Trends Among the Top 100 Firms

Source: Inside Public Accounting

IPA’s annual survey of the top 100 firms reports:

• Revenue growth has declined slightly, from about 16+ percent in 2005-06 to 15 percent in 2007.
• Net income as a percent of revenue is relatively steady at 32.9 percent.
• Net income per partner has been climbing steadily, from $407,700 in 2005 to $495,200 in 2007.
• Net fees per charged hour have steadily increased, from $144 in 2005 to $161 in 2007.
• Leverage has remained steady at 6.1 to 1.
• Percentage of partner time billed has been relatively steady at 47 percent.
• Marketing costs as a percentage of net revenue have been steady at 2.2 percent.
• Net revenue per professional has steadily increased, from approximately $203,000 in 2005 to $217,500 in 2007.
• Net revenue per staff member has steadily increased, from approximately $156,000 in 2005 to $172,000 in 2007.
• Average pay per professional has increased, from $68,000 in 2005 to $74,000 in 2007.
• Percentage of work has remained steady at 44 percent A&A, 31 percent tax, and 25 percent other.

The following chart depicts the results:

From Inside Public Accounting, August 2007, p. 10. The Platt Consulting Group (www.plattgroupllc.com). Subscription $369 per year; back issues—nonsubscribers $50. 317-733-1920.