2012 MAP SURVEY Results for California Firms Presented by California Society of CPA's MAP Committee.

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SIZE OF FIRM

• SMALL FIRM $0 TO $499K

•MEDIUM FIRM $500K TO $1.49M

• LARGE FIRM $1.5M AND UP

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NUMBER OF FIRMS IN CA WHO PARTICIPATED

TOTAL 262 FIRMS

• SMALL 105 FIRMS

•MEDIUM 88 FIRMS

• LARGE 69 FIRMS

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< $200K $200 < $500K

$500 < $750K

$750 < $1.5M

$1.5M < $5M

$5M < $10M

$10M +

41.0%

59.1%

0.4660.534

0.826

0.101 0.073

PARTICIPATION BY FIRM SIZESmall Medium Large

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< 1 1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 > 50

9.5% 12.4%21.9%

30.5%21.9%

1.0% 2.9%

5.7%8.0%

27.3%

34.1%

18.2%

2.3% 4.6%

2.9%

8.7%

8.7%

24.6%

21.7%

14.5%

18.8%

HOW MANY YEARS IN BUSINESS

LargeMediumSmall

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FIRM MEMBERSHIPS

PCPSAICPA

CPA Assoc./

Network

State So

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Assoc.

for Accti

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eting

American

Accting A

ssoc.

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

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FINANCIAL INFORMATION - GROSS

SMALL MEDIUM LARGE

A/R BILLED (less allowance) 65,129 172,537 1,038,897

WIP (unbilled less allowances) 11,150 41,276 340,857

FIRM CAPITAL (net capital) 61,129 162,044 1,356,384

PRIOR YEAR NET CLIENT FEES 247,127 842,622 5,759,863

BAD DEBT WRITTEN OFF, PY 2,091 19,065 85,389

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INCOMESMALL MEDIUM LARGE

GROSS FEES EARNED 265,732 890,297 6,761,678

NET WRITE-UPS (write-downs) -2,523 -26,512 -706,608

NET CLIENT FEES EARNED 263,209 863,785 6,055,070

NET WRITE-UPS (Downs) % OF GROSS

-3.1% -3.1% -8.7%

NET CLIENT FEES/GROSS FEES 99% 98% 93%

NET CLIENT FEES PER FTE PROF’L 205,831 221,490 239,916

NET CLIENT FEES PER PARTNER 276,979 512,356 1,192,113

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EXPENSESSMALL MEDIUM LARGE

PROF’L SALARIES (excluding owners)

18,039 153,193 1,594,606

PARAPROFESSIONAL SALARIES

17,499 43,085 179,203

OTHER SALARIES (excluding owners)

5,910 32,400 308,838

OTHER EE BENEFITS 3,855 15,278 166,352

DUES, LIBRARY 3,676 12,884 48,777

CPE 1,828 4,306 37,571

MALPRACTICE INSURANCE 2,499 8,817 59,439

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EXPENSES (continued)

SMALL MEDIUM LARGE

RENT & OTHER OCCUPANCY COSTS 16,920 56,694 350,521

INTEREST EXPENSE 1,404 3,639 16,632

COMPUTER & TECHNOLOGY 9,006 22,849 128,789

PROMOTION & MARKETING 2,349 6,905 74,528

PAYROLL TAXES 4,528 22,178 174,409

OTHER EXPENSES 33,980 90,452 518,594

TOTAL EXPENSES 125,776 491,895 3,863,271

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EXPENSES (continued)

SMALL MEDIUM LARGE

NET REMAINING FOR OWNERS 138,280 376,292 2,263,769

NET REMAINING TO OWNERS 145,514 223,199 445,687

NET REMAINING PER OWNER – HOUR

$70 $107 $214

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6.8%

6.6%

2.2%

1.5%

1.4%

0.7%

0.9%

6.4%0.5%

3.4%0.9%

1.7%

12.9%

Small

Prof'l SalariesParaprofessional salariesOther SalariesOther EE BenefitsDues, LibraryCPEMalpractice Ins.Rent & Other Occ. CostsInterest ExpenseComputer & TechnologyPromotion & MarketingPayroll TaxesOther Expenses

