Revenue and expenses of accounting firms, 2nd annual ...
35
University of Mississippi University of Mississippi eGrove eGrove Newsletters American Institute of Certified Public Accountants (AICPA) Historical Collection 1963 Revenue and expenses of accounting firms, 2nd annual survey Revenue and expenses of accounting firms, 2nd annual survey 1963; Management of an accounting practice bulletin, MAP 14b 1963; Management of an accounting practice bulletin, MAP 14b Robert N. Sempier Follow this and additional works at: https://egrove.olemiss.edu/aicpa_news Part of the Accounting Commons, and the Taxation Commons Recommended Citation Recommended Citation Sempier, Robert N., "Revenue and expenses of accounting firms, 2nd annual survey 1963; Management of an accounting practice bulletin, MAP 14b" (1963). Newsletters. 233. https://egrove.olemiss.edu/aicpa_news/233 This Book is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection at eGrove. It has been accepted for inclusion in Newsletters by an authorized administrator of eGrove. For more information, please contact [email protected].
Transcript of Revenue and expenses of accounting firms, 2nd annual ...
University of Mississippi University of Mississippi
eGrove eGrove
Newsletters American Institute of Certified Public Accountants (AICPA) Historical Collection
1963
Revenue and expenses of accounting firms, 2nd annual survey Revenue and expenses of accounting firms, 2nd annual survey
1963; Management of an accounting practice bulletin, MAP 14b 1963; Management of an accounting practice bulletin, MAP 14b
Robert N. Sempier
Follow this and additional works at: https://egrove.olemiss.edu/aicpa_news
Part of the Accounting Commons, and the Taxation Commons
Recommended Citation Recommended Citation Sempier, Robert N., "Revenue and expenses of accounting firms, 2nd annual survey 1963; Management of an accounting practice bulletin, MAP 14b" (1963). Newsletters. 233. https://egrove.olemiss.edu/aicpa_news/233
This Book is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection at eGrove. It has been accepted for inclusion in Newsletters by an authorized administrator of eGrove. For more information, please contact [email protected].
MAP 14b
R EVEN U E A N D E X P E N S E S O FA C C O U N TIN GFIRM S
2ND ANNUAL SURVEY 1963
A MAN
AGEM
ENT O
F AN A
CC
OU
NTIN
G PR
AC
TICE
BULLETIN
Staff Bulletin Published byThe American Institute of Certified Public Accountants
This bulletin is a publication of the staff of the American Institute of Certified Public Accountants and is not to be regarded as an official pronouncement of the Institute. It was prepared by Robert N. Sempier, CPA, manager, management of an accounting practice.
MAP 14b
R EVEN U EA N D E X P E N S E SO FA C C O U N TIN GFIRM S
2ND ANNUAL SURVEY 1963
AMERICAN INSTITUTE OF CPAs
Copyright 1963 by theAmerican Institute of Certified Public Accountants, Inc. 666 Fifth Ave., New York, New York 10019
CONTENTSPage
Introduction ............................................................................ 5Methodology ............................................................................ 7Figure I Respondents by size of firm........................... 11Figure II Respondents by region.................................... 11Figure III Respondents by metropolitan area................ 11Exhibit I Percentages of firms with various gross in
come (all services) ...................................... 12Exhibit II Per cent of gross income by type of profes
sional services (regional basis).................. 13Exhibit III Total salary, operating expenses and net in
come percentages (nationwide basis). . . . 15Exhibit IV Staff salaries and outside services as a per
centage of gross income (regional basis) . . 16Exhibit V Operating expenses as a percentage of gross
income (nationwide basis)........................ 18Exhibit VI Net income before partners’ salaries, draw
ings and federal income tax (regional basis) ............................................................ 19
Exhibit VII Net income by number of partners before partners’ salaries, drawings, and federal income tax (small firms) ............................ 20
Exhibit VIII Net income by number of partners before partners’ salaries, drawings, and federal income tax (medium firm s)...................... 23
Exhibit IX Net income before partners’ salaries, drawings, and federal income tax (by region and size of metropolitan a rea ).................. 27
E xhib it X Usual billing rates per hour (by class of staffand region) .................................................. 30
Exhibit XI Usual method of determining hourly billingrates (by size of firm )................................ 33
Exhibit XII Average billings per person per year (by sizeof firm) .......................................................... 34
IN T R O D U C T IO N
The dual and interrelated purpose in publishing MAP No. 14, “Basic Financial Reporting for Accounting Firms,” was to provide practitioners with a uniform chart of accounts which could be used to improve the operation of their individual practices and to establish a base for the collection of comparable statistics for the benefit of the entire profession.
