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Accounting Statistics for Small Businesses: A Roundup

Posted by Devayani Bapat

April 2, 2024

All the numbers you need to know.

Accounting is the backbone of every business, regardless of size. It encompasses managing accounts payable, accounts receivable, cash flow, and taxes. Especially in the early stages, small business owners often find themselves shouldering the responsibility of handling these financial duties despite the time-consuming nature of strenuous tasks like tax preparation.  

As businesses grow, the burden of accounting can be overwhelming, prompting many small businesses to opt for outsourced accounting services. This lets team members concentrate on their core responsibilities, enhancing overall efficiency and productivity.  

We’ve compiled a set of accounting statistics to illuminate the significance of accounting in small businesses and the role of accounting professionals. These statistics offer valuable insights into how small companies nationwide manage their finances and the pivotal role of accounting firms and professionals in supporting their success.

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A little about the field:

In accounting, firms are not just number crunchers; they also provide essential booking and accounting services, which 79% of accounting firms embrace. This statistic highlights the diverse array of offerings within the accounting industry, catering to a wide range of financial needs.  

As stated in a report by IBIS World, the sheer scale of the accounting landscape in the U.S. is striking. A whopping 886k accounting firms operate nationwide, highlighting the accounting profession’s significance in supporting businesses and individuals.  

This showcases the breadth of opportunities available within this field. From entry-level positions to senior roles, the accounting industry has a diverse range of career paths to pick and choose from for individuals with a passion for numbers and finance.  

If you’re an aspiring professional in the accounting world, you should note that patience is a virtue; it takes an average of 10 to 15 years for an employee to ascend to partnership status within accounting firms of all types. This statistic underscores the commitment and dedication required to reach the hierarchy in the accounting profession.


General Accounting Statistics:

  1. According to a report by Statista, in 2023, the estimated revenue generated by accounting services in the United States nearly reached 145 billion U.S. dollars, representing a marginal increase from approximately 144.2 billion U.S. dollars recorded in 2022. 
  2. A survey by Accounting Today shows that 51% of firms struggle with keeping up with regulatory changes, which is the most significant challenge in financial management. 
  3. Findings by Sage showcased that 62% of accounting professionals express concerns regarding the adequacy of current accountancy training programs. These programs may not provide employees with the requisite skills to effectively manage and run successful practices by 2030.


Small Business Owner Statistics: 

  1. A recent study shows that Generation Xers dominate small business ownership at 47.2%, followed closely by Baby Boomers at 39.6% and Millennials at 12.9%. This generational breakdown offers insights into the age demographics driving entrepreneurial endeavors in the current landscape. 
  2. The racial and ethnic composition of small business owners reveals a predominance of White or Caucasian individuals, followed by Black or African-American, Asian or Asian-American, and Hispanic, Latino, or Spanish-origin groups. This diversity snapshot underscores the importance of fostering inclusive entrepreneurship initiatives. 
  3. Recent statistics from the U.S. Small Business Administration demonstrate a striking fact: approximately 33.3 million small businesses are in operation in the United States, constituting 99.9% of all companies in the nation. This data highlights the overwhelming presence of small-scale enterprises in the business landscape, emphasizing their substantial contribution to job creation and economic resilience. 
  4. The point above holds as, according to an article by Forbes, small businesses have generated over 12.9 million jobs in the U.S. job market over the past 25 years.

Tech in Accounting:

The Gitnux Market Data Report 2024 shows that: 

  1. Most firms, including 94% of large and 90% of small firms, are turning to technology to enhance efficiency during tax seasons, seeking improved processes and outcomes. 
  2. 56% of accounting professionals recognize technology’s role in boosting productivity, with 27% emphasizing its time-saving capabilities, which enable them to dedicate more attention to customer service. 
  3. Technology bolsters staff engagement and morale for 60% of large firms, which are essential factors in staff retention strategies. 
  4. A notable 43% of surveyed firms are in the process of downsizing physical office spaces or transitioning to a virtual-only presence, reflecting a shift toward digital operations. 
  5. Overwhelmingly, 91% of firms acknowledge that technology enables them to prioritize client needs and increase productivity. However, only a small percentage of firms feel they are maximizing the full potential of their current technology. 
  6. Cloud-based accounting solutions are a game-changer, with firms experiencing a rise in revenue growth and customer acquisition rates. As a result, 61% of users consider transitioning their accounting software to the cloud, with 77% reporting positive outcomes from adopting cloud accounting trends.

The Future: 

The future for the accounting industry is looking heavily tech-focused and bright. The Gitnux Market Data Report 2024 sheds some light on some significant numbers that showcase predicted growth. Let’s dive in:

  1. The global accounting services market is poised for significant growth. It is projected to reach 735.94 billion USD by 2025. This expansion reflects the increasing demand for accounting expertise in a dynamic business landscape. 
  2. A noteworthy 90% of accountants worldwide observe a notable cultural shift within the accountancy profession. This shift likely stems from evolving client expectations, technological advancements, and regulatory changes shaping the industry’s landscape. 
  3. While overall revenue growth expectations remain steady, firms have a diverse range of growth projections. About 18% anticipate high single-digit growth, while 20% expect more moderate growth between 1 and 3%. 
  4. Concerns about the adequacy of current accountancy training programs persist, with 62% of professionals expressing doubts about their sufficiency to prepare practitioners for the complexities of running successful practices by 2030. 
  5. The accounting profession is increasingly open to diversifying its talent pool, with 82% of accountants considering recruitment from non-traditional backgrounds. This shift highlights the industry’s recognition of the value of diverse perspectives and skill sets. 
  6. A notable 63% of companies are investing in training or planning to train employees in financial business advisory services, indicating a growing emphasis on expanding service offerings beyond traditional accounting functions. 
  7. Cloud accounting solutions are gaining traction, with the market expected to reach 4320 million USD by 2024. This upward trend underscores the industry’s embrace of technology-driven solutions to enhance efficiency and scalability in accounting practices.

The Key Takeaway:

In conclusion, the accounting industry has been riding the wave of change fueled by technology advancements, increased connectivity, and cloud-based solutions. Firms must adapt to these trends to remain competitive and enhance efficiency. Embracing change can be daunting, but clinging to outdated practices risks obsolescence in the rapidly evolving accounting landscape.  

While change may present challenges, stagnation poses an even more significant threat. As a small business, you must embrace innovation in finance and accounting and stay updated with industry trends. The journey towards modernization may require time and effort, but the time to start is now. By embracing change, staying informed, and staying on top of predicted industry numbers, accounting professionals can confidently navigate the shifting landscape and secure a prosperous future in the industry.


Want to know more? In addition to H.R. benefits, recruiting, and payroll through its PeopleOps, Escalon’s Essential Business Services include FinOps (CFO services, taxes, bookkeeping, and accounting) and Risk (business insurance). Talk to an expert today.

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.

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Devayani Bapat
Devayani Bapat

With 6 years of experience in copywriting and social media management across genres, Devayani's heart lies with weaving words into stories and visuals into carefully crafted narratives that’ll keep you wanting more. She carries with her, her pocket notebook, a trusted confidante that goes with her wherever she goes, and scribbles down into it anecdotes on the go. Her secret weapon for keeping all things copy interesting! Apart from writing, Devayani is huge on travelling. You'll find her booking her next adventure while she's on her current one. And while on those adventures, you'll find her devouring true crime books one after the other. Whether it's a low down on a recent case or one that occurred 70 years ago, she can cook up a story narration you'll never forget.

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