Accounting Analysis On The Accounting Industry Essay

784 Words Oct 11th, 2014 4 Pages
The bookkeeping industry reported 242,152 businesses in the United States with an annual revenue stream of $41 billion in August of 2014. (Payroll, 2014) “The Payroll and Bookkeeping Services industry is in the mature stage of its economic life cycle. The industry is characterized by growth in line with the overall economy.” (Payroll) According to the Bureau of Labor Statistics (2014), the bookkeeping industry is projected to grow by 11% year over year from 2012 through 2022.
The economic recession hit the bookkeeping industry as many businesses went bankrupt or took bookkeeping services in house to save on costs. However, in the next five years, the growth of businesses is anticipated to elevate rapidly causing a demand for outsourced bookkeeping. Outsourced bookkeeping will allow businesses to focus on their core competencies of creating value for their customers and generating profits instead of the balancing of financial books. Additionally, financial regulations are constantly becoming stricter in response to the numerous corporate scandals and financial crises. This will also lead to a stronger demand for bookkeeping services as businesses search for reputable organizations to help with compliance with these new regulations.
While the right mix of products and services are important in any business, it is especially critical for a small bookkeeping service to find the right differentiated balance. According to Hoover’s data (2014), “Payroll services account for 25…

Related Documents