National MAP: Mergers Down. Partner Pay Up
Partner comp averages $186,000, up 16%
New York (from the AICPA) – CPA firms are experiencing strong growth with 76 percent reporting an increase in firm size in the last year, according to the just-released National Management of an Accounting Practice Survey conducted by the Private Companies Practice Section of the AICPA and the Texas Society of CPAs.The 2006 National MAP Survey found that the average partner compensation jumped 16 percent to $185,892 and the average billing rate for partners was up 5 percent to $168 since 2004. Merger activity, on the other hand, decreased from 15.2 percent to only 7.8 percent of firms growing by merger in 2006.
Nearly 2000 CPA firms from across the country participated in the comprehensive survey to provide national averages and meaningful benchmark data in areas such as billing rates, expenses, revenue, realization, service offerings, staffing, marketing and benefits. As the data is delineated by region and firm size, CPAs can compare their own financial results and practice management policies with firms much like their own.
Despite strong growth, the 2006 National MAP Survey confirms that succession planning remains a stumbling block for many firms facing the imminent retirement of a generation of Baby Boomers. The survey found that only 24.1 percent of firms have a succession plan and only 7.2 percent of firms have partner-in-training programs.
Compounding this looming crisis, firms spent only 0.8 percent of their expenses on CPE which is less than what they spent on promotion and marketing.
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