Summary
- • The global bookkeeping services market size was valued at USD 57.34 billion in 2022
- • The bookkeeping services market is expected to grow at a CAGR of 5.4% from 2023 to 2030
- • North America dominated the bookkeeping services market with a share of 38.2% in 2022
- • The Asia Pacific region is expected to witness the fastest CAGR of 6.5% in the bookkeeping services market from 2023 to 2030
- • 61% of small businesses use accounting software for bookkeeping
- • 40% of small business owners say bookkeeping and taxes are the worst part of owning a business
- • The average salary for a bookkeeper in the United States is $44,730 per year
- • There were approximately 1,620,000 bookkeeping, accounting, and auditing clerks employed in the US in 2020
- • Employment of bookkeeping, accounting, and auditing clerks is projected to decline 3% from 2020 to 2030
- • 82% of small businesses fail due to poor cash flow management
- • 29% of small businesses fail because they run out of cash
- • 60% of small business owners feel they are not very knowledgeable about accounting and finance
- • The global cloud accounting software market size was valued at USD 4.25 billion in 2021
- • The cloud accounting software market is expected to grow at a CAGR of 8.5% from 2022 to 2030
- • 67% of accountants prefer cloud accounting to traditional methods
Numbers dont lie, but they sure can tell a story! Dive into the fascinating world of bookkeeping with statistics that will make even the most numbers-averse person sit up and take notice. From the burgeoning global market size of bookkeeping services to the woes small business owners face when tackling taxes, these figures paint a vivid picture of an industry where dollars and data converge in unexpected ways. So, grab your calculator and get ready to be amazed by the wild world of bookkeeping!
Business Challenges
- 40% of small business owners say bookkeeping and taxes are the worst part of owning a business
- 82% of small businesses fail due to poor cash flow management
- 29% of small businesses fail because they run out of cash
- 60% of small business owners feel they are not very knowledgeable about accounting and finance
- 40% of small businesses spend over 80 hours per year on tax preparation
- The average small business spends $5,000 to $10,000 per year on accounting and bookkeeping services
- 89% of small business owners say they are more successful when they work with an accountant
- 65% of small business owners are confident in their ability to manage their business finances
- 50% of small business owners say that managing their cash flow is their biggest challenge
- The average small business owner spends 120 working days per year on administrative tasks
- 53% of small businesses handle payroll themselves
- 25% of small businesses have no visibility into their company's financial performance
- 40% of small businesses say bookkeeping and taxes are the worst part of owning a business
- 82% of businesses fail due to poor cash flow management
- 60% of small business owners feel they are not very knowledgeable about accounting and finance
- 65% of small business owners are confident in their ability to manage their business finances
- 50% of small business owners say that managing their cash flow is their biggest challenge
Interpretation
In a world where numbers tell a story, the saga of small businesses navigating the treacherous waters of bookkeeping and finances unfolds like a melodrama. From the dreaded tax season that haunts 40% of owners to the cash flow misfortunes that sink 82% of ventures, the script is filled with plot twists and challenges at every turn. With protagonists feeling like fish out of water in the murky realm of accounting, the quest for a trustworthy accountant becomes their saving grace, leading to a triumphant 89% success rate for those who find their financial knight in shining calculator. Yet, amidst the chaos and uncertainty, there are those self-assured 65%, bravely taking on the financial dragons with a glint of confidence in their eyes, even as the cash flow conundrum looms large. As small businesses wage their battle against spreadsheets and soar through the maelstrom of administrative tasks, their fate hangs in the balance, with the only certainty in this epic tale being the undeniable importance of mastering the art of financial management.
Employment and Wages
- The average salary for a bookkeeper in the United States is $44,730 per year
- There were approximately 1,620,000 bookkeeping, accounting, and auditing clerks employed in the US in 2020
- Employment of bookkeeping, accounting, and auditing clerks is projected to decline 3% from 2020 to 2030
- The average salary for a certified public accountant (CPA) in the United States is $73,800 per year
- There were approximately 1,392,200 accountants and auditors employed in the US in 2020
- Employment of accountants and auditors is projected to grow 7% from 2020 to 2030
Interpretation
In the world of numbers and ledgers, bookkeepers may be facing a slight decline in employment opportunities, but fear not, for the accountants and auditors are here to save the day with their projected growth! While bookkeepers hold down the fort with an average salary of $44,730, CPAs swoop in with their $73,800 paychecks, ready to crunch those numbers with precision. So, whether you're meticulously balancing the books or strategizing financial futures, just remember - behind every successful CPA, there's a steadfast bookkeeper keeping things in check.
Market Size and Growth
- The global bookkeeping services market size was valued at USD 57.34 billion in 2022
- The bookkeeping services market is expected to grow at a CAGR of 5.4% from 2023 to 2030
- The global accounting services market size was valued at USD 574.39 billion in 2020
- The accounting services market is expected to grow at a CAGR of 5.4% from 2021 to 2028
- The global forensic accounting services market size was valued at USD 17.08 billion in 2020
- The forensic accounting services market is expected to grow at a CAGR of 8.9% from 2021 to 2028
- The global management accounting services market size was valued at USD 160.81 billion in 2020
- The management accounting services market is expected to grow at a CAGR of 6.1% from 2021 to 2028
Interpretation
The numbers don't lie, and neither do bookkeepers. With the bookkeeping industry growing at a steady clip, it seems like balancing the books is not just a passing fad. From forensic accounting to management accounting, the numbers are adding up to some serious business growth. So, if you're looking for a career that's as reliable as a well-kept ledger, maybe it's time to sharpen those number-crunching skills and join the ranks of the unsung heroes of finance. After all, in a world full of uncertainties, at least we can count on the fact that someone will always need to double-check those debits and credits.
Outsourcing Trends
- 23% of small businesses outsource their accounting and bookkeeping
- 71% of small and medium-sized businesses outsource their tax preparation
- 68% of small businesses use an external tax preparer
- The global payroll outsourcing market size was valued at USD 17.14 billion in 2020
- The payroll outsourcing market is expected to grow at a CAGR of 5.2% from 2021 to 2028
- 70% of small businesses outsource tax preparation to a CPA or enrolled agent
- 71% of small businesses outsource at least one accounting function
- 23% of small businesses outsource their bookkeeping
Interpretation
These statistics paint a clear picture: when it comes to numbers, many businesses prefer to outsource the headache. It seems like crunching those numbers and balancing those books are tasks best left to the professionals, with a significant percentage of small and medium-sized businesses opting for external help in their accounting, bookkeeping, tax preparations, and payroll management. In this digital age, where time is money and accuracy is key, perhaps it's no surprise that more and more companies are choosing to delegate these financial responsibilities to experts. After all, who wouldn't want to pass the calculator and stress ball to someone else?
Regional Analysis
- North America dominated the bookkeeping services market with a share of 38.2% in 2022
- The Asia Pacific region is expected to witness the fastest CAGR of 6.5% in the bookkeeping services market from 2023 to 2030
Interpretation
It seems that North America is holding the fort when it comes to bookkeeping services, proving that they can balance the books like no other. Meanwhile, the Asia Pacific region is gearing up to show off their rapid numerical prowess, ready to crunch numbers at a breakneck speed. With a market that keeps growing, it's clear that bookkeepers are the unsung heroes keeping businesses on track, no matter which side of the globe they're on.
Technology Adoption
- 61% of small businesses use accounting software for bookkeeping
- The global cloud accounting software market size was valued at USD 4.25 billion in 2021
- The cloud accounting software market is expected to grow at a CAGR of 8.5% from 2022 to 2030
- 67% of accountants prefer cloud accounting to traditional methods
- 58% of large companies use cloud-based accounting software
- 44% of small businesses track their finances using spreadsheets
- 30% of small businesses use paper and pen to track their finances
- The global accounting software market size was valued at USD 12.01 billion in 2020
- The accounting software market is expected to grow at a CAGR of 8.5% from 2021 to 2028
- 64% of small businesses use accounting software
- 67% of accountants prefer cloud accounting to traditional methods
- 58% of large companies use cloud-based accounting software
- The global tax preparation software market size was valued at USD 1.61 billion in 2020
- The tax preparation software market is expected to grow at a CAGR of 11.5% from 2021 to 2028
- 44% of small businesses use accounting software to manage their finances
- 30% of small businesses still use paper and pen to track their finances
Interpretation
In a world where numbers reign supreme, it seems that the battle of the books is being fought in the cloud. With a majority of small businesses embracing accounting software and accountants swooning over cloud-based solutions, the traditional pen and paper method is starting to look as outdated as a calculator watch. The global accounting software market is booming faster than a Wall Street stock exchange, leaving spreadsheets scrambling to keep up. As the numbers continue to climb, it's clear that the future of bookkeeping is digital, dynamic, and definitely not written in pencil. So, whether you're a spreadsheet loyalist or a cloud accounting convert, just remember: in the realm of numbers, the only way is up.
Technology Trends
- 85% of accountants believe that artificial intelligence will have a significant impact on the profession in the next 5 years
- 45% of accounting tasks are expected to be automated by 2025
- 75% of CPAs say that blockchain will have a significant impact on the accounting profession in the next 5 years
- 90% of accountants believe that there is a cultural shift towards digital transformation in accounting
- 85% of accountants believe that artificial intelligence will have a significant impact on the profession in the next 5 years
- 45% of accounting tasks are expected to be automated by 2025
- 75% of CPAs say that blockchain will have a significant impact on the accounting profession in the next 5 years
Interpretation
In a world where numbers talk, these statistics paint a clear picture of the evolving landscape of the bookkeeping industry. With 85% of accountants anticipating the looming presence of artificial intelligence and a whopping 45% of tasks projected to be automated by 2025, one thing is certain: change is not only on the horizon but knocking on the door. The rise of blockchain technology also promises to shake up the accounting profession, as 75% of CPAs acknowledge its significant impact. Amidst this digital upheaval, a resounding 90% of accountants recognize the cultural shift towards embracing digital transformation. The future of bookkeeping may very well be a balancing act of tradition and innovation, where numbers not only tell the story but also shape the narrative.