revenue and profit both higher.
by 卡塔尔世界杯常规比赛时间 research
in terms of client lists, revenues and profits, accounting and tax prep firms are reporting a pretty good year – maybe not as good as they expected four or five months ago, but still, not bad.
back in december and january, the early results of the 卡塔尔世界杯常规比赛时间 busy season barometer survey showed respondents somewhat optimistic about their upcoming year.
- 15 percent expected their client lists to grow by 10 percent or more. another 34 percent were hoping for a growth of 5 to 10 percent.
- a mere 9 percent were anticipating any kind of decrease in clientele.
- 41 percent didn’t see much change coming one way or the other.
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but now with firms looking back over their season, the stats are shifting again, with a big increase in those experiencing a decrease.
- the “about even” crowd drops five points below the january level to 36 percent.
- the “significant increase” crowd drops a couple of points to 13 percent.
- the 5-to-10 percent growth bunch bumps up to 34 percent.
- those expecting a 5-to-10 percent decrease in clientele made a big jump from 5 percent to 13 percent.
what’s going on?
don’t let the ups and downs of client lists fool you. a lot of the shrinkage is intentional as firms shed the problematic and think twice before taking on more.
chastity hooks, in lafayette, la., says her firm’s taking on fewer 1040-only clients.
derrick winke, an enrolled agent with a tax firm in troy, mich., says, “we’re working to enforce client deadlines, reducing problem clients, being more selective on new clients.”
the money numbers
the client numbers belie good news in the numbers that really matter: revenue and profit.
just between early march and mid-april, the money numbers have gone from good to better.
revenue
- those seeing a a significant increase in revenue (over 10 percent) edge up a point to 20 percent.
- those seeing some increase (5 to 10 percent) rise from 39 percent to 44 percent.
- those increases account for a significant drop in those who didn’t dare or fear any significant change, plummeting from 34 percent to 25 percent.
net profit
by mid-april, profits more or less parallel the rise in revenues.
- 15 percent report a significant increase.
- 45 percent report some increase.
- those expecting a decrease of any size dropped from 15 percent to 11 percent.
revenue per client
as of mid-april, revenue per client is also high.
- 59 percent are bringing in more than last year.
- only 5 percent are seeing a decrease.
profit per client
numbers for profit per client aren’t doing quite as well as revenue per client, though the numbers are close. expenditures for technology and staff may explain the difference.
still, the numbers aren’t bad.
- those seeing a significant increase constitute 9 percent of respondents.
- 45 percent are enjoying an increase of 5 to 10 percent.
- those expecting no change constitute 41 percent.
given the economic climate, the smaller client numbers, the difficulties of finding staff and paying them enough, the numbers aren’t bad. it’s been a good year. let’s hope accountants and their clients can survive the tariffs, the roller coaster of the stock and bond markets and whatever surprises hit the nation in the coming days.
it’s not too late to share your experience and opinions with the busy season barometer, but time is short. you’re wrapping up your tax season. click here to tell your colleagues across the nation how your firm did and what’s on the horizon.