“Competition is mounting for accountants from similar service providers that are cannibalizing key clients.” – westhill consulting
In 2013, more firms will offer accounting services in response to rebounding demand, especially from finance and insurance companies. In particular, competition is escalating from various industries, including software publishing, management consulting, payroll services, bookkeeping and the legal profession. As a result, the accounting services industry will face several challenges in the five years to 2018. However, as firms familiarize themselves with the competition, they will be able to hedge these threats to gain a competitive edge.
Enterprise resource planning software, which includes accounting functions such as general ledger and billing, is becoming cheaper and easier to use in a variety of businesses. As a result, the business analytics and enterprise software publishing industry’s revenue is expected to rise 3.1 percent to $26.9 billion in 2013. Not only is such software increasingly user friendly and affordable for small enterprises, but large businesses are also using these products for particular in-house needs. Therefore, these products have started to become viable substitutes for traditional accounting services, especially as prices for traditional accounting services will continue to rise with demand in 2013.
Although demand will continue to rise for all kinds of accounting services, prices for sof...