CPA Firms Grow Despite Economic Downturn

March 1, 2009

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.

PROFESSIONAL DEVELOPMENT: EARLY CAREER

Making manager: The key to accelerating your career

Being promoted to manager is a key development in a young public accountant’s career. Here’s what CPAs need to learn to land that promotion.

PROFESSIONAL DEVELOPMENT: MIDDLE CAREER

Motivation and preparation can pave the path to CFO

CPAs in business and industry face intense competition to land a coveted CFO job. Learn how to best prepare yourself for the role.

PROFESSIONAL DEVELOPMENT: LATE CAREER

Second act: Consulting

CPAs are using experience to carve out late-career niches. Learn how to successfully make a late-career transition to consulting, from CPAs who have done it.