Accounting industry revenue continues to dip
Accounting industry revenues fell 2.2% in June to £3.57bn according to the latest ONS figures. This drop is atypical of annual trends where there is often an increase in revenues between May and June.
By comparison, the overall Services sector which includes the Accounting industry fell by 3.1% to £234.7bn in June 2024.
Source: ONS
Trends and patterns
The revenue figures show fluctuations throughout the period, but there’s no clear long-term upward or downward trend. The values oscillate between approximately £3,400 million and £4,300 million.
However, there does appear to be a seasonal pattern in the data:
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- March tends to show high revenue (£4,256.5M in 2023, £3,984.9M in 2024)
- January also shows relatively high figures (£3,925.7M in 2023, £3,979.9M in 2024)
- August seems to have lower revenue (£3,387.2M in 2023, no data for 2024 yet)
The UK accounting revenue data shows significant monthly fluctuations, likely influenced by seasonal factors and possibly by broader economic conditions. The high points in March might be related to the end of the UK tax year (April 5th), as businesses may require more accounting services during this period. The January peaks could be associated with year-end accounting activities for companies with December fiscal year-ends.
“Despite the wider economy showing slight positive growth in June, the Accounting industry continued to be under pressure, more marked in fact than performance in other services, notably the legal sector,” says Julie Matheson, Accounting Industry Regulatory Partner at Kingsley Napley.
“It must be hoped that the end to election uncertainty and recent interest rate cut will feed through to a more rosy picture for Accounting in the next set of ONS figures. However firmwide leaders should, as always, be keeping an eye on their cost base and continue to monitor for business and risk factors. The good news is that the sector was up year-on-year from revenues of £3.54bn recorded in June 2023. But only just.”
The year-over-year comparisons show mixed results, with some months showing growth and others decline. This suggests that the sector is not experiencing consistent growth or contraction but rather fluctuating performance.
The recent declining trend in the last three months of data (April to June 2024) might be a cause for concern if it continues, as it could indicate a slowdown in demand for accounting services. However, given the cyclical nature of the data, it’s important to view this in the context of longer-term trends and seasonal patterns.