The results of the first survey on income and expenses of accounting firms was published in 1962 as MAP Bulletin No. 14A.
This survey is a continuation of a long-term professional statistical gathering program regarding revenue and expenses of accounting firms which permits the reader to compare his income and expenses with composite figures of responding firms of similar size, according to region and size of metropolitan area. The replies to the questionnaire have been tabulated and are presented in the accompanying exhibits.
The bulletin is published for the information and assistance of members of the Institute and others interested in the subject.
5
M E T H O D O L O G Y
A mailing of approximately 12,750 questionnaires was made to each firm and individual practitioner’s office represented in the Institute. Firms which had more than one office were requested to complete the questionnaire only for the office to which the questionnaire was addressed. The survey was conducted on a completely anonymous basis.
There were 2,204 replies of which 1,696 were usable in entirety and 198 partially usable (breakdown of professional income missing). The balance (310) were not usable because a significant number of questions were not answered.
All usable replies were transferred to punched cards at the Institute. The replies were then tabulated by an independent service bureau.
It is hoped that we may expect greater participation on the part of the membership with each succeeding survey.
In the interest of uniformity of understanding, the following explanations are provided:
M E D IA N
The “median” is the middle figure in a list in point of size. Thus, if there are 25 items there will be 12 equal to or higher than the median and 12 equal to or lower. The median of a group is con-
7
sidered more useful than an arithmetic mean ("average”) because it is not unduly affected by extremely high or extremely low items. Therefore, in using a median, it is possible for a series of figures not to total 100 per cent.
IN C O M E FR O M P R O F E S S IO N A L S E R V IC E S
Auditing—Includes audits in which an opinion is qualified or in which a disclaimer is issued.
Taxes —Includes tax returns, tax examinations, tax assessment appeals and estate planning.
Management services—Includes systems installations, investigations, cost analyses and other consulting and management services.
Other accounting services—Includes preparation of nonaudited statements and write-ups.
S A L A R IE S A N D O U T S ID E S E R V IC E S
Salaries professional staff—Includes salaries of accounting staff only.
Salaries other—Includes stenographers, typists, and other indirect salaries.
Outside services—Includes consultation with other firms, work performed by others of both a professional and nonprofessional nature relating to engagements, professional referral fee costs, and cost of data processing.
Note: Salaries, other than for partners or proprietor, include all salaries, wages, commissions, bonuses, profit sharing, overtime; in general, all items of direct compensation for services, including provisions for vacations, sick benefits, separation pay, military leave pay, holiday pay, etc.
8
N E T IN C O M E
It should be noted that MAP No. 14 recommends that partners’ salaries be deducted in the Income Statement of an accounting firm. For tabulating purposes, however, partners’ or proprietor’s salaries are not deducted from gross income in any of the following exhibits.
S T A T E S IN C L U D E D IN V A R IO U S R E G IO N S
New England —Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont.
Meddle Atlantic—Delaware, District of Columbia, Maryland,New Jersey, New York, Pennsylvania, West Virginia.
Southeast —Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia.
Central —Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, Wisconsin.
Northwest —Colorado, Idaho, Kansas, Montana, Nebraska, North Dakota, South Dakota, Utah, Wyoming.
Southwest —Arizona, New Mexico, Oklahoma, Texas.
Far West —Alaska, California, Hawaii, Nevada, Oregon, Washington.
9
IN C O M E A N D E X P E N S E S O F A C C O U N T IN G F IR M S
In reply to the question of whether the chart of accounts of the respondents generally conformed to the recommendations made in MAP Bulletin No. 14, 1,131 or 60 per cent indicated that it did. However, an exception was noted in that only 551 of the 1,131 respondents followed the recommended practice of charging partners’ salaries in the statement of income.
