The accounting industry is experiencing a perfect storm: a massive talent shortage, rapid AI adoption, and cloud software transforming how businesses manage their finances. With 75% of CPAs nearing retirement and 70% of small businesses operating without an accountant, understanding these trends is essential for business owners and finance professionals alike.
These statistics reveal a $735 billion global industry in transition — from traditional bookkeeping to AI-powered automation, from desktop software to cloud-first solutions.
Key Takeaways
- The global accounting services market is worth $735.94 billion in 2025
- 70% of small businesses don't have an accountant
- 78% of small businesses now use cloud-based financial tools
- QuickBooks holds 62% market share in accounting software
- 75% of CPAs will retire within the next 15 years
- The Big Four firms generated $212 billion in combined revenue
How Much Is the Accounting Industry Worth?
1. The global accounting services market is worth $735.94 billion in 2025
According to The Business Research Company, the global accounting services industry has grown significantly from $544 billion in 2020, driven by digital transformation and increasing regulatory complexity.
2. The US accounting services market is valued at $145.5 billion
The United States represents the largest accounting market globally, with over 85,322 accounting businesses operating nationwide. The top 4 companies control 42.8% of the market share.
3. The market is projected to reach $804 billion by 2029
The accounting services industry is expected to grow at a 5.1% compound annual growth rate through 2029, fueled by increasing demand for advisory services, compliance, and digital transformation consulting.
4. AI in accounting is projected to reach $16 billion by 2028
The AI accounting market is experiencing explosive growth at approximately 45% annually, as firms adopt automation for bookkeeping, fraud detection, and financial analysis.
How Many Small Businesses Have an Accountant?
5. 70% of small businesses operate without an accountant
According to Clutch research, the majority of small businesses handle finances internally. Almost half (45%) employ neither an accountant nor a bookkeeper, often relying on the owner or a single employee for all financial tasks.
6. 71% of small businesses outsource at least one accounting function
While many don't have dedicated staff, most small businesses still outsource specific tasks like tax preparation, payroll, or year-end reporting. Among those with accountants, 22% use outsourced professionals.
7. Small business owners spend 80+ hours per year on bookkeeping
That's two full work weeks annually lost to balancing ledgers, chasing receipts, and reconciling accounts — time that could be spent growing the business.
8. Limited financial literacy costs small business owners $118,121 in average profit loss
A shocking 42% of small business owners admit to limited or no financial literacy before starting their business. This knowledge gap directly impacts profitability and business survival rates.
Key Insight: 98% of small business owners with accountants report that their accountant enhances their confidence, and 90% say their accountant contributes to business growth.
9. 72% of small businesses have one person handling both HR and accounting
Resource constraints force many small businesses to combine roles. This is especially common among businesses with 10 or fewer employees, creating potential for errors and compliance issues.
10. Bookkeeper rates average $22.80/hour; accountants earn $39/hour median
According to the Bureau of Labor Statistics, bookkeepers earn around $22.80/hour while accountants have a median pay of $39/hour ($81,680 annually). Monthly bookkeeping packages range from $250-$900 for small businesses.
How Many Businesses Use Cloud Accounting Software?
11. 78% of small businesses globally rely on digital finance tools
Cloud-based systems have become the standard for real-time financial visibility and remote collaboration. The shift accelerated dramatically during the pandemic and continues to grow.
12. QuickBooks holds 62% market share in accounting software
Intuit's QuickBooks dominates the accounting software market, far ahead of competitors ADP (14.3%), Sage 50 (10.3%), and Xero (8.9%). Among US small businesses specifically, QuickBooks Online controls approximately 80% of the market.
13. The accounting software market reached $21.56 billion in 2025
This market is forecast to grow to $33.47 billion by 2030 at a 9.2% CAGR, driven by cloud adoption, AI integration, and increasing automation demands.
14. Cloud deployments account for 67% of accounting software revenue
Cloud-based solutions have overtaken desktop software decisively. About 80% of QuickBooks users in 2024 chose QuickBooks Online over desktop versions, highlighting the ongoing migration to cloud.
| Software | Market Share | Primary Market |
|---|---|---|
| QuickBooks | 62.23% | Global (US dominant) |
| ADP | 14.30% | Enterprise payroll |
| Sage 50 | 10.30% | UK/Europe |
| Xero | 8.90% | Australia/NZ (75%) |
15. Xero dominates Australia/New Zealand with 75% market share
While QuickBooks leads globally, Xero has captured the Australian and New Zealand markets. The platform now supports millions of users across 180+ countries and continues expanding globally.
16. 25% of small businesses still record finances on paper
Despite digital transformation, one-quarter of small businesses haven't adopted any accounting software. Meanwhile, 53% use accounting software, leaving a significant gap for digital adoption.
Regional Adoption: Cloud accounting adoption varies: North America leads at 63%, followed by Asia-Pacific (56%), Europe (48%), and Middle East & Africa (38%).
How Bad Is the CPA Shortage?
17. 75% of CPAs are nearing retirement age
According to the AICPA, this demographic wave is creating an estimated 136,400 annual job openings through 2034. The profession faces its most severe talent crisis in decades.
18. The accounting workforce has shrunk 17% since 2020
According to the Bureau of Labor Statistics, over 300,000 professionals have left the field — approximately 340,000 fewer accountants than five years ago. Many have moved to higher-paying roles in tech, investment banking, and private equity.
19. CPA exam candidates have dropped 27% over the past decade
The pipeline of new CPAs is drying up. In 2022, the lowest number of individuals took the CPA exam since 2006. The 150-credit-hour requirement — an extra year of education beyond a bachelor's degree — deters many potential candidates.
