium-size businesses
  • Accounting firms
  • Large businesses
  • Public-sector organisations
  • Chart: Major Market Segmentation for the Bookkeeping Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Bookkeeping

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bookkeeping Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Bookkeeping Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Bookkeeping Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • Online virtual storage space where remote users can access and process data.
  • Offshoring
  • Outsourcing non-core business activities to a location outside the home country. This practice is typically pursued to take advantage of low production or labour costs.
  • Outsourcing
  • Using external service providers to perform non-core business functions.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bookkeeping market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Bookkeeping:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Bookkeeping market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Bookkeeping, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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