the authors of the rosenberg map survey have some thoughts.
by 卡塔尔世界杯常规比赛时间 research
rosenberg survey of cpa firm statistics
one thing cpa firms can’t gripe about is revenue. yeah, the hours seem to be getting longer, the struggle harder, the rules more complex, and the technology continuously antiquated. but the money: it’s good.
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the 2024 rosenberg survey of cpa firm statistics—the 26th annual edition of the premier report on the state of the industry—confirms that in 2023, virtually all indicators of cpa firms’ health were good. and, generally speaking, the bigger the firm, the better they’re doing.
the survey says size matters:
- average revenue growth for all firms billing over $2 million was 10.7 percent over 2022.
- revenue for firms over $20 million grew the most – 12.5 percent.
- revenue for the smallest firms – $2-5 million – grew the least, a respectable 9.1 percent.
- on average, growth was the same as in 2022 but much better than the previous three years.
despite billable hours dropping by a substantial smidge – 2.5 percent for equity partners, 5.4 percent for staff – fees rose respectably. net fees per equity partner shot up by 10.2 percent to an average of $2,127,436.
those net partner fees varied by the size of the firm.
- partners in the $20 million and up range raked in an average of $2,817,893.
- those in the $10-20 million firms used slightly smaller rakes to gather $2,422,257.
- in the $5-10 million firms, partner fees averaged $1,839,600.
- at $2-5 million firms, equity partners made only a little bit more than in 2022, increasing to $1,396,021.
charles hylan, managing director of the growth partnership – which conducted the survey, crunched the numbers and produced the report – believes that the double-digit growth “could be higher if we weren’t in a people shortage. firms purposefully manage growth because they simply don’t have the staff to get the work out the door.”
allan koltin of koltin consulting says 2023 was “the fifth and final year of … the ‘golden age of public accounting.’” he compared the age to a gloriously optimistic disney movie about a fantasy world where everything works out just fine.
- free money from the paycheck protection program
- lucrative fee opportunities in the employee retention tax credit
- the ability to continuously raise rates
- the chance to cull low-margin clients
- the vacancies of the “great resignation”
- the transition to remote and hybrid work
marc rosenberg of rosenberg associates used to say that the golden age was 2003-2007, given the period’s unprecedented increases in revenues and profits. but he now says “… many of us feel these current years of prosperity have eclipsed the golden age. paradoxically, firms are still frustrated by too much business and with too few staff.”
matt rampe, also with rosenberg associates, sees the dark lining around the golden cloud. “in the last year, getting work was easy,” he writes in the report, “but getting it done was hard.” it was a struggle, but firms managed to grow, increasing their capacity through outsourcing work and cutting back on the client list.
given the general growth in revenue and the strategic steps that have made it possible, it’s no surprise that private equity is showing so much interest in accounting firms. but is pe mistaking the past for the future? as koltin notes, “i don’t think we will ever see a period of growth and profit like we have seen over the past five years.”