Size of firm (office), is determined by the number of partners and professional staff as follows:
Individual — Sole practitioner Small — 2-15 partners and professional staff Medium —16-35 partners and professional staff Large — over 35 partners and professional staff
10
The breakdown by size of firm (office) of the respondents is as follows:
Figure I
1963 1962Individual 410 310Small 1,353 1,028Medium 95 80Large 36 17
The breakdown by region of the respondents is as follows:
Figure II
1963 1962New England 90 66Middle Atlantic 413 279Southeast 293 231Central 389 303Northwest 132 113Southwest 217 161Far West 360 282
The breakdown by size of metropolitan area is as follows:
Figure III
1963 1962Under— 25,000 297 23325,000- 50,000 178 13050,000-100,000 201 157
100,000-500,000 421 323Over—500,000 797 592
11
Perc
enta
ges o
f Fir
ms W
ith
Exhi
bit I
Var
ious
Gro
ss In
com
e (a
ll se
rvic
es)
Am
ount
Less
than
$ 1
2,00
0 12
,000
-
18,0
00
18,0
00 -
25
,000
25,0
00 -
50
,000
50,0
00 -
10
0,00
0 10
0,00
0 -
25
0,00
0 25
0,00
0 -
50
0,00
0O
ver
—
500,
000
Tota
lLa
rge
1963
19
62
-%
4.2%
4.8
%8.
3 8.
110
.6
10.5
26.0
25
.5-
26
.2
26.5
18.1
19
.04.
4 4.
110
0 2.
2 1.
510
0%
100%
10
0%
Me
dium -%
20.0
73.7 6.3
100%
Smal
l
.6% 2.4
6.1
30.5
35.5
23
.9 1.0
100%
Indi
vi
dual
17.6%
30.4
28.8
19.8 3.2 .2 100%
12
Per C
ent o
f Gro
ss In
com
e by
Type
of P
rofe
ssio
nal S
ervi
ces†
Ex
hibi
t II
(reg
iona
l ba
sis)
Regi
on
Indi
vidu
al
Smal
l M
ediu
m
Larg
eN
EW
EN
GLA
ND
Aud
iting
50
% 45
%
70%
71
%Ta
xes
20
24
17
17M
anag
emen
t se
rvic
es
10
08
07
08O
ther
10
13
05
04
MID
DLE
ATL
AN
TIC
Aud
iting
30
53
60
65
Taxe
s 20
20
20
20
Man
agem
ent
Serv
ices
04
05
04
10
Oth
er
30
17
07
01SO
UTH
EAST
Aud
iting
31
34
50
67
Taxe
s 25
29
30
17
Man
agem
ent
Serv
ices
02
05
05
08
Oth
er
31
20
06
01C
ENTR
AL
Aud
iting
20
30
51
70
Taxe
s 24
25
20
13
Man
agem
ent
Serv
ices
07
10
10
09
Oth
er
39
25
10
05†
The
figur
es in
this
Exhi
bit
are
med
ians
. See
pag
e 7
for
expl
anat
ion.
13
Per C
ent o
f Gro
ss In
com
e by
Type
of P
rofe
ssio
nal S
ervi
ces†
Ex
hibi
t II
(con
tinue
d)(r
egio
nal
basi
s)Re
gion
In
divi
dual
Sm
all
Med
ium
La
rge
NO
RTH
WES
TA
uditi
ng
19%
20%
39
% *%
Taxe
s 28
35
40
*
Man
agem
ent
Serv
ices
10
07
07
*
Oth
er
40
23
12SO
UTH
WES
TA
uditi
ng
20
20
54
*Ta
xes
33
34
19
*M
anag
emen
t Se
rvic
es
05
06
03
*O
ther
35
28
10
FAR
WES
TA
uditi
ng
14
22
40
61Ta
xes
25
25
25
29M
anag
emen
t Se
rvic
es
03
07
04
09O
ther
40
34
07
00
na
tio
nw
ide
1963
1962
19
63 1
962
1963
196
2 19
63 1
962
Aud
iting
20
%
l9%
30
%
32%
51
% 5
0%
65%
6
5%Ta
xes
25
25
25
25
20
25
20
20M
anag
emen
t Se
rvic
es
05
04
07
05
05
15
08
10O
ther
35
37
23
25
07
10
01
5
• In
suffi
cien
t nu
mbe
r of
rep
lies
for
sepa
rate
cla
ssifi
catio
n.†
The
figur
es in
this
Exhi
bit a
re m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
