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CCH’s Public Accounting Report Finds Top 100 Firms Realizing Double-digit Growth Rates
Revenue Growth Rate Highest Beyond the Big Four Accounting Firms as Largest Firms Shuffle in Rankings
(RIVERWOODS, ILL., September 1 , 2006) – Growth has been quite strong over the past year for the majority of accounting firms on Public Accounting Report 2006 Top 100, with firms’ revenue growth rates the highest reported since 2000. The Public Accounting Report is published by CCH, a Wolters Kluwer business and a leading provider of tax and accounting law information, software and services (CCHGroup.com) .
The CCH Public Accounting Report (PAR) 2006 Top 100 found an average revenue growth rate of 16.5 percent, compared to a growth rate of 9.1 percent in 2005. As in previous years, firms outside the Big Four posted stronger overall results than their larger counterparts, with non-Big Four firms growing their revenue at an average rate of 21.9 percent compared to 14.7 percent for the Big Four.
“Judging from the financial results posted by the Top 100, life is very good for these public accounting firms,” said Jonathan Hamilton, Public Accounting Report editor. “With companies facing greater regulation and relying more on their accounting firms for a broader array of services, the Top 100 definitely appear to be responding to these demands and reaping the benefits.”
In addition to revenue growth rates for overall firms, net revenue per partner also rose to more than $2.5 million, a 12.7 percent increase over 2005, while net revenues per professional rose 4.9 percent to $306,083, according to PAR 2006 Top 100 results.
Firm Rankings Shift
While there historically has not been a great deal of fluctuation in the ranking among the top 10 in PAR’s Top 100, this year saw some reshuffling. RSM McGladrey (Minneapolis) moved into the No. 5 spot with its October 2005 acquisition of American Express Tax and Business Services, and reported the highest growth rate on the PAR Top 100 at 59.5 percent. Crowe Group (Indianapolis), which has reported double-digit growth rates for five straight years, also moved up a spot to No. 8. According to the PAR survey, the top 10 of the Top 100 ranked by revenue are:
1. Deloitte (New York, N.Y.)
2. Ernst & Young (New York, N.Y.)
3. PricewaterhouseCoopers (New York, N.Y.)
4. KPMG (New York, N.Y.)
5. RSM McGladrey (Minneapolis, Minn.)
6. Grant Thornton (Chicago, Ill.)
7. BDO Seidman (Chicago, Ill.)
8. Crowe Group (Indianapolis, Ind.)
9. CBIZ/Mayer Hoffman McCann (Cleveland, Ohio and Leawood, Kan.)
10. BKD (Springfield, Mo.)
Overall across the Top 100, Beers & Cutler (Vienna, Va.) achieved the biggest ranking jump, moving from No. 62 on the 2005 list to No. 44 on the PAR 2006 Top 100.
Northeast and West Have Highest Regional Growth Rates
While the top 10 are mainly comprised of Big Four or national firms, the PAR 2006 Top 100 also looked at growth among regional firms, finding that those in the Northeast and in the West regions tied for top revenue growth rates, with each reporting average growth rates of 18.6 percent, compared to the overall average Top 100 growth rate of 16.5 percent. Firms in the Southeast region posted a 14.1 percent revenue growth rate, while growth rates for firms in the North Central were 13.6 percent and 11 percent in the South Central region.
Among those posting growth rates exceeding 30 percent were WithumSmith+Brown (Princeton, N.J.), Anchin, Block & Anchin (New York), Weiser (New York) and Stout Causey & Horning (Hunt Valley, Md.) in the Northeast; Armanino McKenna (San Ramon, Calif.) in the West; and Beers & Cutler (Vienna, Va.) in the Southeast. The largest revenue growth change in the North Central region was 24.1 percent reported by Doeren Mayhew (Troy, Mich.) and in the South Central region was 16.8 percent reported by Weaver and Tidwell (Fort Worth, Texas).
About the Survey
CCH’s Public Accounting Report, published since 1978, is an independent, biweekly newsletter for accounting professionals. PAR’s annual Top 100 survey, which has been conducted since 1992, analyzes data from firms’ most recently completed fiscal year and ranks them by U.S. net revenue. Net revenue is used rather than gross revenue, as gross revenue can be misleading because firms write off varying amounts of their fees.
For More Information
To order copies of the August 31, 2006 issue and Special Extra Issue covering the PAR 2006 Top 100 survey or to subscribe to CCH’s Public Accounting Report, contact CCH at 800-248-3248.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (CCHGroup.com) is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx® Office, CCH® Tax Research Network™, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill.
Wolters Kluwer is a leading multinational publisher and information services company. The company's core markets are spread across the health, corporate services, finance, tax, accounting, law, regulatory and education sectors. Wolters Kluwer has annual revenues (2005) of €3.4 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. For more information, see www.wolterskluwer.com.
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