Accounting Industry Trends

Expansion of Consulting Services

Many accounting firms have expanded into tax, technology, and business consulting. Consulting has become a particularly strong revenue source for larger accounting firms. Now barred from providing many consulting services to public companies they also audit, some large firms have dropped their audit practices.

More Fixed-Price Billing

Computer technology is reducing the time an accountant spends on a task, and the number of hours that can be billed to clients. A growing number of firms are starting to use fee pricing, by negotiating a fixed-price agreement at the outset of an accounting engagement. Like other professionals, accountants are basing prices on the value of their work to the customer rather than on the amount of time required.

Global Accounting Rules Converge

In an effort to harmonize global accounting standards, the Financial Accounting Standards Board is working to align US standards with the International Financial Reporting Standards developed by the International Accounting Standards Board. Standardized accounting will provide better understanding of foreign companies among international investors and business partners.

Online Tax Preparation

Many tax firms enable customers to help prepare their own tax returns using an interactive website. Such sites collect information from customers through questionnaires and prepare returns electronically. Data security is a major issue for many customers using these sites.