The accounting services industry is massive and almost entirely privately held. As such, there are limited publicly available data points on the industry to help inform investors, companies, and other industry stakeholders of the key trends impacting the industry on both short- and medium-term bases.
With this in mind, Andrew Nicholas, CPA, conducted an extensive survey of accounting services executives on a variety of key industry dynamics. Of those surveyed, 77% of respondents were top executives, and 17% were in another executive management role. Key highlights from William Blair’s inaugural survey include the following:
- Organic revenue growth: Consulting and client accounting services are expected to be the primary drivers of growth acceleration over the next year
- Price realization: Smaller firms and firms that have taken on external capital have relatively greater conviction in their ability to realize price increases going forward
- Talent environment and compensation: Executives expect compensation increases to remain at strong levels over the next several years
- Technology: Accounting services executives expect to increase their investment in technology over the next three to five years
- Non-U.S. labor: Based on survey responses, we believe there’s a long runway for increased usage of non-U.S. labor moving forward
- Mergers and acquisitions: Multiples have trended higher in the past few years, and respondents cited an evolution in deal structures over the same time frame
From growth rates to tracking labor market trends to deal structures, William Blair analysts will continue to monitor activity in the accounting services space and provide updates.
For more information about our global services research, please contact us or your William Blair representative.
Listen to the William Blair Thinking Presents podcast episode: Accounting Insights: Navigating Growth and Technology Trends