Steady Growth – Hallmark of The Nation’s Top 100 Accounting Firms, According to INSIDE Public Accounting’s Annual Ranking Report

Carmel, Ind.-based INSIDE Public Accounting (IPA) is pleased to continue its 23-year history of reporting on the nation’s largest 100 public accounting firms.

“The IPA 100 firms enjoyed steady growth in 2012-2013,” says Kelly Platt, principal of the Platt Group, the publisher of IPA. “While growth through mergers dominated the headlines, organic growth is making a healthy comeback as the IPA 100 firms continue to expand and deepen their service areas and specialty practices,” she says.

For the 2013 IPA 100, organic revenue growth (excluding mergers) averaged 5.2%. In 2013, 24 firms, excluding the Big 4, reported more than $100 million in net revenues, and five more IPA 100 firms reported net revenues in excess of $90 million.

The Big 4 – No. 1 Deloitte, No. 2 PwC, No. 3 EY (formerly Ernst & Young) and No. 4 KPMG – all showed strong gains in 2012, growing $3.5 billion in revenues or 10.5%, for a total of $37.2 billion.

“The big winners in growth this year are dominated by firms in California and New York,” says Michael Platt, principal of the Platt Group, the publisher of IPA. “As a group, the 10 fastest-growing IPA 100 firms derive 32% of revenues from non-traditional services, a full one-third more than their peers. This reflects a trend among clients to spend more on consultative services,” Platt says.

“As has been the case for the past few years, stronger profit margins west of the Mississippi continue to account for regional differences of the IPA 100 firms,” says Kelly Platt. “With margins averaging 32.7% across the Great Plains and 32.0% across the West, profit opportunities are greater for these firms than their counterparts in the Great Lakes, Northeast and the Southeast.”

Four firms debuted this year on the IPA 100. They are: Louisville, Ky.-based Mountjoy Chilton Medley at No. 83; Sacramento, Calif.-based Macias Gini & O’Connell at No. 85; Roseville, Calif.-based Gallina LLP at No. 94 and New York-based PragerMetis International at No. 97.

Due to two mega-mergers among the 20 largest firms in 2012, two rebranded / new firms are included in the IPA 100. No. 10, Minneapolis-based CliftonLarsonAllen, is the result of the combination of Clifton Gunderson and LarsonAllen; and No. 11, New York-based CohnReznick, came about after the merger of J.H. Cohn and Reznick Group.

Highlights of the IPA 100:

5.2% – Average revenue growth (excluding mergers).

6.4% – Average net income growth (excluding mergers).

14.8% – Average staff turnover.

28.0% – Average profit margin (net income as a percentage of net revenue), from 29.9% last year.

$83,589 – Average pay for professional staff (up 3.1% from last year).

$391 – Average partner billing rate (up 4.0% from last year).

$578,243 – Average equity partner compensation (up 4.0% from last year).

For the complete list of 2013 IPA 100 firms, visit our web site. 

About The Platt Group and INSIDE Public Accounting: INSIDE Public Accounting (IPA), founded in 1987, is published by The Platt Group. The Platt Group publishes both the award-winning INSIDE Public Accounting newsletter and the award-winning National Benchmarking Report. The Platt Group also advises, consults and helps firms move to a more successful level. With more than 26 years of independent reporting and more than 23 years of surveying and benchmarking experience, The Platt Group works with managing partners, CFOs and thought leaders across the nation to provide practical ideas, benchmarking data and information to take firms to the next level of improvement. For copies of the 2013 IPA 100 Firms issue, reprints and customized reprints, and pricing information, please contact Kayla Shelburn at (317) 733-1920; info@plattgroupllc.com. For more information visit: http://insidepublicaccounting.com/pages/benchmarking-survey.php Subscription information: http://insidepublicaccounting.com/PDF/New_Subscriber_Form.pdf