Industry Insights

Financial Accounting & Tax Accouting

Financial accounting involves recording, summarising, and reporting business transactions over time, while tax accounting specifically focuses on transactions impacting an entity’s tax burden (Investopedia, 2023). The UK accounting services industry, valued at £6.4bn, experienced a 10% increase in new firms in 2022,
with notable growth in cities like London (69%) and Manchester (1,982 new providers since 2017).

Supporting the growth of these independently-run ventures is crucial. As client needs evolve, the sector diversifies into advisory services, with consultancy fee income for the top 100 firms growing by 169% in 2022 (Accountex, Accountancy Age, 2023). Demand for advisory services is driven by businesses’ strategic needs amid regulatory complexity and economic challenges. IBIS World forecasts industry revenue growth with improving economic conditions, increased M&A, IPOs, and expanding client pools (IBIS World, 2023).

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Statistics

The market size of accounting and auditing in the UK industry is £6bn

In April 2023, there were around 7,135 businesses in the accounting and auditing industry in the UK

The sector employs approximately 51,307 employees

Industry
Challenges

  • The inflation rate is of particular concern and will likely suppress consumer spending
  • Disruptions to global supply chains, including high energy and material costs
  • The impact of legislative and regulatory challenges on the market

Investment
Opportunities

  • Automation
  • Artificial Intelligence (AI)
  • Accounting Software
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Recruitment Industry

The recruitment industry comprises agencies and in- house professionals matching candidates with job vacancies using diverse methods. Despite a persistent shortage of candidates and a surplus of jobs, the value of recruiters has surged, particularly for businesses seeking talented hires (WikiJob, 2022; UK Recruiter, 2022).

The early 2023 recruitment landscape is still being determined, with a preference for temporary hires due to economic hesitancy (Signature Recruitment, 2023). But the future seems bright – the ManpowerGroup Employment Outlook Survey predicts positive short- term hiring expectations among UK employers (Staffing Industry Analysis, 2023).

To stay competitive, recruiters must evolve beyond transactional services – they must become strategic advisors, addressing broader client talent needs by embracing total talent solutions. In doing so, the role shifts from filling roles to solving overall talent challenges (UK Recruiter, 2022). 

Statistics

Temporary-employment placement agencies’ market size is £39bn

Over 60% of recruitment agencies are planning to increase their number of recruiters

43% of agencies say IR35 compliance has caused them difficulties when recruiting for contract positions

Industry
Challenges

  • Talent Shortages
  • IR35 compliance
  • Cost of living crisis

Investment
Opportunities

  • Alternative candidate attraction strategies
  • Utilisation of the industry tech stack
  • Recruiter Retention