14
Tota
l Sal
ary,
Ope
ratin
g Ex
pens
es a
nd N
et In
com
e Pe
rcen
tage
s†
Exhi
bit I
II(n
atio
nwid
e ba
sis)
Indi
vidu
al
Smal
l M
ediu
m
Larg
e19
63 1
962
1963
196
2 19
63 1
962
1963
196
2G
ross
Inc
ome
100%
100
%
100%
100
%
100%
100
%
100%
100
%To
tal S
taff
Sala
rie
s an
d O
ut
side
Ser
vice
s 12
% 13
% 31
%
31%
41
%
40%
50
%
53%
Gro
ss P
rofit
88
%
87%
69
%
69%
59
%
60%
50%
47
%O
pera
ting
Ex
pens
es
24%
24
%
21%
20
%
18%
19%
18%
17%
Net
Inc
ome
64%
63
%
48%
49
%
41%
41
%
32%
30
%
† Th
e fig
ures
in th
is Ex
hibi
t ar
e m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
15
Staf
f Sal
arie
s an
d O
utsid
e Se
rvic
es
Exhi
bit I
VA
s a P
erce
ntag
e of
Gro
ss In
com
e†(r
egio
nal
basi
s)
Regi
on
Indi
vidu
al
Smal
l M
ediu
m
Larg
eN
EW
EN
GLA
ND
Prof
essi
onal
Sta
ff —
% 21
%
40%
49
%O
ther
Sta
ff -
09
07
06
Out
side
Ser
vice
s —
01
—
—
MID
DL
E A
TLA
NTI
CPr
ofes
sion
al S
taff
—
24
31
41O
ther
Sta
ff -
07
07
08
Out
side
Ser
vice
s —
—
01
01
SOU
THEA
STPr
ofes
sion
al S
taff
—
22
25
35O
ther
Sta
ff 10
08
08
06
Out
side
Ser
vice
s _
_
_
_
CEN
TRA
LPr
ofes
sion
al S
taff
—
21
33
39O
ther
Sta
ff 05
08
07
07
Out
side
Ser
vice
s —
—
—
—
† Th
e fig
ures
in th
is Ex
hibi
t are
med
ians
. See
pag
e 7
for
expl
anat
ion.
16
Staf
f Sal
arie
s an
d O
utsid
e Se
rvic
es
Exhi
bit I
V (
cont
inue
d)A
s a P
erce
ntag
e of
Gro
ss In
com
e†(r
egio
nal
basi
s)
Regi
on
Indi
vidu
al
Smal
l M
ediu
m
Larg
eN
OR
THW
EST
Prof
essi
onal
Sta
ff —
% 21
% 31
%
*%O
ther
Sta
ff 14
08
07
*
Out
side
Ser
vice
s —
—
—
*
SOU
THW
EST
Prof
essi
onal
Sta
ff —
20
31
50
Oth
er S
taff
10
08
07
06O
utsi
de S
ervi
ces
—
—
—
—
FAR
WE
STPr
ofes
sion
al S
taff
—
21
34
37O
ther
Sta
ff 10
08
07
06
Out
side
Ser
vice
s —
—
—
—
1963
Z96
2 19
63 1
962
1963
196
2 19
63 1
962
NA
TIO
NW
IDE
Prof
essi
onal
Staf
f -%
-%
21
%
22%
31
%
31%
41%
43
%O
ther
Sta
ff 10
11
08
08
07
08
06
10
Out
side
Ser
vic
es
02
02
—
01
—
01
—
—
* In
suffi
cien
t num
ber o
f rep
lies
for s
epar
ate
clas
sific
atio
n.†
The
figu
res
in th
is Ex
hibi
t are
med
ians
. See
pag
e 7
for
expl
anat
ion.
17
Ope
ratin
g Ex
pens
es a
s a P
erce
ntag
e of
Cro
ss In
com
e†
Exhi
bit V
(nat
ionw
ide
basi
s)
Ope
ratin
g Ex
pens
es
Con
tribu
tions
Eq
uipm
ent
Expe
nse
Firm
Rel
atio
ns
Insu
ranc
eO
ccup
ancy
and
Mai
nten
ance
Oth
er O
pera
ting
Expe
nse
Post
age
and
Expr
ess
Prof
essi
onal
Dev
elop
men
tPr
ofes
sion
al M
embe
rshi
p Ex
pens
ePr
ovis
ion
for D
oubt
ful A
ccou
nts
Publ
icat
ions
Stat
ione
ry, P
rintin
g an
d Su
pplie
sTa
xes—
Oth
erTa
xes—
Payr
oll
Tele
phon
e an
d Te
legr
aph
Trav
el a
nd S
ubsi
sten
ceW
elfa
re a
nd G
roup
Ben
efits
† T
he fi
gure
s in
this
Exhi
bit a
re m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
Smal
l M
ediu
m
Larg
e
.1%
.2%
.1%
1.4
1.0
.8.3
.6
.9
.5
.4
.34.
