The public accounting market - Spain

As of 2020, the global accounting services market has been experiencing a steady growth, with particular emphasis on the increasing demand for chartered accountants. Despite country-specific regulations such as GAAP in the US or the Plan Comptable Général in France, the global market for chartered accountancy firms mainly services companies within their own country borders. A significant demand driver for chartered accountants comes from SMEs (Pymes), with 55.7% of such businesses undergoing audits in 2020; 71.7% did so out of compulsion, while 28.3% acted voluntarily. Regulatory changes, the growth of digital tools, and the presence of French companies are also shaping the dynamics of the market. Notably, the Big Four accounting firms dominate the Spanish market, holding 60.34% of the total audit sales in Spain as of 2021.

Market Dynamics and Trends in the Spanish Accounting Sector

The Spanish accounting sector, though not officially recognized by the state, has seen remarkable growth in the presence of chartered accountants. With the adoption of international accounting standards like IFRS, the global market for accountancy services has expanded significantly, and Spain is no exception. The number of chartered accountants in the country saw a substantial increase of over 50% from 2016 to 2023. Despite the growth, the profession remains somewhat compartmentalized within national borders, with firms primarily servicing domestic companies. Nevertheless, the evolution of legislation is prompting businesses to seek out qualified professionals to ensure compliance and accuracy in their financial reporting. From a global perspective, accounting services have seen a steady rise in demand, moving from approximately $488 billion to well above $570 billion over several years. The anticipated compound annual growth rate is set to skyrocket over the coming years, potentially reaching a staggering value between $1200 billion and $1300 billion by the end of the decade. In Spain, the market has demonstrated resilience, recovering from a sales dip caused by the Covid-19 crisis to experience an impressive growth rate of over 13% between 2019 and 2021.

Notably, the audit sector within the country has prevailed, suggesting a robust future for the industry. When delving into the different clientele of chartered accountants, we find that large companies are frequently compelled to perform audits due to regulatory mandates, especially if they align with certain financial thresholds or conditions. In contrast, small and medium-sized enterprises (SMEs), or Pymes as they are referred to in Spain, represent a critical segment that often chooses to audit voluntarily. In 2020, close to 2 million SMEs underwent audits, whether due to obligation or choice. The primary draw for SMEs to engage in auditing services is to comply with legal mandates. However, many firms also recognize the value in demonstrating transparency to financial institutions or enhancinc their market perception through audited accounts. Regarding the French presence in Spain, it's particularly noteworthy in the corporate sector. Over 2,000 French entities are spread across Spain, contributing significantly to employment and the local economy. The economic distribution varies, with a significant French corporate presence in Madrid and Barcelona. Additionally, the French population had surged by almost 20% between 2017 and 2022, after a period of decline linked to political uncertainties in Catalonia.

Prominent Players in the Spanish Accounting and Auditing Landscape

The Spanish accounting and auditing market boasts a dynamic array of established and emerging players that cater to a diverse set of industries and clientele. Navigating through the market, one encounters a handful of companies that have carved out their niche and command considerable attention.

• Among the titans that dominate the sector, known colloquially as the Big Four, stand Deloitte, EY (Ernst & Young), KPMG, and PWC (PricewaterhouseCoopers). These multinational giants not only hold substantial market share in Spain but also worldwide. They're acclaimed not just for their auditing prowess but also for their extensive range of professional services, including advisory, taxation, and consulting, serving the top echelons of public and private enterprises.
• The landscape also features specialized firms like ETL Global, which extends its professional services through various cities in Spain. With a keen focus on localized expertise, ETL Global caters to a broad spectrum encompassing industries such as finance, legal, and tax advisory, making them a versatile choice for businesses.
• We also see Bové Montero y Asociados, a firm known for its tailored approach to auditing and consulting services, making significant strides in Madrid and Barcelona. They leverage local insights and industry expertise to offer nuanced services that resonate with regional business needs.
• Soreco, another notable firm, distinguishes itself through its international presence. With offices in strategic locations like Madrid, Milan, Lisbon, and Barcelona, they provide cross-border accounting expertise that appeals to businesses with a global footprint.
• Furthermore, the Spanish market is enriched by entities such as Michael Page, which specializes in recruitment and strategic human resource services, reflecting the inherent connectivity between financial expertise and talent acquisition.
• Other prominent names such as Welex and Brugueras & Garcia Bragado Abogados add to this diverse professional ecosystem.
• Welex, with a stronghold in Marbella, is a beacon for legal and financial advisory, while Brugueras & Garcia Bragado Abogados offers comprehensive legal services, reinforcing the importance of legal prowess in financial matters.
• For those seeking a French connection, there are firms like Llobet y Beirat Abogados and C. Torres A., which offer services that bridge the gap between the Spanish market and French-speaking clientele, highlighting the growing internationalization of the industry.

Inforamtion

• Number of pages : 35 pages
• Format : Digital and PDF versions
• Last update : 16/03/2023

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