In the war for talent, “local” CPA firms face new threats from distant, bigger rivals – worldwide
By Rick Telberg
CPA Trendlines
The traditional business model of the so-called “local” CPA firm is being challenged anew by the emergence of a single, unified coast-to-coast talent market that’s undermining the pay differences between big-city and small-town firms.
That’s bad news for traditional firms trying to control staffing costs. But great news for a new generation of top talent.
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The study shows that salaries are increasing faster than inflation throughout the American market, and they aren’t always limited by the local cost of living. The average salary for a tax professional in New York City, for example, has risen to $77,660 this year, up from $75,400 last year. Importantly, the numbers ($77,660 this year, up from $75,400) are the same in Des Moines, Iowa, where the cost of living is substantially lower – along with the pricing sensitivity of Des Moines clients. This augurs new pressures on billing rates and profitability across the nation.
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