Annual Survey of Accounting and Bookkeeping Services

The accounting and bookkeeping industry rebounded from the shock of scandals that resulted in the dissolution of a major professional accounting firm in 2002. Operating revenues increased 6.4% to $8.36 billion in 2003.

Corporate and personal tax services accounted for the majority of revenue growth, up $413 million to $2.1 billion in 2003. This represents 28% of industry operating revenues. However, traditional accounting and auditing services remain the backbone of the profession, generating 56% of revenues in 2003. Consulting services maintained their share of revenues at 7.6%.

Approximately half of the industry's operating revenues were generated by firms located in Ontario, followed by Quebec at 19%, British Columbia at 12%, and Alberta at 11%. Revenues increased in Ontario (+7%), Quebec (+9%) and Alberta (+13%), but were down slightly in British Columbia (-1%).

The accounting industry relies heavily on human capital. In 2003, approximately 68,000 workers were employed by firms in the industry. Salaries remained the single largest expense item of these firms, comprising 54% of total industry operating expenses. Spending on salaries and wages increased to $3.2 billion in 2003, up 6% from the previous year. These figures do not include the contribution of approximately 11,000 partners and working proprietors.

The industry's pre-tax operating profit margin was unchanged from 2002 (29%).

Market share of the 20 largest firms represented 48% of operating revenues in 2003, unchanged from the previous year.

Available on CANSIM: table 360-0007.

Definitions, data sources and methods: survey number 4716.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Nissa Kenney (613-951-5250; fax: 613-951-6696; nissa.kenney@statcan.gc.ca), Service Industries Division.