2024 edition topline findings<\/strong><\/h2>\nthe 2024 rosenberg survey<\/strong>, based on data from 2023, provides a comprehensive analysis of cpa firm statistics, focusing on key financial and operational metrics across firms of various sizes.<\/p>\nhere are some of the major findings:<\/p>\n
revenue and profitability<\/strong><\/p>\n\nrevenue growth<\/strong>: firms with over $20 million in net fees saw a 12.5% growth (including mergers). smaller firms’ growth rate ranged from 3.1% to 10.6%.<\/li>\nprofitability<\/strong>: income per equity partner ranged from $298,345 for the smallest firms (under $2m in net fees) to $724,260 for firms with more than $20m in fees.<\/li>\nfee growth projections<\/strong>: firms expected fee growth of around 8.5% to 9.7% in 2024.<\/li>\n<\/ul>\nstaffing and outsourcing<\/strong><\/p>\n\nstaff turnover<\/strong>: firms experienced an overall turnover of around 12.9%, with a significant proportion of staff voluntarily leaving. outsourcing and offshoring have grown as key solutions to capacity challenges, with over 66% of larger firms increasing outsourcing in the next 12 months.<\/li>\noffshoring<\/strong>: more than half of firms over $10 million offshore staff, with a growing trend expected for 2024.<\/li>\n<\/ul>\nbilling rates and utilization<\/strong><\/p>\n\nbilling rates<\/strong>: partner billing rates averaged between $326 and $447 per hour, depending on firm size.<\/li>\nutilization<\/strong>: utilization percentages for professional staff ranged from 53.2% to 56.9%.<\/li>\n<\/ul>\nstrategic insights<\/strong><\/p>\n\nprivate equity influence<\/strong>: private equity investments are growing in the cpa profession, influencing firm valuation and market consolidation.<\/li>\ntechnology and ai<\/strong>: firms are increasingly adopting ai and technology to optimize operations, with ai becoming more integrated into accounting tasks like tax research and advisory services.<\/li>\n<\/ul>\nkey trends and concerns<\/strong><\/p>\n\ntalent shortages<\/strong>: firms face severe staffing challenges, with recruitment and retention being top concerns. the accounting pipeline is struggling, and there’s a trend of professionals leaving the field altogether.<\/li>\nprivate equity<\/strong>: private equity investment is reshaping the landscape, especially among the larger firms.<\/li>\nai and automation<\/strong>: the adoption of ai tools is gaining momentum, with firms beginning to implement generative ai solutions for increased efficiency.<\/li>\n<\/ul>\n\n
\n
why the rosenberg survey?<\/h3>\n\nresults are reviewed for accuracy and validity by two cpas.<\/li>\n provides statistics not seen in other surveys.<\/li>\n 82% of participants in the 2024 survey also participated in the 2023 survey \u2013 allowing for valid year-to-year comparisons.<\/li>\n we survey a robust pool of participants\u2014293 firms participated in 2024.<\/li>\n<\/ul>\n<\/div>\n \nreviewed and approved<\/h3>\n\n\u201can incredible, comprehensive collection of useful information.\u201d \u2013 timothy i. michel, cpa, principal, michel consulting group llc<\/li>\n \u201can insightful, hard-hitting analysis.\u201d \u2013 larry autrey, whitley penn, ft. worth, tx<\/li>\n \u201cthe quality of information is excellent! great job!\u201d \u2013 allan koltin, ceo, koltin consulting group<\/li>\n<\/ul>\n \nthe expert panel:<\/strong> (clockwise from top left) koltin, grissom, putney, loerzel, wilson, rampe, kepczyk, kuesel, steffen<\/figcaption><\/figure>\nanalysis and commentary by leading experts<\/strong><\/h2>\n\nallan koltin, koltin consulting<\/strong>:\n\n“the next 12 months will start with a handful of firms breaking out of the pack and substantially raising starting salaries for new accountants in a way never seen before… the firms that are ‘uber’ profitable will have an easier time ‘funding’ this change than their peers.”<\/li>\n \u201cthis year is the fifth and final year of what i have referred to as the ‘golden age of public accounting.’\u201d<\/li>\n \u201cfirms that have historically managed firm success by measuring the annual increase in average equity partner compensation will need to learn that we also need to measure the investment we are making in building a sustainable and ‘built-to-last’ firm.\u201d<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\njennifer wilson, convergencecoaching<\/strong>:\n\n“significant talent shortages and a pipeline crisis, record growth and profits for many firms, an increasingly soft economy as the year has progressed with uncertainty around the election, and the ‘run’ on cpa firms by acquirers and private equity investors have all created a never-before-seen landscape in public accounting.”<\/li>\n “firm leaders who are committed to remain independent have been making annual investments in talent and technology, building their bench, and retiring their boomers in an orderly fashion.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\nroman kepczyk, rightworks<\/strong>:\n\n“the big trend will be that we will continue to see a profusion of new ai-assisted applications coming at firms from all directions, at an increasingly untenable pace… my advice is to research peer success, pilot small and learn fast (or at least fail fast and move on).”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\nterry putney, whitman transition advisors<\/strong>:\n\n“private equity firms… continue to dominate the marketplace for m&a… it\u2019s fair to characterize the current market as a feeding frenzy within pe.”