tax & accounting firms wrestle fewer price increases from clients

following a short-lived surge in rate hikes, clients push back and competitors swoop in.

by 卡塔尔世界杯常规比赛时间

after hitting record billing rates in february, the nation’s tax and accounting firms are facing new resistance to price increases, in which the industry seems to be taking one step back for every two steps forward, according to a new 卡塔尔世界杯常规比赛时间 analysis.

the renewed pricing pressure suggests toughened competition in the marketplace and an overall softness in the economy as firms try to push up prices but have difficulty making them stick.

the latest data parsed by 卡塔尔世界杯常规比赛时间 research shows billing rates off by half of 1 percent, the seventh such decline in the last 12 months, leaving rates essentially unchanged in the last year.

the problems in raising and holding prices come after a strong surge last year in which fees rose 3 percent from march to october, according to 卡塔尔世界杯常规比赛时间 research.

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statistical snapshot: the nation’s tax & accounting industry

stats407,000 firms grossing $13 billion.

by 卡塔尔世界杯常规比赛时间

a new snapshot of the tax and accounting profession shows a vast and, in the main, highly profitable industry.

more than 400,00 firms are grossing over $13 billion a year, based on new data reviewed by 卡塔尔世界杯常规比赛时间. altogether, they run a total payroll of $5.4 billion and net $4.6 billion in profits.

but as many as one in five firms have no profits to report.
there were 42,448 cpa firms in 2013, the latest year available, and 364,902 other tax and accounting businesses, according to the data compiled and estimated by the irs from tax returns. cpa firms took in $4.1 billion in receipts, and the rest of the industry added $9 billion.

the complete set of data, below, reveals details about accounting industry finances and operations.

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tax & accounting firms lead u.s. economy in growth rates

employment and hours trending up.

by 卡塔尔世界杯常规比赛时间

professional and business services such as accounting are emerging as a bright spot in our economy, according to 卡塔尔世界杯常规比赛时间 sources.

the national unemployment rate remains at 5.1 percent. total nonfarm payroll employment increased by 142,000 in september, with 31,000 of those jobs coming in professional and business services. overall job growth has averaged 198,000 per month, compared to an average monthly gain of 260,000 in 2014. in professional and business services, monthly job growth has averaged 45,000 in 2015, compared to an average 59,000 in 2014.

accounting and bookkeeping employment hit the 1 million mark this year and keeps climbinh.
accounting and bookkeeping employment hit the 1 million mark this year and keeps climbing.

 

in accounting and bookkeeping services overall, the industry continued its upward climb, reaching 1,014,600 employees. the peak reflects a gain of 5,400 or 0.5 percent in the past month, and 47,000 or 4.9 percent in the past year.

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cpa firms hit the brakes on increases in billing rates

cpa firm price index through august 2015
cpa firm price index through august 2015

the good news? a lot less volatility.

by 卡塔尔世界杯常规比赛时间

after a period of rapid price increases, cpa firms appear to be backing off on rate hikes.

the price index for u.s. cpa firms reached 117.2 in august, representing a 15.1 percent price increase since the january 2005 baseline. this is the second time this year the index has reached this mark, with the other in march, and the highest point except for february’s 117.5. it denotes increases of 0.6 percent for the month and 0.3 percent for the year.

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the five treacherous factors hobbling today’s cpa firm

2016-roundtable-outlook-for-rosenberg-map-commentary-vf-240x219crumbling firm infrastructures, succession, the economy, staffing shortages, and shake-outs.

by 卡塔尔世界杯常规比赛时间
annual map survey

the new rosenberg map survey reveals a few significant things about the state of the accounting business—that growth and profit-per-partner are growing at a negligible rate and that intangible people issues are becoming painfully tangible, for example. but some more subtle truths emerge in the gimlet-eyed observations of those who advise cpa firms.

more on the  2016 outlook & forecast: cpa firm growth rates hit a wall  |  the five treacherous factors hobbling today’s cpa firm  |  sam allred: change agents needed  |  tamera loerzl on growth, succession plans critical for firms  |  allan koltin on talent wars go from white gloves to boxing gloves  |  get the full report: the rosenberg map survey

these truths are not self-evident. but with a little analysis, five trends emerge vividly – trends impacting cpa firms large, small, and middling. so it’s worth having a look:

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