Firm Survey Shows Profitability Preserved Amid Flat Revenues
Despite flat revenues, CPA firms managed to maintain profitability during the past two years, according to the 2010 PCPS/TSCPA National Management of an Accounting Practice (MAP) Survey, a biennial survey conducted by the AICPA’s Private Companies Practice Section and the Texas Society of CPAs.
The survey results provide a comprehensive benchmarking tool to help inform CPA firm business decisions in areas such as billing rates, expenses, revenue, realization, service offerings, staffing, marketing and benefits.
Eighty percent of the more than 2,900 CPA firms surveyed reported a decline in revenue; no growth; or modest growth of between 1% and 9% between May 2008 and June 2010. Although firms reported fee pressure from clients, average net remaining per owner rose 11% to $273,140.
“Going forward, the challenge for CPA firms will be how to maintain or increase that profitability,” said James C. Metzler, AICPA vice president–Small Firm Interests. Firms will need to seek growth “from new lines of service, such as cloud computing, and getting closer to clients through deeper, higher-value consultation and advice,” Metzler said.
To see the survey results, visit aicpa.org/pcps.
To see a JofA video about the results, “Use the 2010 MAP Survey to Benchmark Your Firm,” click here.
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