<\/li>\n “lack of labor resources continues to be the no. 1 issue facing firms. many firms seeking a sale or upstream merger often do so to combine with firms better equipped to acquire talent in addition to financial considerations.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\ntamera loerzel, convergencecoaching<\/strong>:\n\n“firms have made strides in solving the capacity challenge by hiring non-cpas or client service coordinators to manage the client workflow and communications… however, there is more to go.”<\/li>\n “partners share that they are burnt, too, and don\u2019t have the time to work on practice growth or people developing, with some even taking early retirement so they don\u2019t have to continue on the path they are on.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\ncarrie steffen, the whetstone group<\/strong>:\n\n“firms have begun to take the necessary steps to change what they can and be part of the solution… it\u2019s encouraging to see concrete steps being implemented.”<\/li>\n “i worry particularly for the folks who are early-ish in their career not having access to the soft skills, which are critical to their career satisfaction and success.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\nkristen rampe, rosenberg associates<\/strong>:\n\n“there has been a slight easing of the staffing crisis, though it is far from resolved. some firms say they now have the number of people they need or can find talent (in some cases filled by offshore resources).”<\/li>\n “the long-term nature of investing in people development, or lack thereof in some instances, is coming back to haunt some firms and adding fuel to the m&a scene.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\nangie grissom, the rainmaker companies<\/strong>:\n\n“over the past 12 months, key trends have emerged in the accounting industry, due to multiple factors: technological advancements, continued changes in workforce dynamics, ever-changing regulatory landscapes, and firm combinations.”<\/li>\n “we are also seeing a greater focus on the power of collaboration within national and global firms as these organizations are taking note of the need for a connected workforce, constructive collaboration, and the ability to refer work across the organization regardless of industry, service, or location.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\nart kuesel, kuesel consulting<\/strong>:\n\n“growth continued in both the top-line and bottom-line categories while firms did the best they could to sustain and grow capacity. it was the first time that firms reconciled the need to offshore and outsource to support growth.”<\/li>\n “many leaders were exploring the different models and solutions offered [by private equity] and how (if) they could be a match to the technology, succession, and staffing challenges faced by these firms.”<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n \n2024 edition sample pages<\/strong><\/h2>\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
<\/p>\n
\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
\n <\/p>\n
<\/p>\n
\nhigh-impact data and insight<\/strong><\/h2>\nthe rosenberg survey provides key data and insights that can significantly impact your practice.<\/strong><\/p>\nwith this report, accounting firms can take actionable steps to improve profitability, enhance client offerings, and build a robust and competitive business model for long-term success<\/p>\n
\ninformed decision-making<\/strong>: the report offers a detailed analysis of profitability, fee growth, partner income, and billing rates, empowering firms to benchmark their performance against peers and identify areas of improvement.<\/span><\/li>\nstrategic planning and growth<\/strong>: insights into fee growth, staff utilization, and leverage allow firms to develop strategic plans that align with market trends and set realistic revenue growth targets. elite firms’ analysis can serve as a model for other firms aiming to achieve higher profitability and efficiency.<\/li>\ntalent and compensation management<\/strong>: the report illuminates the staff-to-partner ratio, professional turnover, and compensation trends. this information helps firms assess their staffing structures, address talent shortages, and implement competitive pay structures, which are vital for attracting and retaining skilled professionals.<\/li>\noperational efficiency and outsourcing<\/strong>: by examining trends in outsourcing and offshoring, firms can explore how they might optimize their workflow, manage capacity, and enhance operational efficiency to deal with labor shortages.<\/li>\nservice diversification<\/strong>: the report provides a breakdown of services like assurance, tax, and advisory work, showing trends and growth potential. firms can use this data to diversify their offerings, such as considering financial advisory services, which have been linked to increased profitability.<\/li>\nfuture-proofing the business<\/strong>: the report includes forward-looking projections on fee growth and strategic areas such as technology adoption (like ai and cybersecurity) and changing partner roles, which help firms stay ahead of industry changes and maintain sustainable growth.<\/li>\n<\/ol>\n \nthe 2024 rosenberg survey: top ten list<\/span><\/strong><\/h2>\nhere are the top ten benchmarks revealed in the report that are critical for accounting firms:<\/p>\n
