Top 100 Accounting Firms Revealed

INSIDE Public Accounting today released its 2010 list of the nation’s Top 100 accounting firms. The list also provided a snapshot of the financial and operational health of the largest CPA firms in the nation.

According to the report, the growth rate for the nation’s largest accounting firm was down 0.4 percent – the first contraction in 20 years – but five of the IPA Top 100 grew by more than 10 percent over 2009. The report also noted that 41 percent of the Top 100 firms showed an increase in revenue over last year, despite the downturn.

Still, the IPA Top 100 firms had to reduce their work force by about 2 percent, with total staff down approximately 4,100 compared to 2009.

“After belt-tightening, thinning out less productive staff and partners, and making the proper integration of systems and processes from mergers over the past few years, firms are poised for a quick recovery,” Michael Platt, co-publisher of the report, said in a statement (see attached). “Having learned the hard lessons of the Great Recession, IPA Top 100 firms are better prepared for the future and are eagerly awaiting the turnaround to a stronger world economy.”

Overall, the Top 100 accounting firms had an average staff turnover of 13.8 percent and the average wage for professional staff went down 1 percent to $79,103 from last year, the report said. The average partner billing rate was $368 and the average equity partner compensation was $537,253 – about $50,000 less than the average in 2008, according to the report.