Predictions for a Consolidating Accounting Industry

I was recently asked to share my predictions for the accounting industry with regard to the trend of the consolidation of CPA firms throughout the U.S. This is what I think: Accounting industry consolidation will most likely reflect similar affects that other industries have experienced as they have consolidated – broadcasting, banking and aerospace/defense come to mind. Each of these industries’ consolidation reported advances in information processing and overall reignited growth. The larger, national providers enjoyed growth that was fueled by advanced technologies and all enjoyed efficiency gains. I predict this will be the same for the accounting industry but would add that, like the banks, pricing will still be largely influenced by local, smaller providers as clients most likely remain with local providers. Larger firms will also likely continue to outsource work to other countries, also reducing internal costs and regaining higher profits while doing so.

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