Practice Management Gains Bring CPA Firms Revenue Growth, Higher Billing Rates and Human Resources Advances

Market Wire, February, 2008

2007 was another very good year for CPA firms, and 2008 will be just as healthy, according to data from "2008 CPA Firm Statistical Analysis Reference Handbook," a publication of IOMA, Inc. One quarter of CPA firms are expecting revenue growth of more than 10% this year, while 44% believe revenues will rise 5% to 10% in 2008.

Information on key benchmarks and operational data is collected each year from CPA firms around the U.S. by IOMA's "Accounting Office Management & Administration Report (AOMAR)." The data is compiled and analyzed in the "Handbook," one of the most respected resources for CPA firm practice management data in the profession.

"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," said Susan F. Sandler, 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 -- a trend that will continue in 2008. CPA firms are also continuing to explore alternative billing and fees, demonstrating a higher comfort level with moving away from the traditional billable hour.

"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."

Human resources issues are moving front and center in practice management, as CPA firms continue to work to staff their growing firms and to retain mid-level CPAs and administration staff. Staffing challenges are encouraging CPA firms to work smarter and more efficiently through technology improvements, and more CPA firms are moving firm administrators and other administration leaders into the executive management ranks, providing administration expertise that frees CPA firm partners to do what they do best.

Recruitment trends reported in the "Handbook" include using internships, flextime, telecommuting, and established relationships with local colleges and universities. Only 12.4% of the firms surveyed felt that offering a higher starting salary was a successful hiring tactic. CPA firms reported that flextime, 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.

About "AOMAR" and the "Handbook"

"AOMAR" is in its 24th year as a resource for practical and actionable practice management information for CPA firms, with an emphasis on small to mid-size firms. "AOMAR" covers compensation, recruiting, retention, staff management, marketing and business development, mergers and alliances, succession and retirement planning, and many other issues of interest to CPA firm managing partners, firm administrators, and other firm leaders. To subscribe, visit www.ioma.com/cpa .

"CPA Firm Statistical Analysis Reference Handbook 2008" contains a range of benchmarks, including compensation, billing rates, chargeable and total hours, flextime and telecommuting, digital technology, marketing activities, and staff retention. The "Handbook" also contains 30 Individual Firm Analyses with key benchmarks from responding firms. Forty-eight tables and charts are also included. To order, call 1-800-401-5937 ext. 2 and ask for report code 2639EA, or visit www.ioma.com/cpa .

About IOMA

The Institute of Management and Administration, Inc. (IOMA) has been a leading resource of business management information for experienced senior and middle-management professionals for over 25 years. IOMA is a division of The Bureau of National Affairs, Inc. (BNA), a major publisher of business, legal, and tax information and products. IOMA's products include high-quality newsletters, research reports, audioconferences, conferences, seminars, webinars, training, certification, advisory services, and more. For more information, visit www.ioma.com .

Contact: Susan F. Sandler Editor 212-244-0360 ext. 3906 Email Contact