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Accounting firm Econ. 101, including a sample income statement.

By Marc Rosenberg
The Rosenberg Practice Management Library

All businesses have economic structures unique to their industries:

  • Grocery stores are high volume, low-profit margin.
  • Real estate ventures use accelerated depreciation and other tax angles to generate cash flow and healthy ROIs.
  • Professional sports teams focus on increasing the value of the franchise so it can eventually be sold for a gigantic profit.

MORE: A Crash Course in the Business of Public Accounting | How to Get Promoted to Manager | How to Create a Path to Partner | Making Partner: What Managers Need to Know | The 17 Rules for Making Partner at a CPA Firm | Who Shouldn’t Be a Partner? | Nine Reasons People Are Promoted to Partner | How to Make Partner?
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The typical CPA firm is a low-volume, high-priced business, with a relatively high-profit margin (generally 30-45 percent of revenue).