UK accounting industry turnover up 16.6% to £4.3bn in March

The UK’s accounting industry turnover reached £4.3bn in March, the highest on record, increasing by 16.6% compared with the previous month, according to recent ONS data. 

As a result, the Managing Partners’ Forum Confidence index showed a “highly positive” outlook amongst accountancy firm leaders, as the sector’s performance remained consistent with the wider business sector in March 2023. 

Today’s (12 March) ONS data also shows that the UK services sector, which includes accounting, had a turnover of £247.3bn in March, an increase of 16.5% from February 2023. 

In addition, the spring 2023 Managing Partners’ Forum Confidence index recorded a net expansion and contraction in projected activity levels of 84% in April 2023, compared with 43% in October 2022 and 88% in March 2022.

Julie Matheson, regulatory partner of accounting services at Kingsley Napley LLP, said: “March is often the best month of the year for sector performance but revenues reached a new high this March, which is remarkable. It seems February’s dip was thankfully a one-off. 

“Taken together, these figures suggest the recent pressures on the sector are easing and that activity is picking up again in line with the macroeconomic picture. Firm leaders should, however, continue to keep a close eye on the wider economy and sector specific factors which add to the challenges of running an accounting business in today’s world.”

Richard Chaplin, founder and chief executive of the Managing Partners’ Forum, added: “Our latest quarterly trends tracker of professional services firm leaders suggests they see expanding work pipelines ahead and that concerns about the economic outlook are abating.

“Yet, tellingly, increasing operational efficiency remains a priority for firms in the year ahead, and skills and margin erosion continue to be issues they worry about affecting overall performance.”