EOY Accounting Practice Performance Wrap-Up

EOY Accounting Practice Performance Wrap-Up
The New Year has now come and gone and many firms are using this time to plan for the year ahead; using this financial year midpoint to check in against their financial year goals and budgets.

With our December Charge Rates, Salaries and Benchmarking Survey released early in December, we want to share with our accounting recipients a brief synopsis of the results to assist you with your evaluations.

Some commentary and highlights from this report are:

In short, it’s been another tough year in terms of practice performance
​Profitability went backwards for two thirds of the regions across the country, most notably in country regions across most states and within WA as a whole
The level of fees carried per partner is now $1+ Mill in almost two thirds of the regions with the others fast approaching this benchmark
Proposed rates of review for salaries were a little more conservative this period
Profitability for firms offering insolvency and audit services is generally positive; however firms with FP are finding it a little more challenging
Practitioners are typically receiving a total benefit package (salary and profit) of between $318K and $379K for the year depending on practice size and location
Raw growth remains negative for ten out of fifteen regions, more notably QLD
Staffing continues to grow in all regions, some quite considerably, except WA City firms
Earn rates have generally improved with write offs in single digits except for NSW City and Country, VIC City, QLD City, and WA City firms
Total average lock up is still 100+ days
Average staffing costs are still on the rise with WA City firms having the dubious honour of paying $80+K on average per staff member

For more detailed information, copies of the complete survey or participation therein, please CLICK HERE to download a registration form.