Expense as % of Net Client Fees

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17.6%

5.0%

3.7%

1.8%1.5%0.5%1.0%

6.5%0.4%

2.6%

0.8%

2.6%

10.4%

Medium


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26.0%

2.9%

5.0%2.7%

0.8%

0.6%

1.0%

5.7%

0.3%

2.1%

1.2% 2.8%

8.5%

Large


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As a % of Net Client Fees

Small Medium Large0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

47.6%

56.7%

63.1%

52.4%

43.3%

36.9% Total ExpensesNet remaining for owners

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ACCOUNTS RECEIVABLE

Current Over 30 Days Over 60 Days Over 90 Days0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

57.4%

10.5% 11.2%

20.9%

44.6%

13.8% 13.1%

28.5%

37.1%

15.0%13.5%

34.4% SmallMediumLarge

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Percent of Fees by Service

3.3% 1.0% 0.1% 1.0%

7.2%

7.6%1.5%

0.7%0.3%0.2%

0.1%

36.1%

24.9%

11.3%

4.8%

Small Audit - Non Public

Other Attest

Niche Specialties

Forensic/Litigation

Compilations & Reviews

Consulting

Payroll

Financial Planning

Investment Advisory

IT consulting

M & A

Tax - Individual

Tax - Other

Write-Up

Other

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9.9%0.7%

0.9%

2.9%

9.0%

5.0%

1.6%

0.5%

0.1%

29.4%

27.4%

9.5%

3.1%

Medium

Audit - Non PublicOther AttestBusiness ValuationForensic/LitigationCompilations & ReviewsConsultingPayrollFinancial PlanningInvestment AdvisoryTax - IndividualTax - OtherWrite-UpOther

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18.3%

0.6%

1.0%0.5%

0.4%2.9%

10.7%

5.2%1.5%

0.3%

0.5%0.2%0.3%24.4%

25.3%

5.9%

2.2%

Large

Audit - Non Public

Audit - Public

Other Attest

Niche Specialties

Business Valuation

Forensic/Litigation

Compilations & Reviews

Consulting

Payroll

Financial Planning

Investment Advisory

IT consulting

M & A

Risk Services/Internal Audit

Tax - Individual

Tax - Other

Write-Up

Other

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Billing Methods

Commissions Fixed Fee Periodic Per Tax Form Fee

Percentage of Assets

Risk Based Transaction Based

Value Billing0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

3.6%

60.7%

7.1%

27.4%

3.6% 4.8% 6.0%

51.2%

7.8%

86.3%

9.8%

19.6%

2.0% 2.0%

7.8%

56.9%

68.3%

6.7%5.0% 1.7% 3.3%

5.0%

60.0%

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Estimated Bill Rate for $50,000 per Year Professional Staff

• Small $ 96

•Medium $105

• Large $103

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NUMBER OF STAFF – PROFESSIONAL FTE

SMALL MEDIUM LARGE

PARTNERS/OWNERS (INCL. PT) .95 1.69 5.08

DIRECTORS (11+ YRS EXP.) .03 .29 1.75

SENIOR MANAGERS (8-10 YRS EXP.) .02 .40 3.31

MANAGERS (6-10 YRS EXP.) .02 .28 3.13

SR. ASSOCIATES (4-5 YRS EXP.) .10 .61 6.07

ASSOCIATES (1-3 YRS EXP.) .13 .49 4.00

NEW PROFESSIONALS .03 .15 1.91

TOTAL PROFESSIONALS 1.28 3.9 25.24

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NUMBER OF STAFFNon-PROFESSIONAL

SMALL MEDIUM LARGE

Internal Technical Support 0 .02 .52

Administrator/Office Manager .13 .56 1.21

Paraprofessionals .17 .32 1.62

Clerical (data entry, etc.) .13 .45 2.95

Marketing Staff 0 .02 .32

HR Staff 0 .01 .23

Other 0 .02 .29

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Average Chargeable Hours Professional

