Reviewing Current Accounting Practice Benchmarks

It’s that time of year again when we madly collect, collate, review, analyse and then publish our June Charge Rates & Salaries Survey, a guide that has been assisting and advising accounting practices throughout Australia as to what to pay their personnel, and what to charge their time out at, for over 45 years now. In addition to rates and salaries, the report also benchmarks many other indicators of significance within the profession.

Thus, we wanted to share some of the highlights of this report’s results:

  • Many regions are now achieving profitability (prior to any equity holders’ benefits) better than the traditional 33%, although this doesn’t necessary mean profitability is increasing across the board
  • Perhaps not surprisingly, generally firms are needing to achieve higher productivity from its partners and personnel to achieve corresponding profitability
  • The size of proposed rate and salary reviews is mixed either side of CPI
  • The pressure for salary reviews must have eased a little as the frequency with which firms are reviewing salaries has reduced to be more in sync with rate reviews
  • Real growth remains tough for most regions with perhaps the exception of VIC City and SA Suburban firms
  • Pleasingly, WIP and debtors days are continue the trend downward, perhaps helped by more firms utilising regular payment approaches
  • Earn rates are rising whilst generally write offs are improving
  • Firms in WA as a whole seem to be reducing staffing numbers
  • The average cost of personnel continues to be a pain point for firms
  • Typical fees appear to be stabilising or increasing slightly.

For firms wishing to review this data in more detail as well as obtain the very latest charge rates and salaries, this report is available now to either participating or non-participating firms. Click here to register.

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