20. Only 1.4% of college students now choose accounting as their major
Down from 4% just a decade ago, fewer students are entering the profession. The combination of demanding hours, the 150-hour rule, and better-paying alternatives has significantly reduced interest.
21. 90% of finance leaders report difficulty finding qualified professionals
According to Robert Half's 2025 Talent Report, the shortage is hitting businesses hard. About 78% of firms struggle to hire, and 45% say this talent crunch is slowing their growth.
22. Public accounting starting salaries are rising 9% in 2025
Firms are responding to the shortage with aggressive compensation increases. EY announced a 10%+ salary hike as part of a $1 billion, three-year investment to attract and retain talent.
How Much Do the Big Four Accounting Firms Make?
23. Deloitte leads with $67.2 billion in 2024 revenue
Deloitte remains the largest of the Big Four, followed by PwC ($55.4B), EY ($51.2B), and KPMG ($38.4B). Combined, these four firms generated $212.2 billion in revenue.
| Firm | 2024 Revenue | Employees |
|---|---|---|
| Deloitte | $67.2 billion | ~460,000 |
| PwC | $55.4 billion | ~364,000 |
| EY | $51.2 billion | ~400,000 |
| KPMG | $38.4 billion | ~275,000 |
24. The Big Four audit 100% of the Fortune 500
Deloitte, PwC, EY, and KPMG have an absolute monopoly on Fortune 500 audits. They also audit over 80% of all publicly traded companies and employ over one million professionals across 150+ countries.
25. PwC serves 85% of Fortune Global 500 companies
Beyond auditing, PwC provides advisory, tax, and consulting services to the vast majority of the world's largest corporations, demonstrating the deep integration of Big Four services in corporate America.
2025 Workforce Changes: Despite revenue growth, Big Four firms are restructuring. PwC cut 5,600 jobs globally, Deloitte announced US layoffs, and EY intensified cuts across Audit, Tax, and Consulting.
How Is AI Transforming Accounting?
26. 95% of accounting firms adopted automation technologies in 2024
According to the 2025 Intuit QuickBooks survey, automation has become nearly universal. Top uses include payroll processing (47%), accounts payable/receivable (46%), and data entry (43%).
27. 64% of accounting firms plan to invest in AI this year
AI investment has grown steadily: 48% in 2023, 57% in 2024, and now 64% in 2025. Firms recognize that AI adoption is essential for competitiveness and managing the talent shortage.
28. 46% of accounting professionals use AI daily
Nearly half of accountants now use AI tools daily — almost double the rate of small businesses (28%). AI has become an everyday tool rather than an emerging technology in the profession.
29. AI-trained accounting staff save up to 7 weeks per year
According to Karbon's State of AI in Accounting 2025, firms that properly train staff on AI tools see dramatic productivity gains — equivalent to nearly two months of additional capacity per employee.
30. Automation delivers 98% accuracy improvement
Firms using automation report near-unanimous improvements: 98% improved accuracy, 97% improved efficiency, and 95% improved client service quality. The ROI on automation investment is clear.
31. 30% of routine accounting work could be automated by 2030
Research estimates that nearly a third of traditional accounting tasks will be performed by computers within five years. However, 55% of professionals believe AI will lead to job reductions, while 45% expect new roles to emerge.
How Many Tax Returns Are Filed with Professionals?
32. More than half of all tax returns are filed with professional help
According to the IRS, most Americans still rely on tax professionals for filing. While software has increased DIY filing, the complexity of tax law keeps professionals in high demand.
33. The IRS received 140.6 million returns in the 2025 filing season
This represents a 1.1% increase from 2024. The IRS processed 138 million returns, with over 95% filed electronically. About 62% of processed returns resulted in refunds.
34. Total refunds in 2025 reached $253 billion (up 3.2%)
The IRS issued 86 million refunds with an average refund of $2,942 — up 3.3% from the previous year. The 2025 filing season was described as "one of the most successful in recent memory."
35. The IRS suspended 13 million returns for additional review
Despite overall success, processing delays affected many taxpayers. These suspensions generally translated into refund delays as the IRS flagged returns for identity verification or error correction.
36. IRS workforce was reduced by 26% heading into 2026
The National Taxpayer Advocate warned that significant workforce reductions and upcoming tax law changes create risks for future filing seasons, even as 2025 was successful.
Summary
The accounting industry in 2025 is defined by transformation and tension. A $735 billion global market faces a critical talent shortage — 75% of CPAs retiring soon, 340,000 fewer accountants than five years ago, and 90% of firms struggling to hire.
Technology offers both the solution and the disruption: 95% of firms now use automation, 78% of businesses rely on cloud tools, and AI could automate 30% of routine work by 2030. For small businesses, the choice is clear — whether hiring an accountant, adopting software, or embracing AI, proper financial management is no longer optional.
| Metric | Statistic |
|---|---|
| Global Industry Size | $735.94 billion |
| US Market Size | $145.5 billion |
| Small Businesses Without Accountants | 70% |
| Cloud Software Adoption | 78% |
| QuickBooks Market Share | 62% |
| CPAs Nearing Retirement | 75% |
| Big Four Combined Revenue | $212.2 billion |
| Firms Using Automation | 95% |
Sources
- The Business Research Company - Accounting Services Market Report 2025
- IBISWorld - Accounting Services in the US
- Clutch - Small Business Accounting Resources
- DocuClipper - Accounting & Bookkeeping Statistics 2025
- ElectroIQ - QuickBooks Statistics 2025
- Karbon - State of AI in Accounting 2025
- Intuit - 2025 QuickBooks Accountant Survey
- IRS - Filing Season Statistics