US accountancy firm stats show revenue and profit growth

US accountancy firm stats show revenue and profit growth

Revenue and profitability growth in on the rise for CPA firms, found a survey from the American Institute of CPA’s and its subsidiary CPA.com

REVENUE and profitability growth has been demonstrated by CPA firms, a survey from the American Institute of CPA’s and its subsidiary CPA.com has found.

Most CPA firms reported solid gains in revenue and profitability over the past fiscal year and are taking steps to make their practice management more innovative. Representatives from 1,537 CPA firms were asked, from May to July this year, details about their latest fiscal year financial results.

From 2014 to 2016, the average revenue growth rate rose from 4.9% (of larger firms) to 10.5% increase (with the lesser firm segments). Net profits, remaining per owner, showed that profitability grew by double digits for higher revenue firms, 11.2% to 13.3%.

The 2016 National Management of an Accounting Practice (MAP) Survey, conducted once every two years, was designed to examine CPA firm segments, from small practices with less than $200,000 (£163,000) in annual revenue to large firms with $10m or more, since key performance indicators often vary widely by firm size.

Mark Koziel, CPA executive vice president, said: “The survey shows that the business of public accounting is strong.”

The cost of employees continues to grow as a percentage of firm profits, with firms showing a strong preference for accounting graduates. Practice innovation is also on the rise with more firms, particularly small to midsize, shifting away from timesheets and experimenting with value or fixed pricing.

Share

Resources & Whitepapers

The importance of UX in accounts payable: Often overlooked, always essential
AP

The importance of UX in accounts payable: Often overlooked, always essentia...

1y Kloo

The importance of UX in accounts payable: Often ov...

Embracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...

View article
The power of customisation in accounting systems
Accounting Software

The power of customisation in accounting systems

1y Kloo

The power of customisation in accounting systems

Organisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...

View article
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

4y Accountancy Age

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
8 Key metrics to measure to optimise accounts payable efficiency
AP

8 Key metrics to measure to optimise accounts payable efficiency

1y Kloo

8 Key metrics to measure to optimise accounts paya...

Discover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...

View article