6 4.
4 3.
8.7
1.
0 2.
0.3
.3
.1
.1
.3
.6.4
.4
.5
.0
.0
.0.8
.5
.4
2.0
1.6
1.3
.2
.1
.11.
1 1.
3 1.
41.
3 1.
0 .7
2.8
1.5
.4.0
.7
1.
5
Indi
vid
ual -% 1.
6 .2 .6 5.0 .7 .3 .0 .8 .0 1.0
2.3 .1 .2 2.0
3.9 .0
18
Net
Inco
me
Befo
re P
artn
ers’
Sala
ries
, Ex
hibi
t VI
Dra
win
gs, a
nd F
eder
al In
com
e Tax
†(r
egio
nal
basi
s)
Regi
on
Indi
vidu
al
Smal
l M
ediu
m
Larg
eN
ew E
ngla
nd
$13,
000
$26,
000
$179
,000
ov
er 1
99,0
00M
iddl
e A
tlant
ic
12,0
00
32,0
00
110,
000
over
199
,000
Sout
heas
t 11
,000
27
,000
11
8,00
0 ov
er 1
99,0
00C
entra
l 12
,000
33
,000
12
5,00
0 ov
er 1
99,0
00N
orth
wes
t 12
,000
24
,000
11
6,00
0 *
Sout
hwes
t 12
,000
27
,000
11
2,00
0 ov
er 1
99,0
00Fa
r W
est
11,0
00
29,0
00
128,
000
over
199
,000
Nat
ionw
ide
1963
19
62
1963
19
62
1963
19
62
1963
19
62ov
er
over
11,0
00 1
0,00
0 29
,000
29
,000
12
2,00
0 11
0,00
0 19
9,00
0 19
9,00
0
Med
ian
Num
ber
Partn
ers
1 2
4 8
Prof
essi
onal
Sta
ff 0
2 15
55
Oth
er S
taff
2 1
5 16
* In
suffi
cien
t num
ber o
f rep
lies
for
sepa
rate
cla
ssifi
catio
n.†
The
figur
es in
this
Exhi
bit a
re m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
19
Net
Inco
me
by N
umbe
r of P
artn
ers
Exhi
bit V
IIBe
fore
Par
tner
s’ Sa
lari
es, D
raw
ings
, and
Fed
eral
Inco
me T
ax
(sm
all
firm
s)
Regi
on
Low
H
igh
Med
ian
NE
W
ENG
LAN
DN
umbe
r of
Par
tner
s_
$ 5,
000
$121
,000
$1
8,00
02
14,0
00
84,0
00
28,0
003
25,0
00
126,
000
48,0
004
71,0
00
71,0
00
71,0
005
63,0
00
83,0
00
73,0
00
*
MID
DLE
ATL
AN
TIC
N
umbe
r of
Par
tner
s1
$ 3,
000
$125
,000
$1
5,00
02
10,0
00
104,
000
33,0
003
20,0
00
107,
000
54,0
004
53,0
00
150,
000
82,0
005
50,0
00
147,
000
84,0
00ov
er 5
*
*
20
Regi
on
Low
H
igh
Med
ian
SOU
THEA
STN
umbe
r of
Par
tner
s1
$ 3,
000
$ 44
,000
$1
7,00
02
6,00
0 81
,000
30
,000
3 19
,000
82
,000
42
,000
4 22
,000
14
7,00
0 73
,000
5 54
,000
11
0,00
0 80
,000
over
5
*C
ENTR
AL
Num
ber
of P
artn
ers
1 $
5,00
0 $
64,0
00
$ 20
,000
2 7,
000
80,0
00
35,0
003
15,0
00
119,
000
53,0
004
32,0
00
123,
000
61,0
005
48,0
00
124,
000
104,
000
over
5
*N
OR
THW
EST
Num
ber
of P
artn
ers
1 $
5,00
0 $
41,0
00
$ 15
,000
2 13
,000
75
,000
25
,000
3 23
,000
94
,000
45
,000
4 35
,000
96
,000
76
,000
5 57
,000
11
4,00
0 62
,000
over
5
48,0
00
97,0
00
81,0
00*
Insu
ffici
ent
num
ber
of r
eplie
s fo
r se
para
te c
lass
ifica
tion.
