2006 Performance Benchmarks for CPA Firms

AOMAR's 2006 CPA Firm Practice Management Survey received responses from more than 90 firms. Gross revenues in fiscal 2005 increased by 8.4 percent over the prior year, and chargeable hours increased 3.5 percent.

Average partner income was $272,000.

Firms were 55 percent chargeable.

Realization was 92 percent.

Multipliers averaged 3.0 for supervisors/managers and 3.2 for juniors/seniors.

Leverage averaged 6.1

Average receivables outstanding: 56 days.

Employee compensation was 31 percent of net fees.

Payments to retired owners averaged 2 percent of gross fees.

This is just a small sampling of the results. Complete charts are available in the complete article, which has been reproduced with permission from IOMA and can be seen by clicking here.

From Accounting Office Management & Administration Report, January 2006, p. 1 For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $349. 212-244-0360, [email protected].