Most Firms Plan to Increase Billing Rates

Source: Accounting Office Management & Administration Report

According to AOMAR's CPA Firm Practice Management Survey 2010, nearly 53 percent of CPA firms plan to increase their billing rates next year by one to five percent Another 11 percent plan to increase their rates between six and 10 percent. And 4.4 percent of firms plan a rate hike of more than 10 percent.

The groups most likely to increase their rates by more than 10 percent include firms with gross fees between $1 million and $1.99 million, firms with gross fees under $500,000, firms with 16 to 25 people, and firms with one to five people.

Current billing rates average $228 for CPA owners, $192 for non-CPA owners, and $185 for non-equity owners.

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From Accounting Office Management & Administration Report, Institute of Management and Administration, Inc., Newark, NJ, [email protected], November 2009, p. 1, “Billing Rates Will Still Rise, CPA Firms Say.”