For the year ended 30th June 2018, 33,870 accounting firms produced revenue of $20b, a 1.5% increase over 2017. The Top 100 accounting firms dominate the Australian accounting market commanding 56% of the industry’s revenues, totaling $11.3b in 2018.
Excluding the Top 100 practices, there are another 33,770 practices producing combined annual revenues of $8.7b. This equates to just $257,625 per firm. Of course, all these 33,770 firms are not identical, with some having $4m revenue pa, and others as little as $20,000 pa.
As these small firms are predominantly compliance based, with no business advisory revenue their future looks uncertain. The firms that will survive and grow in the future, are the ones that retrain themselves to provide business advisory and tax planning.