How much revenue do CPA firms make?
Which accounting jobs pay the most money?
Two-thirds of CPAs based in the United States are satisfied with their current salary, and more than four-fifths expect to be earning more within a year, according to a new survey by the Association of International Certified Professional Accountants.
How much do firm owners make?
Do CPAs make six figures?
Self Employed CPA Salary
You can make 200K if you enter Big 4 and stay ~10 years until you become a very experienced Sr. Manager. To make 400K you’d need to spend 15 to 20 years in Big 4 and become a partner, which is hard to do.
Data provided by Sageworks, a financial information company, reveals that accounting, tax preparation, bookkeeping and payroll services (NAICS code 5412) was the most profitable small business industry in 2017, as measured by a pre-tax net profit margin of 18.4%.
The majority of accountants do not break the million-dollar mark when it comes to annual net revenues. A smaller percentage can produce between $1 million and $2 million each year. Only relatively few individual accountants are able to consistently drive more than $5 million net revenues annually to their firms.
Despite these challenges, CPA firms can still be highly profitable. However, many firms are feeling the crunch as software solutions and increased competition put pressure on profit margins.
In the AICPA survey, 25% of survey participants generate revenue of less than roughly $200,000. But US Census Bureau statistics suggest roughly 70% of CPA firms generate less than $200,000 revenue.