SMALL MEDIUM LARGE

PARTNERS/OWNERS (INCL. PT) 1,176 1,301 1,116

DIRECTORS (11+ YRS EXP.) 1,610 1,580 1,171

SENIOR MANAGERS (8-10 YRS EXP.) 1,146 1,642 1,377

MANAGERS (6-10 YRS EXP.) 1,135 1,556 1,465

SR. ASSOCIATES (4-5 YRS EXP.) 1,642 1,522 1,493

ASSOCIATES (1-3 YRS EXP.) 1,529 1,511 1,524

NEW PROFESSIONALS 1,664 1,363 1,382

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Average Chargeable HoursNon-Professional

SMALL MEDIUM LARGE

Internal Technical Support 0 0 144

Administrator/Office Manager 722 431 264

Paraprofessionals 1,159 1,374 1,238

Clerical (data entry, etc.) 730 517 315

Marketing Staff 0 0 26

HR Staff 0 449 130

Other 0 489 482

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Average Billing RateProfessional

SMALL MEDIUM LARGE

PARTNERS/OWNERS (INCL. PT) $188 $239 $286

DIRECTORS (11+ YRS EXP.) $167 $166 $262

SENIOR MANAGERS (8-10 YRS EXP.) $140 $164 $199

MANAGERS (6-10 YRS EXP.) $114 $140 $174

SR. ASSOCIATES (4-5 YRS EXP.) $109 $118 $137

ASSOCIATES (1-3 YRS EXP.) $ 74 $ 93 $113

NEW PROFESSIONALS $ 55 $ 81 $ 91

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Average Billing RateNonProfessional

SMALL MEDIUM LARGE

Internal Technical Support 0 0 $126

Administrator/Office Manager $ 50 $ 70 $ 88

Paraprofessionals $ 77 $ 93 $ 92

Clerical (data entry, etc.) $ 47 $ 58 $ 69

Marketing Staff 0 $ 50 $ 88

HR Staff 0 $ 65 $118

Other 0 $ 53 $ 96

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Average CompensationProfessional

SMALL MEDIUM LARGE

PARTNERS/OWNERS (INCL. PT) $137,461 $288,299 $370,379

DIRECTORS (11+ YRS EXP.) $118,314 $122,964 $152,730

SENIOR MANAGERS (8-10 YRS EXP.) $ 66,991 $103,235 $108,423

MANAGERS (6-10 YRS EXP.) $ 57,660 $ 74,022 $ 83,495

SR. ASSOCIATES (4-5 YRS EXP.) $ 65,146 $ 68,675 $ 69,986

ASSOCIATES (1-3 YRS EXP.) $ 49,481 $ 54,372 $ 55,450

NEW PROFESSIONALS $ 48,089 $ 40,487 $ 46,361

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Average CompensationNonProfessional

SMALL MEDIUM LARGE

Internal Technical Support 0 $ 76,156 $ 73,030

Administrator/Office Manager $ 43,257 $ 50,735 $ 66,075

Paraprofessionals $ 47,388 $ 48,927 $ 55,870

Clerical (data entry, etc.) $ 37,188 $ 38,216 $ 43,399

Marketing Staff 0 $ 40,337 $ 74,508

HR Staff 0 $ 55,369 $ 79,746

Other 0 $ 45,004 $ 81,482

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Utilization- ProfessionalSMALL MEDIUM LARGE

PARTNERS/OWNERS (INCL. PT) 56.5% 62.6% 53.6%

DIRECTORS (11+ YRS EXP.) 77.4% 75.9% 56.3%

SENIOR MANAGERS (8-10 YRS EXP.) 55.1% 78.9% 86.2%

MANAGERS (6-10 YRS EXP.) 54.6% 74.8% 70.4%

SR. ASSOCIATES (4-5 YRS EXP.) 78.9% 73.2% 71.8%

ASSOCIATES (1-3 YRS EXP.) 73.5% 72.7% 73.3%

NEW PROFESSIONALS 80.0% 65.5% 66.4%

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Paid Time Off – Days by CategorySMALL MEDIUM LARGE

SICK DAYS 4.5 5.9 6.5

VACATION DAYS 9.9 14.0 14.6

OTHER (e.g., prof’l activities) .6 5.7 2.8

AGGREGATE PTO 7.8 14.6 17.9

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EMPLOYEE BENFITS Provided or PaidSMALL MEDIUM LARGE

