CPA firms seeing greater revenue from mergers

Accounting firms are seeing slightly more growth in the amount of income per partner, along with a bigger share of revenue that can be attributed to M&A, according to the latest edition of the annual Rosenberg Survey.

The survey, which is now in its 20th year, reports on the results of 360 accounting firms, most of them ranging between $2 million and $20 million in annual fees. The report tallies nearly 100 CPA firm metrics.

This year, the survey found that income per partner increased to $441,000, or 3 percent higher than last year. However, this year ended a trend where the growth in income per partner was catching up to firms’ net fee growth. “We hope to see a time where the IPP growth is at least the same as the net fee growth as it was in 2006,” said the survey.

Mergers are still having a big impact on revenue growth at CPA firms. This year, 39 percent of the firms’ revenue increase came from mergers, a significant uptick from 26 percent last year.

The Growth Partnership, an advisory firm based in St. Louis, collects and compiles the data for the survey, which costs $500. To order a copy, visit www.rosenbergsurvey.com.

CPA firm revenue share from mergers

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M&A Practice structure Partnerships Fee-based compensation Partner compensation
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