CPA Net Income Per Partner Up 16%

CPA Net Income Per Partner Up 16%
(What recession?)

	2010	2009
Leverage	6.6	6.8
Utilization	1,164	1,108
Billing Rate	$135	$132
Realization	91.3%	92.1%
Profit Margin	36.5%	34.8%
Net Income Per Partner	$330,723	$283,364

• Leverage = Total personnel ÷ total number of equity owners.
• Utilization = Chargeable hours of the firm ÷ total personnel.
• Billing Rate = Standard fees ÷ firm chargeable hours.
• Realization = Net fees ÷ standard fees.
• Profit Margin = Net income ÷ net fees.
• Net Income Per Partner (NIPP) = Leverage x utilization x billing rate x realization x profit margin.

Source: Accounting Office Management & Administration Report, February 2010. Subscribe here: subserve@ioma.com.