Accounting Firms

UK accounting industry sees April turnover decline 15.8%

Although the results were lower than the previous month, it was the highest on record for April which typically lags behind March numbers for cyclical reasons

The UK accounting industry was hit with a 15.8% decline in turnover to £2.92bn in April 2021 compared with March 2021 which saw turnover reach £3.46bn, according to the latest Office of National Statistics (ONS) figures.

Although the results were lower than the previous month, it was the highest on record for April which typically lags behind March numbers for cyclical reasons.

April 2021 was also reportedly the fourth highest month on record, up by 32.1% from the previous year which saw a turnover of £2.1bn.

Furthermore, accounting industry revenues were less resilient than the overall UK services sector which fell 9.8% month on month to £177.5bn.

Julie Matheson, regulatory partner, accounting services at Kingsley Napley LLP, said: “This is evidence that the accounting industry has adjusted to the Covid-19 environment across the UK.

“After the uncertainty of 2020, the sector has flexed to a new normal, above pre-pandemic levels. Accounting firm leaders are no doubt seeking to adjust their business models to serve raised client demand whilst also considering the future in the face of impending regulatory reforms.”

She added: “Leaders should remain vigilant of the need to support their staff whether they are still working from home or are increasingly coming back into the office on a part time basis.”

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