AAT research shows UK bookkeeping businesses up 110% since 2010

Accountants and bookkeepers have enjoyed a significant growth period over the past decade, according to new research commissioned by AAT.

As we approach the end of the 2010s, AAT’s research, conducted with Nottingham Business School and Warwick Economics & Development Ltd, revealed:

• Since 2010 the number of bookkeeping businesses has increased by 110% to 6,525 in 2018. The number of businesses in the broader accounting sector also increased by 32% to 43,570 in 2018.
• The largest proportion of bookkeepers in England is in the North West (28%), followed by 15% in London and 15% in the East of England. The locational concentration patterns have also changed over time – 29% of employment in bookkeeping was in London back in 2009.
• Bookkeepers account for 31% of accounting professionals – compared to just 18% in 2010. By 2017, there were 123,000 accounting professionals classified as bookkeepers in the UK.
• The overall number of accountants in the UK increased from 272,000 to 395,000 between 2010 and 2017 – representing a 45% increase within this eight year period. The number of self-employed accountants has also grown by 8.9% in this period.

Bookkeeping employment in England by region (as of 2017)

 

Mark Farrar, Chief Executive, AAT, said:

The accountancy sector has grown substantially over the past decade – in particular in bookkeeping, with 110% more businesses set up over this period. At AAT, we’ve seen the rise in popularity first hand, with almost 5,000 members achieving AAT Qualified Bookkeeper (AATQB) status since its launch in 2016.

“The rise underlines just how much demand there is for professional accounting and bookkeeping services. We’re also seeing the role of accountants evolve - far from technological advances acting to the detriment of the sector, it has enabled finance professionals to report on real-time information and advise clients on what these figures mean for the future. There can be little doubt that bookkeeping support will remain popular for the 2020s and beyond.”

I started a bookkeeping practice in the 2010s: Carole Alexander AATQB

“After starting a family, I ran a procurement department in the Home Office. I completed a part-time RSA bookkeeping course, and soon realised I could do bookkeeping for my own clients instead of working for somebody else. I did the AAT NVQ4 in 2000 while building my business, then formed a limited company with my business partner Lorna Bennett in 2012. Since then, we’ve helped lots of small businesses and start-ups, and even put full-time bookkeepers into some businesses we’ve helped grow. It’s so nice to see them fly.

“I try to meet all our clients quarterly, regardless of whether they’re VAT-registered, to go through management accounts and discuss where their business is going. Sometimes people will drop in for a meeting without an appointment, usually when they have something new on the go and want some advice.”

Find out more about becoming a professional bookkeeper through AAT.