Cafeteria Plan 9% 27% 67%

Continuing Education 54% 86% 97%

CPA Exam Fees 8% 36% 65%

CPA Exam Review Course 4% 27% 36%

Graduate Degrees 1% 8% 39%

Dependent Health Insurance 10% 22% 33%

Dental Insurance 13% 49% 64%

Life Insurance 15% 23% 68%

Long Term Disability 8% 16% 48%

Professional Dues 42% 77% 94%

Professional Licenses 38% 77% 91%

Retirement Plan 37% 72% 90%

Health Insurance 49% 91% 97%

Voluntary Benefits (Life, LTD etc) 5% 8% 35%

None of These 30% 1% 0%

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Percent of Health InsurancePaid by firm

0 - 20% 21 - 40% 41 - 60% 61 - 80% 81 - 100%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

12.0%

6.0% 8.0%4.0%

71.0%

15.0%14.0% 11.0%

60.0%

6.0%4.0%

6.0%10.0%

73.0%

SmallMediumLarge

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Partnership SuccessionWhich of the following do you have in Place?

Succession Plan

Formal Partner Training Program

Practice Continuation Agmt

Written Firm Partnership Agmt

Partner Compensation Formula

Malpractice Insurance Policy

None of These

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

5.0%

1.0%

6.0%

1.0%

2.0%

78.0%

19.0%

22.0%

2.0%

6.0%

38.0%

25.0%

92.0%

8.0%

33.0%

10.0%

78.0%

45.0%

93.0%

3.0%

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Malpractice Insurance Limit

ALL CA SMALL MEDIUM LARGE

$1,540,352 $ 845,185 $1,289,872 $2,804,451

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PARTNERSHIP AGREEMENT INCLUDESSMALL MEDIUM LARGE

BUY–OUT 100% 82% 91%

CONDUCT 100% 61% 74%

DEATH 100% 85% 94%

DISABILITY 100% 73% 87%

EARLY WITHDRAWAL 100% 55% 65%

MANDATORY AGE 0 6% 30%

NON COMPETITION 0 48% 61%

RETIREMENT 100% 64% 70%

CAP ON MAX PYMT TO RETIRING PARTNER

0 3% 26%

NOTIFICATION REQU. PRIOR TO RETIRMENT

0 39% 44%

MANAGING CAPITAL ACCOUNTS 0 39% 31%

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Partner Compensation Formula IncludesSMALL MEDIUM LARGE

Administrative Duties 0% 45% 65%

Client Billing 50% 55% 77%

Compliance with Business Plan 0% 14% 16%

Interest on Capital 0% 18% 32%

New Clients 50% 27% 35%

New Bus. From Present Clients 0% 14% 32%

Niche/New Services Developed 0% 5% 10%

Timely Billing 0% 50% 58%

Training/Mentoring 0% 14% 19%

Years of Service 0% 14% 19%

Personal Billable Time 50% 59% 71%

Post-Retirement Comp Formula 0% 0% 10%

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Bonus/Incentive % of Total


3.7% 1.5% 3.1% 7.5%


3.7% 2.6% 4.4% 4.2%

Average Annual Base Salary Increase

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Technology – Does Your Firm?SMALL MEDIUM LARGE

Have an Active Monitored Website 56% 76% 96%

Have a Client Portal 28% 44% 61%

Have a Blog 11% 8% 12%

Use Social Media 26% 22% 41%

Use Multiple Computer Screens 60% 77% 96%

Paperless Work Environment 55% 55% 75%

Accept Credit Cards 39% 52% 65%

Remote Access to Network 42% 60% 90%

Use Cloud-Based Software 31% 32% 36%

Use Skype or Similar Service 17% 18% 23%

Deliver Tax Returns Digitally 67% 66% 77%

Promote Mobile Technology 18% 15% 32%

None of These 6% 1% 14%

2012 MAP SURVEY Results for California Firms Presented by California Society of CPA's MAP Committee.

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Transcript of 2012 MAP SURVEY Results for California Firms Presented by California Society of CPA's MAP Committee.