\nincome per equity partner (ipp)<\/strong>: this measures profitability across different firm sizes. the average ipp for firms with over $20m in net fees is $724,260. smaller firms (under $2m) have an average ipp of $298,345.<\/li>\nfee growth (including and excluding mergers)<\/strong>: firms over $20m experienced fee growth of 12.5% in 2023, while smaller firms under $2m saw only 3.1% growth. excluding mergers, the growth rate for large firms was 11.4%.<\/li>\nprojected fee growth for 2024<\/strong>: the report projects a continued upward trend in fee growth across all firm sizes, with firms over $20m expecting a 9.7% increase, indicating sustained revenue opportunities.<\/li>\nprofessional staff to equity partner ratio<\/strong>: leverage is a key profitability driver. larger firms have a staff-to-partner ratio of 9.2, while smaller firms have a ratio of 3.7, indicating that larger firms utilize more professional staff per partner.<\/li>\nbilling rates by market size and role<\/strong>: the average billing rate for equity partners varies by size, with rates as high as $447 in markets with populations over 2m, compared to $356 in smaller markets.<\/li>\nprofessional staff turnover<\/strong>: turnover rates across firm sizes remain a key concern, with an average turnover rate of around 12.9% for firms over $20m, indicating challenges in staff retention across the industry.<\/li>\nrealization rates<\/strong>: realization rates, which measure the percentage of billed fees collected, hover around 86.8% for the largest firms and increase to 93% for firms under $2m, showcasing efficiency in billing practices.<\/li>\nutilization rates<\/strong>: utilization, which reflects chargeable hours as a percentage of total work hours, averages between 53.2% for firms over $20m and 56.9% for smaller firms, reflecting staff efficiency.<\/li>\nbilling rates correlation to profitability<\/strong>: firms with higher billing rates see higher income per partner (ipp). the report shows that firms with partner billing rates in the highest 25% have an average ipp of $807,000, compared to $441,000 for those in the lowest 25%.<\/li>\noutsourcing and offshoring trends<\/strong>: many firms utilize offshore staff or outsource tax returns, with over 50% of firms over $20m doing so. of those, more than 66% plan to increase their offshoring and outsourcing in the next year.<\/li>\n<\/ol>\n \n2025 outlook: the top six trends<\/strong><\/h2>\n\nstaffing and talent management issues<\/strong>: firms are expected to face deepening talent shortages, requiring a focus on new staffing models, increased compensation, and enhanced development opportunities to attract and retain the next generation of accountants.<\/li>\nenhanced use of outsourcing and offshoring<\/strong>: using offshore labor pools and outsourcing is anticipated to expand further as firms seek to overcome capacity constraints and staffing shortages. technology advancements are expected to play a greater role in facilitating these changes.<\/li>\nstrategic growth and mergers & acquisitions (m&a)<\/strong>: m&a activity, particularly influenced by private equity, is projected to accelerate, with more firms considering mergers to improve their competitive positioning and access new markets. firms are also likely to re-evaluate their strategies around growth, client selection, and service offerings to adapt to market conditions.<\/li>\nincreased investment in technology and innovation<\/strong>: the pace of ai integration will fundamentally change workflows, service delivery, and client interactions. firms that invest in technology will gain a competitive edge, especially as ai enables more advisory-focused services and reduces manual compliance work.<\/li>\nrising importance of strategic planning<\/strong>: the need for formalized strategic and marketing plans is emphasized, as firms that engage in such planning show higher income per partner and better positioning for sustainable growth. firms need to be proactive and not complacent, ensuring alignment of leadership, technology, and staffing with long-term business goals.<\/li>\nevolving compensation models and partner buyouts<\/strong>: the trend of lowering partner buy-ins and implementing more competitive compensation structures is expected to continue as firms compete for talent and plan for partner succession.<\/li>\n<\/ol>\n \n <\/p>\n","protected":false},"excerpt":{"rendered":"
national study of cpa firm statistics<\/strong><\/p>\nthe leading report on practice management benchmarks, with guidance for 2025 strategic planning.<\/strong><\/p>\n\u201cthe<\/span>\u00a0 barometer for cpa firm practice management.\u201d\u00a0\u2013 accountingtoday<\/em><\/p>\n","protected":false},"featured_media":133272,"template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":""},"product_cat":[2859,2844,2837,2833,2838,2841,2839,2840,3000,2842,2873],"product_tag":[],"class_list":{"0":"post-54807","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-digital-option","7":"product_cat-digital-product","8":"product_cat-growth-profitability","9":"product_cat-leadership-strategy","10":"product_cat-management-hr","11":"product_cat-marc-rosenberg","12":"product_cat-mergers-succession","13":"product_cat-recommended","14":"product_cat-research-surveys","15":"product_cat-tech-operations","16":"product_cat-the-growth-partnership","17":"member-discount","18":"discount-restricted","20":"first","21":"instock","22":"virtual","23":"taxable","24":"purchasable","25":"product-type-simple"},"acf":[],"yoast_head":"\nthe 2024 rosenberg map survey | 26th annual edition - 卡塔尔世界杯常规比赛时间<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n