21
Net
Inco
me
by N
umbe
r of P
artn
ers
Exhi
bit V
II (
cont
inue
d)Be
fore
Par
tner
s’ Sa
lari
es, D
raw
ings
, and
Fed
eral
Inco
me
Tax
(sm
all
firm
s)
Regi
on
Low
H
igh
Med
ian
SOU
THW
EST
Num
ber
of P
artn
ers
1 $
5,00
0 $
93,0
00
$ 17
,000
2 11
,000
78
,000
28
,000
3 20
,000
10
3,00
0 55
,000
4 57
,000
95
,000
76
,000
5 12
,000
97
,000
67
,000
over
5
* *
*
FAR
WE
STN
umbe
r of
Par
tner
s1
$ 3,
000
$ 53
,000
$
17,0
002
6,00
0 89
,000
33
,000
3 22
,000
96
,000
65
,000
4 49
,000
15
4,00
0 66
,000
5 11
3,00
0 11
9,00
0ov
er 5
*
* In
suffi
cien
t nu
mbe
r of
rep
lies
for
sepa
rate
cla
ssifi
catio
n.
22
Net
Inco
me
by N
umbe
r of
Par
tner
s Ex
hibi
t VII
IBe
fore
Par
tner
s’ Sa
lari
es, D
raw
ings
, and
Fed
eral
Inco
me
Tax
(med
ium
firm
s)
Regi
on
Low
H
igh
Med
ian
NE
W E
NG
LAN
DN
umbe
r of
Par
tner
s1
$
* $
* $
*2
* *
*3
* *
*4
*( *
*5
* *
*6
ft ft
*7
* *
ft8
ft *
*
over
8
* *
*M
IDD
LE A
TLA
NTI
CN
umbe
r of
Par
tner
sft
ft *
2 *
* *
3 60
,000
15
2,00
0 72
,000
4 66
,000
18
3,00
0 96
,000
5 86
,000
21
2,00
0 11
8,00
06
* *
*7
* *
*8
69,0
00
317,
000
253,
000
over
8
* *
**
Insu
ffici
ent
num
ber
of r
eplie
s fo
r se
para
te c
lass
ifica
tion.
23
Net
Inco
me
by N
umbe
r of
Par
tner
s Ex
hibi
t VII
I (c
ontin
ued)
Befo
re P
artn
ers’
Sala
ries
, Dra
win
gs, a
nd F
eder
al In
com
e Tax
(med
ium
firm
s)
Regi
on
Low
H
igh
Med
ian
SOU
THEA
STN
umbe
r of
Par
tner
s1
$ *
$ *
$ *
2 *
* *
3 *
* *
4 72
,000
94
,000
81
,000
5 *
* *
6 10
3,00
0 16
9,00
0 12
0,00
07
* *
*8
* *
over
8
* *
*
CEN
TRA
LN
umbe
r of
Par
tner
s*
2 54
,000
12
5,00
0 96
,000
3 68
,000
13
2,00
0 81
,000
4 69
,000
20
0,00
0 96
,000
5 92
,000
26
5,00
0 10
4,00
06
119,
000
197,
000
138,
000
7 12
2,00
0 14
3,00
0 13
9,00
08
148,
000
231,
000
161,
000
over
8
*
24
Regi
on
Low
H
igh
Med
ian
NO
RTH
WES
TN
umbe
r of
Par
tner
s1
$ *
$ *
$ *
2 *
* *
3 *
* *
4 *
* *
5 *
* *
6 *
* *
7 *
* *
8 *
over
8
* *
*
SOU
THW
EST
Num
ber
of P
artn
ers
1 *
* *
2 *
* *
3 *
* *
4 80
,000
15
8,00
0 12
6,00
05
* *
*6
* *
*7
* *
*8
* *
*ov
er 8
*
* *
* In
suffi
cien
t nu
mbe
r of
rep
lies
for
sepa
rate
cla
ssifi
catio
n.
