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Mark Koziel, AICPACPA firms had modest increases in revenue last year, accompanied by a stable or brightening profit picture, according to findings of the National Management of an Accounting Practice Survey. Increases were recorded for 2013 in every firm segment, form those with less than $200,000 in annual revenue to those with more than $10 million.

However, the bi-annual survey, conducted by the American Institute of CPAs' Private Companies Practice Section and Texas Society of CPAs found fee growth has not returned to pre-recession levels. Conducted May through August, the survey sought responses from almost 1,750 firms.

The survey reported a pullback in the category net remaining for owner—revenue minus expenses before partner-related compensation. That contrasted with an increase in the category in 2012. The sponsors concluded owners may be building equity to give themselves options.

"We're seeing many firms take conservative steps to ensure the sustainability of their organizations," said Mark Koziel, CPA, CGMA, the AICPA's vice president of firm services and global alliances." He said succession planning, budgeting for new hires, merger strategy and hedging against uncertainty all play a factor in the decision not to take out greater profit.

Professional salaries grew by 6.9 percent from the 2012 for the smallest practice and represent slightly more than 16 percent of net client fees. Organizations with revenue above $200,t000 to $750,000 annual had smaller increases and the largest firms reported no growth in professional salary expense.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Thursday, 06 November 2014
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