Last updated: 14 Oct 2024 12:00 Posted in:
The number of accountancy, bookkeeping and auditing companies operating in the UK has fallen by 3% in the past year, and almost 8% over the past five years.
Analysis from the Global Payroll Association (GPA) found 40,275 active companies in the sector (1.48% of all UK businesses). Five years ago the number of accountancy, bookkeeping and auditing firms was 43,575.
London has been particularly affected. There are currently 9,670 accounting companies (that’s 24% of the total). However, in 2018 there were 11,390, and the capital has seen a decline of over 15%.
Despite this widespread decline, three regions have still seen an increase in active businesses over the past five years.
The North West’s current total of 860 active businesses marks a 3% increase since 2018, while numbers are up 2.1% in Northern Ireland, and 0.8% in Wales.
Melanie Pizzey, CEO and Founder of the GPA, said: “The stark decline in the number of active accountancy, bookkeeping and auditing businesses suggests that more businesses are bringing their processes in-house in order to avoid the additional expense of outsourcing these services.
“You can’t blame them given the difficult economic environment we have been dealing with for a number of years, but given the importance of accountancy and bookkeeping, of which payroll plays an essential role, it’s vital that when bringing these services in-house, businesses are doing it properly.
“This means hiring experienced staff, installing good processes, and making use of the right software platforms.”