Revenue at accounting firms increased 3.8 percent in 2011, a significant improvement from the 1.7 percent increase in 2010, according to Rosenberg Associates’ annual MAP survey.
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When the impact of mergers is removed, the growth rate was only 2.7 percent. Revenues were up for firms in all size ranges, though firms with annual fees in excess of $20 million experienced a higher growth rate of 6.5 percent than smaller firms.
Profits, as measured by income per partner, averaged $366,000 compared to $360,000 in 2010. Firms continued to hold expenses tight last year. Coupled with the improved growth rate, equity partner income improved. These tactics enabled firms to enjoy a modest improvement in profits despite the continuance of the recession.
Projections for 2012 indicate an improvement over 2011. Overall, firms are projecting a 4.0 percent growth rate.
The Rosenberg MAP survey, now in its 14th year, reports on the results of 396 firms, most of which range from $2–20 million in annual fees. Nearly 100 CPA firm metrics are measured.
“We are passionate about our commitment to making our survey the most accurate and authoritative national survey of CPA firm statistics in the profession,” said management consultant Marc Rosenberg in a statement. “Every year, 30 to 40 percent of the data we receive contains gross errors. Our survey team of three CPAs reviews the data and gets revisions where necessary. We simply will not include data in our survey that doesn’t look right.”
To order a copy of the survey, visit www.rosenbergsurvey.com.