MAP Survey: Things are Looking Up for CPA Firms

Source: Journal of Accountancy

According to the 2012 National MAP survey, revenue growth and partner compensation among CPA firms are on the rise, and the accounting profession is "slowly but steadily regaining ground lost in the biggest economic earthquake since the Great Depression." Highlights of the survey -- conducted every two years by the AICPA's Private Companies Practice Section and the Texas Society of CPAs -- include the following:

• Nearly two-thirds (66 percent) of respondents reported year-over-year growth in client fees, up from 55 percent in the 2010 survey (but short of the 80 percent reported in 2008). The magnitude of growth followed a similar pattern.
• Overall partner compensation increased 10 percent from 2010 to 2012. It appears that many partners left their profits in their firms to help firms ride out the "economic storm" between 2008 and 2010 and then compensated for those cutbacks in the following years.
• Staff compensation declined in 2012 after experiencing significant gains in 2010 (possibly as part of a staff retention effort).
• Hourly billing continues to dominate, but fixed-fee arrangements are catching on, particularly among firms with annual revenue of $5 million to $10 million. Use of value pricing is up among firms of all sizes -- 56 percent of firms are using it, compared to 41 percent in 2010.

The article also reviews survey results regarding billing and utilization rates, the relative importance of various services, benefits offered by firms, and technology. In technology, the results reflect significant gains in use of client portals, social media, and paperless work environments. In addition, new survey questions indicate that almost 30 percent of firms use cloud-based software, 23 percent promote use of tablets and other mobile technology, and more than 60 percent deliver tax returns digitally.

For the complete article, read 2012 MAP Survey: Signs of recovery.

From Journal of Accountancy, December 2012, American Institute of Certified Public Accountants, http://www.journalofaccountancy.com/Issues/2012/Dec.