corporate form of governance is seeing more acceptance.
by marc rosenberg
the rosenberg map survey
editor’s note: every year, the rosenberg map survey asks the industry’s top consultants to share their observations from cpa firms across the country. how do you think the next 12 months will unfold? also, how would you assess the last 12 months?
- private equity shows signs of trickling down to sizeable local firms (say $15-30 million firms).
- the aging of baby boomers – ages 57-75 – continues but at some time in the next five years or so, their tremendous wave of retirements will abate somewhat and there may be fewer sellers.
more: three ways firms can succeed in 2024 | firms must choose best workplace model | outsourcing, remote work will help firms grow capacity, revenue | private equity leading to corporate-style cpa firms | five ways staff shortages are changing firms forever | partner incomes surge 11.4%
exclusively for pro members. log in here or 2022世界杯足球排名 today.
- artificial intelligence has ramped up its awareness in the cpa firm market. though many have warned of the negative impact of ai, its upward trend is relentless and knows no bounds.
- we’ve seen a handful of firms consider changing from the flawed partnership structure to the more businesslike corporate form of governance. it’s about time!
- most agree that remote work is here to stay but at the same time, many are concluding that firms are less productive when remote work levels are high. it’s also harmful to job satisfaction because people lack the person-to-person contact they crave. the hybrid model is showing signs of going from 2-3 days in the office to 3-4.
as yogi berra said (or didn’t say), it’s déjà vu all over again. with obvious exceptions of major external disruptions such as a recession or covid-19, not much changes from year to year. this is much more true for typical local firms (say firms with annual revenue below $15-20 million) than for top 100 firms (#100 has annual revenue of nearly $50 million).
- booming demand for cpa services.
- continually shrinking labor market.
- when the first two issues are combined, it produces a situation where partner earnings are skyrocketing but so is partners’ frustration and anxiety levels because they can’t find staff.
- firms continued their movement from nearly 100 percent remote in 2020 and a good part of 2021 to hybrid arrangements.
- the private equity trend started to move from the novelty phase to deeper penetration, though still a microscopic factor among mainstay local firms.
- mergers between cpa firms continued the frenzy that has characterized our profession for 10 or more years now. buyers continued their trend to be more selective in who they marry.
- to deal with the mini crisis of too much work and too little people to do the work, firms raised prices, terminated less profitable clients and gave huge raises and bonuses to their staff in the hope of inducing them to remain with their firms.