CPA Firms Grow Despite Economic Downturn
Even when faced with the economic uncertainty of 2008, CPA firms weathered the changes pretty well, according to CPA Firm Statistical Analysis Reference Handbook 2009, a publication by the Institute of Management and Administration.
The Accounting Office Management & Administration Report on which the handbook is based found that owner compensation rose slightly over the prior year’s averages. Compensation averaged $347,071 for the highest paid partner groups (pay only, not counting any bonuses, perks or benefits). Owners in the middle range averaged $204,292, and the lowest paid owners averaged $153,918. Net income per partner averaged $283,364, up from $280,009 in the previous survey.
Despite the economic downturn, more than half the firms surveyed had actually raised rates during the fiscal year and are also still investing in technology and marketing, spending an average of 5.2% and 2.7% of revenues on those initiatives, respectively.
Source: IOMA, www.ioma.com/cpa.