UK accounting firms could unlock more than £463,000 in additional annual revenue from their existing client base without winning a single new client, according to a new study by Ravical. This follows tumultuous industry changes, including a series of layoffs from top firms Deloitte, KPMG and PwC, citing difficult market conditions and employee attrition.

“There’s a misconception that the market is shrinking. Our findings show 92% of businesses would be willing to pay more, if their accounting firm offered the additional support they need,” said Joris Van Der Gucht, Co-Founder and CEO of Ravical. “Accountants are sitting on a pool of opportunities to unlock commercial expansion and those that strategically engage with existing clients will prevail.”

The independent research found that the average annual spend on accounting services across UK businesses is approximately £19,700. Most clients sit in the £10,001 to £25,000 band, making this the primary segment for incremental revenue.

While businesses increasingly want broader strategic guidance from their accountants, many firms are failing to communicate the services they provide, leaving significant revenue on the table.

As a result, businesses are increasingly turning elsewhere for advice, including through the support of artificial intelligence. Seven in ten (70%) SMEs admit they have acted on financial, tax or business advice generated by an AI tool without first checking it with their accounting firm during the past year.

“Businesses aren't necessarily looking to replace their accountant with AI, but they want more value from the one they already trust,” continued Van Der Gucht. “The fact that 94% of businesses would consider expanding their relationship shows the fastest route to growth is already on their books. With the support of AI, accounting firms can now streamline workflows and focus on delivering more tailored services to clients.”

As compliance work becomes increasingly automated with the use of AI and businesses seek more strategic guidance, this research demonstrates that the existing client base is more of a growth lever than acquisition. Therefore, accounting firms that strengthen relationships with existing customers will be best positioned to continue to grow in the future.