With greater regulation in the accounting industry and a higher number of services of accounting firms being used by companies, the accounting industry is seeing a higher growth rate. The CCH’s Public Accounting Report, a biweekly newsletter for accounting professionals, released its findings and its Top 100 list on Aug. 31. According to the report, the majority of the accounting companies reported a growth rate of 16.5% compared to 9.1% in 2005. The rate is the highest for these companies since 2000.
Sarbanes Oxley led to the demise of one public accounting firm, but the survivors are now reaping the benefits of higher regulations. Changes in the accounting rules, recent one being change in recording of stock options as an expense, companies relying on public accounting firms for not just audit, but also other consultancy services has brought about a higher growth rate for accounting firms.