How Big The Accounting and Audit Industry India 2022
India is a developing country. While most of the other country’s GDP is becoming negative and declining, however, the Indian economy is growing rapidly. According to the data, it is because of the various schemes launched by the Government of India, there are a lot of MSMEs who started their own business and started contributing to our Indian Economy.
Moreover, after the pandemic, people know that the source of independent earnings is far more important, even if they work at large multinationals and corporate firms. In this article, you will know the accounting and audit industry in India.
According to the big 4 companies in India data, the medium and big firms are out-sourcing their accounting, legal, corporate finance, and taxation to other finance companies. The majority of Fortune Global 500 companies manage by the big 4 accounting firms Deloitte, PwC, EY- Ernst & Young, and KPMG. Let’s know the accounting and audit firm industry in India.
Accounting and Audit Industry India
India has 107 unicorns today, and moreover, 5,500+ companies are listed in the Indian stock market. The GDP of any country depends on the share market of the country. After promoting Digital India, Atal Innovation Mission, Make in India, and various other schemes by the Indian Government. More and more startups are building day by day.
Any big corporates and private limited companies spend 3.45% to 4.5% of their total profit on accountants. There are several works are involved to manage the account of any company. Let’s know one by one, on which areas a company spends its money to manage accounts.
Accounting Software and Technology
After the implementation of GST in India, a company will need powerful account software to manage and calculate its accounts. In the market, there are many companies that have developed great accounting software. If you are a small business or startup owner then you can use this software at a very affordable cost.
But, big companies spend a huge amount on account management software to manage their millions of customers, thousands of employees, and hundreds of services. The total Indian account management software industry is estimated to be around $10.68 billion and the market will grow to $20 billion in 2030.
The salary of an accountant professional in India who has more than 5 years of experience in the Accounts Management field is around 4 lakhs to 20 lakhs per annum depending on the company. Therefore, companies spend a huge amount on their accounting team. Also, it is a major expense on account management for any company in India.
In a company in India that has 2 to 20 employees, only 1 accountant can handle the accounts there easily. But larger companies that have more than 100 employees will need a bunch of separate accountant teams to manage their accounts. And managing a group or a team will always be a big task for any company. This is the biggest reason companies outsource their accounts to other highly reputable big 4 companies.
If you manage a large team then you have to give systematic training to your team. So that, your team will work efficiently and manage and grow your company. Also, it is a big job for a company to provide proper training to their team member who is fresher.
A Highly experienced specialist is needed in a company to train their team members for specific account management work in the company. Therefore, companies spend a huge amount on hiring a specialist.
There is a huge number of unemployed people in India, according to the report, this is due to the lack of proper study colleges in India. Colleges and Institutions that provide quality education charge a hefty amount. Therefore, many people in India cannot afford these college and institution fees, as a result of which unemployment is increasing rapidly in India.
After studying research papers, and news, and analyzing the big companies and account services providing firms in India, The estimated accounting and audit firm industry in India is about $28.78 Billion and the industry will grow up to $55.6 Billion in 2030.