Accounting firms are reporting strong growth in revenue, along with continuing increases in staff compensation, including for entry-level accountants, according to a new survey from the American Institute of CPAs.
The AICPA's
Firms reported growth in revenue from audit and assurance as well as tax services. They also saw continuing growth in client accounting advisory revenue, as previous MAP surveys have indicated. After experiencing a surge in demand for accounting services during the pandemic, the 2024 growth results reflect continued interest in and value of the range of services accounting firms provide.
Net remaining per partner/owner climbed 11.9% from $225,725 in fiscal year 2022 to $252,663 in fiscal year 2024. This metric equates to net client fees minus expenses and before partner compensation is taken out, is what firms consider profit on a per-partner basis.
"CPA firms have been focusing on strategic growth opportunities by refining their client base and deepening relationships with existing clients," said Lisa Simpson, vice president of firm services at the AICPA, in a statement Wednesday. "This type of strategy is a key component of accounting firm business model transformation that allows CPAs to enhance their role as trusted advisors."
The survey also found that firms are increasing their compensation, including for new graduates, as they grapple with the talent shortage. Over a two-year period, the median salary for a new graduate with a bachelor's degree grew nearly 11% from the previous survey to $60,834, while median average salary for a new graduate with a master's degree rose nearly 17% to $67,750. The compensation level per equity partner increased 10.2% overall. Average compensation per position has increased across the board with the highest increases showing in associate through manager level.
The survey indicated a slow but steady increase in value and fixed pricing, with a decrease in traditional hourly billing.
Firms that responded to the survey are indicating interest in adopting artificial intelligence and automation, along with other technologies. A large majority of firms responding to the survey said they feel confident about adapting to AI and automation over the next three years. AI is being used in client communications, real-time dashboards and forecasting models, but most firms haven't yet allocated formal budgets for AI or developed structured training.
