Things that are recession-proof during a global pandemic:
- Public accounting firms
According to INSIDE Public Accounting, top-line growth for the top 100 public accounting firms this past year was 8.3%, which seemed like a pipe dream in March and April 2020 as the Rona was starting to rage in the U.S. Like in previous years, the top 50 firms outpaced the average, with a 9.2% overall growth rate (7% organic), while the bottom half of the top 100 grew at a rate of 7.6% (6.7% organic).
In addition, net income per equity partner averaged $860,668, up over $94,000 per partner from the previous year’s average, according to IPA.
But here’s something interesting that IPA mentioned while talking about net income per equity partner. IPA found that nearly all firms in the bottom half of the top 100 received Paycheck Protection Program loans to help offset potential losses and retain staff. But did partners benefit from unused PPP funds?
[The $860,668 amount does not] include any unused PPP loan funds that may have been distributed to the partners as well. This begs the question: Did the extra PPP money spur innovation and transformative investments to prepare firms for the future, or was it simply seen as a windfall that ultimately led to little more than a slew of new leases on Audis and BMWs, or that vacation home?
I think we can all agree that IPA answered its own question (i.e., slew of new leases on Audis and BMWs and new vacation homes).
Strong Client Demand, PPP Loans Combine To Propel Hiring And Solid Top-Line Growth For The IPA 100 [INSIDE Public Accounting]