Big Four fee growth outpaces smaller firms

Big Four fee growth outpaces smaller firms

Big Four firms report 7.7% increase in fees, while smaller firms grow by only 0.6%, FRC report finds

THE BIG FOUR accounting firms registered an impressive 7.7% increase in fee income over the last financial year, while smaller firms struggled with minimal growth of 0.6%, according to figures published by the accountancy regulator.

In its latest report into the accountancy profession, the FRC found that PwC, Deloitte, KPMG and Ernst & Young improved their earnings from audit work by 4.9%, while audit fees for the larger firms outside the Big Four fell by 5%.

Over the last five years the Big Four have steadily increased the proportion of fee income they derive from non-audit work for non-audit clients so that is now makes up 64% of the fee income, though the amount of work performed for audit clients continued to reduce to 13% of overall income.

The report also found that total membership of the main accountancy bodies continues to increase with growth rates for 2008-12 at 2.6% growth  in the UK and 3.5% worldwide. The seven institutes – ICAEW, ACCA, CIMA, AIA, ICAS, CIPFA, CAI – have over 319,000 in the UK and Ireland and 450,000 members worldwide.

Total numbers of students – a key benchmark for the attractiveness of the profession – increased by 2.3% worldwide, but experienced a 3.3% drop in UK numbers over the past year. UK student numbers have fallen 0.7% over the past five years.

“The report reveals a profession that continues to be attractive with the number of members continuing to increase both in the UK and worldwide,” said Paul George, executive director conduct at the FRC.

The ICAEW remains the largest institute in the UK and Ireland with 119,179 members, while ACCA is the largest body in terms of worldwide membership with 158,574 members around the world.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource