Sneak Preview of Early Submissions of Annual Survey and Analysis of Firms

As of April 15, approximately 10% of the expected surveys this year had been submitted. Some firms continue to experience strong, steady growth, and the distribution of “growth” versus “decline” is much stronger than in previous years. Although the 60 responses are too small a subset to make definitive statistical conclusions, a few things jumped out that may be of interest.

  • Nine of every 10 firms saw top-line growth last year; an average of 6.1% over the previous year.
  • Four out of five firms experienced growth in the bottom line, up 8.3% over the previous year.
  • Two-thirds of firms saw net income per partner rise in 2013, up a median 7.7%, with the largest jumps in $10 million to $20 million firms. Median net income per partner in that group was $429,847.
  • Seventy percent of firms added staff last year, with total personnel averaging 4.6% higher than the previous year.
  • On average, profit margins aren’t moving much, with half the firms seeing increases and half seeing decreases in net income as a percentage of net revenue.
  • Business is picking up, with total charge hours growing in six of every seven firms. For the group, average charge hours are up about 6.0% over last year.
  • Net revenue per charge hour – the firmwide effective billing rate – increased in two-thirds of firms, with average growth up ever so slightly at just 2.3%.