Europe’s Accounting and Auditing industry is well-established, with leading nations like the UK and Germany generating significant revenue, partly because London and Frankfurt are major global financial hubs. Growing enterprise numbers and employment rates have expanded the potential client pool for accounting and auditing firms. Despite the industry providing both procyclical and countercyclical services, volatile economic conditions have caused some operational disruption, though revenue has remained fairly resilient. Revenue is expected to inch upward at a compound annual rate of 0.4% over the five years through 2025 to €235 billion, including a forecast hike of 0.6% in 2025. Audit failings and poor service quality have led to enhanced regulations – most notably the introduction of the EU Audit Reform in 2016, aimed at enhancing standards and promoting competition. The reform forces large companies to change auditors every 20 years, diversifying the market by pushing more companies to use firms other than the Big Four. The industry has also come up against challenges from economic headwinds, including the COVID-19 pandemic, inflationary pressures and geopolitical tensions, which have sustained economic uncertainty and subdued business spending and deal-making activity. The industry has been subject to intense consolidation activity, particularly in the UK, where private equity influx has driven acquisitions. Strong competition and higher operational costs have forced firms to raise fees to protect revenue and profitability. Improving economic conditions will bolster business sentiment and investment and drive up M&A activity, fuelling demand for accounting, audit and tax consulting services. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €291.8 billion. Heightened business investment and M&A activity amid anticipated improvement in economic conditions, alongside a rising number of enterprises in Europe and solid employment rates, will fuel demand for accounting, audit and tax consulting services. Companies will also have to navigate mounting digitalisation, with AI and automated solutions helping to reduce costs and free up time for the provision of value-added services, but at the same time, advanced software enabling small businesses and individuals to carry out their own accounting and tax tasks, eating away at demand. The evolving regulatory environment for businesses, including sustainability reporting and tax reforms, will boost demand and create strong revenue stream opportunities for auditing and tax consulting firms. These specialised services also stand to support profit as more complex audits and regulations will drive firms to hike their fees.

Europe’s Accounting and Auditing industry is well-established, with leading nations like the UK and Germany generating significant revenue, partly because London and Frankfurt are major global financial hubs. Growing enterprise numbers and employment rates have expanded the potential client pool for accounting and auditing firms. Despite the industry providing both procyclical and countercyclical services, volatile economic conditions have caused some operational disruption, though revenue has remained fairly resilient. Revenue is expected to inch upward at a compound annual rate of 0.4% over the five years through 2025 to €235 billion, including a forecast hike of 0.6% in 2025. Audit failings and poor service quality have led to enhanced regulations – most notably the introduction of the EU Audit Reform in 2016, aimed at enhancing standards and promoting competition. The reform forces large companies to change auditors every 20 years, diversifying the market by pushing more companies to use firms other than the Big Four. The industry has also come up against challenges from economic headwinds, including the COVID-19 pandemic, inflationary pressures and geopolitical tensions, which have sustained economic uncertainty and subdued business spending and deal-making activity. The industry has been subject to intense consolidation activity, particularly in the UK, where private equity influx has driven acquisitions. Strong competition and higher operational costs have forced firms to raise fees to protect revenue and profitability. Improving economic conditions will bolster business sentiment and investment and drive up M&A activity, fuelling demand for accounting, audit and tax consulting services. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €291.8 billion. Heightened business investment and M&A activity amid anticipated improvement in economic conditions, alongside a rising number of enterprises in Europe and solid employment rates, will fuel demand for accounting, audit and tax consulting services. Companies will also have to navigate mounting digitalisation, with AI and automated solutions helping to reduce costs and free up time for the provision of value-added services, but at the same time, advanced software enabling small businesses and individuals to carry out their own accounting and tax tasks, eating away at demand. The evolving regulatory environment for businesses, including sustainability reporting and tax reforms, will boost demand and create strong revenue stream opportunities for auditing and tax consulting firms. These specialised services also stand to support profit as more complex audits and regulations will drive firms to hike their fees.