Accounting

Government regulation and the expansion of business, especially internationally, have created strong job opportunities in the accounting industry. Employment for accountants is expected to grow by 6 percent from 2021 to 2031, according to the U.S. Department of Labor (DOL), or about as fast as the average for all careers. Robert Half Finance and Accounting reports that "public accountants and auditors are in very high demand.” It identifies the following careers as in-demand: accounts payable/receivable clerk, auditor, bookkeeper, compliance analyst, controller, financial analyst, payroll manager, senior accountant, staff accountant, and tax accountant. Approximately 1 million people were employed in accounting, tax preparation, bookkeeping, and payroll services in the United States in May 2021, according to the DOL, although the number of accounting professionals is much higher because many accounting workers are employed in industry sectors that fall outside of this classification.

Accounting services firms in the United States generated revenue of $144.2 billion in 2022, according to Statista.com, up from $127.2 billion in 2016. Revenue at the top 100 U.S. public accounting firms (as ranked by Accounting Today) grew by 18.55 percent from 2021 to 2022—the strongest growth in nearly 25 years. Seventy-nine firms experienced revenue growth of 10 percent or more, and 27 of this total experienced revenue growth of more than 20 percent. The 10 largest public accounting firms in 2022 by sales revenue were Deloitte, PwC, EY, KPMG, RSM US LLP, BDO USA, Grant Thornton, CLA, Forvis, and Baker Tilly. The top 14 firms had revenue of at least $1 billion in 2022, with Deloitte earning $27.9 billion in revenue. In 2022, the top 14 public accounting firms employed 399,376 people (up from 268,398 in 2019), according to Accounting Today.

Accounting firms, often known today as professional services firms, are located in both the United States and abroad. The U.S. headquarters of the Big Four public accounting firms are located in New York City.

The public accounting industry is currently undergoing a major round of consolidation. “Firms in the Top 100 have seen tremendous success with mergers in the past several years,” according to Accounting Today. In 2022, there were 119 mergers reported by the top 100 public accounting firms (as ranked by Accounting Today).

Tax accounting continues to be a strong growth area in accounting. The 10 largest accounting firms in 2022 by sales revenue were EY, PwC, Deloitte, H&R Block, KPMG, RSM US LLP, Ryan, BDO USA, Ryan, and CLA. EY earned more than $5.1 billion in revenue from tax services (or 27 percent of total company revenue). It employed 50,400 workers at 100 offices. H&R Block earned 100 percent of its revenue from tax work. In 2022, it earned more than $3.4 billion in revenue. It employed 69,900 workers at 10,488 offices.

There are several key organizations in public accounting and auditing. The Association of International Certified Professional Accountants (AICPA) is the largest member organization in the accounting profession. It was founded after a recent merger of the American Institute of Certified Public Accountants and The Chartered Institute of Management Accountants. Members work in many sectors, including public practice, government, business, education, and consulting. The institute establishes ethical and U.S. auditing standards, develops and grades the Uniform CPA Examination, and offers specialty certification credentials. The AICPA has more than 431,000 members in 130 countries and territories. The Association of Chartered Certified Accountants (ACCA) is a global membership organization for accountants. It develops best practices, offers continuing education, and provides certificate and certification programs. The ACCA has 241,000 members in nearly 180 countries. The Institute of Internal Auditors is an international professional association with more than 200,000 members. It develops industry standards, offers certification, and provides continuing education. The Chartered Institute of Management Accountants (CIMA) is the world’s largest professional body of management accountants. It offers professional certification and develops practice standards for management accountants. The CIMA has 667,000 members and students in approximately 175 countries. Beta Alpha Psi is the international honor society for accounting students and professionals. It has over 300 college and university chapters and more than 300,000 members worldwide.

In 2018, 60.6 percent of accountants and auditors in the United States were women, according to Catalyst, but females comprised only 24 percent of partners and principals at firms.

In 2019–20, the AICPA reports that only 7 percent of students who earned bachelor’s and master’s degrees in accounting were African American, and only 13 percent were Latino Americans—percentages that are much lower than their representation in the U.S. population. Most major firms have diversity initiatives that aim to increase the number of women and minorities in partner positions and increase the overall number of minorities who enter the field. Several organizations aim to improve diversity in the field (especially in top-level positions) including the Accounting & Financial Women’s Alliance, ALPFA, Educational Foundation for Women in Accounting, and the National Association of Black Accountants. “In 2020, diverse hiring of new bachelor’s and master’s of accounting graduates into accounting/finance functions of U.S. CPA firms increased by almost five percentage points (includes multiethnic hires),” according to the AICPA’s 2021 Trends: A Report on Accounting Education, the CPA Exam and Public Accounting Firms’ Hiring of Recent Graduates. The report goes on to say that “Asian or Pacific Islander, Black or African American, and Hispanic or Latino new graduate new hires in accounting have all increased by near one or more percentage points (1.9, 0.6, 1.6 percentage points, respectively). These three groups comprise their highest (or very near their highest) percentage of the whole of new graduate new hires in the history of Trends’ data collection.”