Industry Snapshot
Accountancy
A concise intelligence brief on the Accountancy sector — covering market size, key trends, regulatory context, and business opportunities across the UK. Published by poundswise.
Introduction
The UK accountancy industry provides a broad range of audit, payroll and bookkeeping services, along with advice on business, taxation, inheritance, pensions and financial planning. The industry is dominated by the 'big four' — Deloitte, Ernst & Young, KMPG and PwC. There are also thousands of independent accountants and smaller accountancy practices.
While the accountancy industry has recorded strong growth over the last five years, it is facing a number of challenges that threaten its outlook. These include increased competition within the industry, changing client expectations, the growing use of AI, and digital transformation.
Industry at a Glance
30,032
Accountancy firms in 2025, down 1.4% year-on-year
+4.1%
Industry CAGR — increase in industry turnover in 2025
+2.9%
Increase in industry employment in 2025
5.6%
Forecast CAGR in accountancy market between 2023 and 2033
Charts & Data
Accountancy Trends in 2026
- 1
Automation
- 2
Digitisation
- 3
AI solutions
- 4
Advisory services
- 5
Outsourcing
Accountancy Firms by Size in 2025
The UK accountancy sector is dominated by the 'big four' global practices. The vast majority of firms are small independent practices.
Sole traders
Single-person practices
2–9 employees
Micro firms
10–49 employees
Small firms
50–249 employees
Medium firms
250+ employees
Large & big-four firms
Industry Trends
- —
5.6% forecast CAGR in accountancy market between 2023 and 2033.
- —
1.7% CAGR in bookkeeping market between 2020 and 2025.
- —
0.1% CAGR in tax consultant market between 2019 and 2024.
- —
2% average annual fall in number of accountancy firms between 2019 and 2024.
Industry Outlook
Ongoing shift to strategic advice
The growing use of automation and AI for routine accountancy tasks is encouraging more accountants to focus on providing strategic, advisory-focused services. In particular, more accountants are offering specialist and bespoke advice covering forecasting, business planning and decision making.
Making Tax Digital a growing opportunity
The introduction of Making Tax Digital for Income Tax for sole traders and landlords with an annual qualifying income of more than £50,000 is expected to be a significant opportunity for accountancy firms in 2026. Many sole traders and landlords are planning to turn to accountants for advice on digital record keeping and complying with the new requirements.
Growing demand for boutique firms
A growing number of clients say they are more likely to change accountants if they are unsatisfied with the quality of the work. As a result, demand for smaller, independent 'boutique' accountancy firms that are perceived as offering more bespoke services in comparison with larger competitors is expected to increase in 2026/27.
Industry facing period of consolidation
The accountancy industry is facing a period of consolidation, with mergers and acquisitions expected to become more common as firms seek to scale efficiencies and expand service offerings. Larger accountancy firms are also turning to freelance accounting professionals who have skills in emerging and growing areas, such as social governance, automation and digital transformation.
AI continuing to reshape industry
AI is expected to reshape the accountancy industry rapidly over the next five years. The use of AI to automate high-volume, low-skill tasks such as data entry and invoice processing is set to increase. AI will also be used to help improve work quality by detecting errors and anomalies in data, as well as to provide real-time reporting and insights into client behaviours.
Firms facing increased competition
Attracting and retaining clients is a key priority for accountancy firms in 2026 due to growing competition within the industry. Providing fixed price bundles for common accountancy services is one of the key growth areas in 2026, along with leveraging technology, focusing on high-value niches and advisory-led services, and improving client experience.