CPA industry benchmarks tell you where to look. They can’t tell you whether your firm can grow, or whether it can keep running without you. Used well, they point you to the right questions. Used poorly, they create false confidence or needless worry.

Why CPA industry benchmarks need the right peer group

Many factors change what a “good” number looks like. Firm size and geography matter. So do service mix, pricing model, client complexity and the use of contractors. Comparing a tax-heavy local practice with a scaled CAS firm may create more confusion than insight.

One industry profile of CPA practices describes an average firm with roughly 11 employees and about $2.9 million in revenue. It also offers broad reference points:

  • Salaries near 29% to 30% of revenue
  • Technology spending around 4% to 5% of revenue
  • Collection periods of roughly 27 to 34 days
  • Annual employee turnover near 15%

Treat these as conversation starters, not universal targets.

Revenue per employee needs context

The same profile shows revenue per employee generally rising with firm size. Still, the ranges are wide. A higher number may reflect better leverage and pricing. It may also signal understaffing or heavy outsourcing. In some firms, partners are doing work that hasn’t been counted properly.

Staffing pressure makes this harder to read. The U.S. Bureau of Labor Statistics projects about 124,200 openings for accountants and auditors each year over the decade. Many come from people leaving the field or retiring. A lean team can look efficient on paper while running on borrowed time.

Don’t confuse growth with health

The AICPA’s 2025 National MAP Survey reported median growth of 6.7% in total net client fees. Client accounting and advisory revenue also kept growing.

Fast growth can hide thin pricing, an exhausted team or a single large account. On the other hand, lower current EBITDA can reflect a deliberate investment in leaders and systems. Ask what produced the number, and whether the result can last. Our guide to EBITDA multiples explains why buyers care so much about that question.

Read CPA industry benchmarks three ways

  • Level: Where are you today compared with a relevant peer group?
  • Trend: Has the number improved or slipped over several periods?
  • Cause: What is driving it, and can that continue?

A single number rarely tells the full story. The trend and the cause usually matter more than the level.

Questions that make the comparison useful

  • Is growth coming from price, volume, new clients or expanded services?
  • Are utilization and realization improving without driving turnover?
  • Does revenue per employee show efficiency or a capacity problem?
  • Did collections improve because billing discipline improved?
  • Is turnover concentrated at one level or under one manager?
  • Are CAS and advisory growing with healthy contribution margins? Do clients involve the firm before major decisions?
  • Does profitability still look attractive after partner labor is normalized?

That last question often surprises owners. Buyers adjust for what it would cost to replace the work partners do today. Learn more in how business and professional services companies are valued.

Use accounting firm benchmarks to investigate, not to grade

Some industry observers describe a “great sifting” underway. On one side are firms adapting to technology and changing client expectations. On the other are firms standing still. Treat that as a challenge to examine, not a forecast of any firm’s price.

Compare your retention, service-line contribution and owner dependence over time. These are the same factors that shape professional services firm valuation. If a sale is on the horizon, our guide to preparing a professional services company for sale is a good next step.

So, what is your firm becoming?

Sources and context

Educational material only. A firm’s value and transaction structure depend on its specific facts, buyer universe, market conditions, tax considerations and legal requirements.