INSIDE Public Accounting (IPA), the award-winning newsletter for the public accounting profession, has released its annual financial performance analysis and rankings of the nation’s largest public accounting firms. New in 2022 is the IPA 500, those firms ranked from No. 401 to No. 500.
The annual IPA national practice management survey draws participation from nearly 600 of the largest firms. The leader in data collection for the public accounting profession since 1990, IPA boasts a 92% return rate of participating firms.
Rankings of The IPA Top 100 Firms
Now in its 32nd year, the annual list is made up of the Big 4, which collectively generated more than $70.8 billion in U.S. revenue, and 96 national, regional and local firms. These 96 firms range from Chicago-based RSM US ($3.3 billion) at No. 5, to Columbus, Ohio-based GBQ Partners LLC ($44.5 million) at No. 100.
The IPA 200, 300 and 400 Firms
IPA also ranks and provides key data on the IPA Top 400, which ranks firms from No. 101 ($43.6 million) to No. 400 ($8.4 million).
The Inaugural IPA 500 Firms
This year, IPA is excited to launch the first-ever ranking of the IPA 500 (Nos. 401-500), which range in size from $8.4 million to $3.9 million and account for $613 million in revenue annually. The annual rankings and accompanying analysis paint a comprehensive picture of the state of the public accounting profession.
Demographics of the Public Accounting Profession – 2022
The Big 4 – Deloitte, PwC, EY and KPMG – collectively make up nearly 70.7% of the total revenue of this year’s IPA 100. Due to their size, IPA excludes metrics of the Big 4 in its in-depth analysis of the profession to provide all other accounting firms with meaningful comparative practice management data. The next 96 firms represent $29.4 billion in total revenues and employ more than 125,000 staff. Excluding the Big 4, 51 firms represented in the IPA 100 boast annual revenues exceeding $100 million.
The IPA 100: Key Highlights of America’s 100 Largest Firms (Excluding the Big 4)
- Organic growth (excluding mergers) came in at 12.9%, a substantial increase from 6.8% in 2021.
- Close to 100 acquisitions (of both traditional CPA firms and non-CPA firms) were reported by this group, pushing the overall growth rate to 15.6%, up from 8.3% in 2021.
- Organic growth in net income this year was at 18.9%, up slightly from 17.4% in 2021.
- Average equity partner billing rates are now at $494 per hour for the IPA 100.
- Professional staff turnover (CPAs and other client-serving professional staff) averaged 18.7% for the IPA 100, with more than 1 in 3 firms averaging more than 20% professional staff turnover.
- One out of every 10 equity partners / owners in a CPA firm is not a licensed CPA.
“Despite the many headwinds of change and disruption facing the US economy, the nation’s largest public accounting firms are facing unprecedented demand for their services,” says Mike Platt, principal with INSIDE Public Accounting. “As client companies maneuver to navigate supply chain disruption, staffing shortages, inflation and return-to-work policies post-COVID, the nation’s largest accounting firms are helping to guide the way, truly becoming hands-on advisors to their clients and moving significantly beyond traditional compliance work.”
In-Depth Financial and Operational Benchmarking of the Public Accounting Profession
The full analysis of the nearly 600 public accounting firms will be published in September in IPA’s annual National Practice Management Benchmarking Report. The September issue of the subscription-based IPA newsletter includes the annual IPA Best of the Best firms, those high-performers at the top of their game, along with IPA’s Fastest-Growing Firms from across the nation.
Subscribe to the monthly IPA newsletter to receive upcoming benchmarking analyses and in-depth interviews with key leaders within the profession. IPA also offers a complimentary news source, the IPA INSIDER E-News Update. Sign up online.
Purchase any of the 2022 National Practice Management Benchmarking Reports to stay up to date with the gold standard data of analysis for the profession.
To interview the principals at INSIDE Public Accounting, please contact INSIDE Public Accounting at (317) 733-1920 or [email protected].
FOR THE FULL LIST OF THE 2022 IPA TOP 500 FIRMS CLICK ON THE IMAGE BELOW.
About INSIDE Public Accounting
INSIDE Public Accounting (IPA) is a leader in practice management resources for the public accounting profession. IPA offers training as well as the monthly practice management newsletter and four national practice management benchmarking reports every year. IPA has helped firms across North America grow and thrive since 1987.
For copies of the 2022 IPA firm rankings, customized reprints and pricing information, please contact Chelsea Summers at [email protected].