If you liked 2007, you’re gonna love 2008
According to IOMA’s 2008 CPA Firm Statistical Analysis Reference Handbook, about one-quarter of CPA firms are expecting revenue growth of more than 10% this year, while 44% believe revenues will rise at least 5%.
“Despite the predictions about change in the U.S. economy, CPA firms are well-positioned to thrive because they have honed their management practices with an eye towards greater efficiency,” says Susan F. Sandler, the longtime editor of AOMAR and editor of the handbook.
In addition to critical management statistics, the annual handbook reveals major trends in CPA firm practice management. For instance, CPA firms are taking advantage of healthy growth to raise fees and exploring alternative billing and fees.
“CPA firms are stepping up and billing what their firms and their expertise are worth,” Sandler said. “As firms improve their management practices, they can afford to change fee structures. A related trend: firms are becoming more willing to ‘fire’ the clients that no longer fit their strategic model. This lets them invest their resources where they want to direct growth.”
Interestingly, only 12.4% of the firms surveyed felt that offering a higher starting salary was a successful hiring tactic. CPA firms reported that flex time, greater involvement of staff in firm operations, more CPE, more social activities, and training in marketing and leadership development were the best methods for improving staff retention.
