{"id":131626,"date":"2023-10-11t00:00:40","date_gmt":"2023-10-11t04:00:40","guid":{"rendered":"\/\/www.g005e.com\/?p=131626"},"modified":"2024-10-01t08:51:48","modified_gmt":"2024-10-01t12:51:48","slug":"u-s-accounting-firms-show-strong-growth-in-profit-and-revenue","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/10\/11\/u-s-accounting-firms-show-strong-growth-in-profit-and-revenue\/","title":{"rendered":"u.s. accounting firms show strong growth in profit and revenue"},"content":{"rendered":"

new\u00a0national management of an accounting practice (map) survey.<\/strong><\/p>\n

public accounting firms in the united states reported strong top-line and bottom-line growth in their latest fiscal year results, driven by high demand for their services.<\/p>\n

the 1,117 firms participating in the survey reported a fiscal year 2022 median growth rate of 9.1% in net revenue over the previous year, according to the\u00a02023 national management of an accounting practice (map) survey. that rate eclipses the 4.2% growth rate from two years ago, when firms were dealing with the impact of the pandemic.<\/p>\n

the survey \u2013 conducted every two years by the aicpa & cima\u2019s private companies practice section (pcps) and cpa.com, the aicpa\u2019s business and technology arm \u2013 is the profession\u2019s largest practice management benchmarking tool. results are pooled into seven different firm-size segments, since the operations and focus of small to midsize firms can vary widely from larger ones.<\/p>\n

the term \u201cnet remaining per partner\/owner,\u201d or net client fees minus expenses and before partner compensation is taken out, is what firms consider profit on a per-partner basis. that category climbed almost 9% from $207,506 in fiscal year 2020 to $225,725 in fiscal year 2022.<\/p>\n

select public accounting firm key performance indicators<\/b><\/p>\n

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\n\n\n\n\n\n\n\n\n\n\n
category (median value)<\/th>\nfy 2022<\/th>\nfy 2020<\/th>\n<\/tr>\n<\/thead>\n
net client fees (revenue)<\/td>\n$1,088,840<\/td>\n$876,614<\/td>\n<\/tr>\n
previous year net client fees<\/td>\n$993,953<\/td>\n$867,000<\/td>\n<\/tr>\n
change year over year<\/td>\n9.1%<\/td>\n4.2%<\/td>\n<\/tr>\n
net client fees per partner<\/td>\n$683,470<\/td>\n$556,654<\/td>\n<\/tr>\n
net client fees per full-time professional<\/td>\n$189,695<\/td>\n$164,000<\/td>\n<\/tr>\n
net remaining per partner (profit)<\/td>\n$225,725<\/td>\n$207,506<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

 <\/p>\n

\u201cour data shows accounting practices taking steps to improve entry-level pay and firm culture, with some firms, for example, reducing chargeable billing hours for their staffs,\u201d said lisa simpson, aicpa & cima\u2019s vice president of firm services. \u201cwe\u2019re also seeing strong revenue growth in service areas beyond traditional tax and audit areas, such as client advisory services (cas) and business valuation. a sharper focus on business model transformation continues to make the profession more attractive as a career. the pcps section is developing a number of resources to keep that momentum going, so firms can focus on creating cultures that attract, retain and develop talent, provide even more value to clients, and ultimately drive the success of the firm.\u201d<\/p>\n

other key findings of the survey:<\/p>\n