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The 2024 INSIDE Public Accounting Firm Administration Report
The annual INSIDE Public Accounting (IPA) Firm Administration Report offers independent, in-depth analysis to improve firm operations.
Methodology
Each survey is reviewed and examined. If data appears to be incorrect or questionable, we resolve issues with the reporting firm. While we do everything possible to ensure accuracy, the participating firms bear the ultimate responsibility for providing accurate data.
Throughout this report, all tables are presented by revenue bands and population sizes. IPA has switched from reporting on regional data to data from population markets (larger than 2 million in population; 1 million-2 million; 250,000-1 million and less than 250,000). We feel that the difference in population markets provides a more meaningful analysis than regional differences. IPA does not provide data on any individual firm.
Terms and Definitions
Unless otherwise noted, all commentary excludes the Big 4 firms, and includes all participating firms. Not all firms chose to answer all questions. Percentages cited in the following pages/tables are based on firms that answered those specific questions. The averages included in this report are averages of data supplied by survey participants. Averages throughout the report are trim averages, providing the average of the 90% in the middle of the data set, excluding the largest and smallest 5%. In some instances, the averages may not appear to total correctly; this is a function of rounding. All data captured in each of the tables included in
this report are representative of the firms that completed the Firm Administration Survey.
Some of following data has been excerpted from the 2024 IPA Practice Management Report or other reports IPA publishes.
We extend our gratitude to the 333 firms that participated in this 14th annual IPA Firm Administration Survey.
Managing partners, firm administrators, controllers, office managers and others all played a part in gathering the required data for the survey. We appreciate your efforts and flexibility, your input and suggestions for improvement, and your willing cooperation in ensuring accurate and timely submissions.
Maintaining confidentiality is a responsibility we at IPA take very seriously. That uncompromising commitment is the foundation of our business, and we appreciate the trust you have placed in our company. We hope you will find value in this report.
Please remember IPA can also serve as a resource as you review benchmarking and performance improvement opportunities. IPA can also delve deeper into the trends and provide detailed information on specific areas of interest with customized reports.
We look forward to continuing to serve you and the profession, and with your feedback and suggestions, we strive to improve this report every year. Feel free to contact us.
executive summary
Summary Highlights
The 333 firms that participated in the IPA Firm Administration Survey this year include:
Partnership
Equity ownership for administrative personnel is rare within the profession. Twelve percent of reporting firms offer equity ownership to administrative staff, a number that has remained consistent from last year.
At 67% of participating firms, partner agreements have been updated within three years; at 27% of firms these agreements have been updated within the last 12 months; and at 7% of firms they haven’t been updated in 10 years or have never been updated.
Only 53% of firms have a succession plan in place for the MP / CEO, most
commonly among those above $30 million, with 67% having a plan.
Seventy-four percent of the firms have a client transition plan for all equity partners nearing retirement. For firms over $30 million, 88% have a client transition plan, and for those under $30 million, only 69% have a transition plan.
Two years of notice is required for retiring partners at 39% of firms, while 20% have no requirements for notice and 16% of firms require one year of notice.
Governance
When was the last time your partnership agreements were updated?
FIRM SIZE (Net Revenues)
POPULATION SIZES
2024 Practice Management Benchmarking Tools
MANAGEMENT BENCHMARKING PACKAGE (PDF ONLY)
Includes National Practice Management Benchmarking Report, Internal Operational Report Package and the Financial and Operational Report Card
Internal Operational Package includes all three reports (Firm Administration, Information Technology and Human Resources). PDF versions only.
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Report cards are available to fully participating firms only. Please allow three business days for preparation and delivery. Report Cards will be sent to MP / CEO only.
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