25
Low
H
igh
Med
ian
$ *
$ *
$ *
* *
*15
,000
11
7,00
0 74
,000
40,0
00
168,
000
143,
000
* *
**
* *
* *
**
* *
* *
*
Net
Inco
me
by N
umbe
r of
Par
tner
s Ex
hibi
t VII
I (c
ontin
ued)
Befo
re P
artn
ers’
Sala
ries
, Dra
win
gs, a
nd F
eder
al In
com
e Tax
(m
ediu
m f
irm
s)R
egio
n
FAR
WE
STN
umbe
r of
Par
tner
s
2 3 4 5 6 7 8 over
8
* In
suffi
cien
t nu
mbe
r of
rep
lies
for
sepa
rate
cla
ssifi
catio
n.
26
Net
Inco
me
Befo
re P
artn
ers’
Sala
ries
, Ex
hibi
t IX
Dra
win
gs, a
nd F
eder
al In
com
e Tax
†(b
y re
gion
and
siz
e of
met
ropo
litan
are
a)
Size
of
Regi
on
Met
ropo
litan
Are
a In
divi
dual
Sm
all
Med
ium
La
rge
new
En
gla
nd
U
nder
— 2
5,00
0 $1
4,00
0 $4
6,00
0 $
* $
*25
,000
- 50
,000
*
18,0
0050
,000
-100
,000
*
25,0
0010
0,00
0-50
0,00
0 11
,000
28
,000
Ove
r—50
0,00
0 13
,000
34
,000
*
over
199
,000
mid
dle
Atl
an
tic
Und
er—
25,
000
14,0
00
20,0
00
* *
25,0
00-
50,0
00
15,0
00
28,0
0050
,000
-100
,000
12
,000
32
,000
100,
000-
500,
000
9,00
0 27
,000
11
1,00
0O
ver—
500,
000
11,0
00
34,0
00
112,
000
over
199
,000
sou
thea
st
Und
er—
25,
000
10,0
00
18,0
00
* *
25,0
00-
50,0
00
17,0
00
27,0
00
*50
,000
-100
,000
11
,000
31
,000
61
,000
100,
000-
500,
000
11,0
00
31,0
00
110,
000
Ove
r—50
0,00
0 8,
000
27,0
00
* ov
er 1
99,0
00
* In
suffi
cien
t num
ber
of r
eplie
s fo
r se
para
te c
lass
ifica
tion.
† The
figu
res
in th
is Ex
hibi
t ar
e m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
27
Net
Inco
me
Befo
re P
artn
ers’
Sala
ries
, Ex
hibi
t IX
(co
ntin
ued)
Dra
win
gs, a
nd F
eder
al In
com
e Tax
†(b
y re
gion
and
siz
e of
met
ropo
litan
are
a)
Size
of
Regi
on
Met
ropo
litan
Are
a In
divi
dual
Sm
all
Med
ium
La
rge
cen
tra
l U
nder
— 2
5,00
0 $1
3,00
0 $2
1,00
0 $
* $
*25
,000
- 50
,000
10
,000
31
,000
*
*50
,000
-100
,000
10
,000
42
,000
*
100,
000-
500,
000
12,0
00
34,0
00
115,
000
*O
ver—
500,
000
11,0
00
36,0
00
125,
000
over
199
,000
no
rth
wes
t U
nder
— 2
5,00
0 11
,000
18
,000
*
*25
,000
- 50
,000
*
34,0
00
* *
50,0
00-1
00,0
00
11,0
00
23,0
00
* *
100,
000-
500,
000
11,0
00
29,0
00
124,
000
*O
ver—
500,
000
* 34
,000
*
*
* In
suffi
cien
t num
ber
of re
plie
s for
sep
arat
e cl
assif
icat
ion.
† The
figu
res
in th
is E
xhib
it ar
e m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
28
Net
Inco
me
Befo
re P
artn
ers’
Sala
ries
, Ex
hibi
t IX
(co
ntin
ued)
Dra
win
gs, a
nd F
eder
al In
com
e Ta
x†(b
y re
gion
and
siz
e of
met
ropo
litan
are
a)
Size
of
Regi
on
Met
ropo
litan
Are
a In
divi
dual
Sm
all
Med
ium
La
rge
sou
thw
est
Und
er—
25,
000
$12,
000
$32,
000
$ *
$ *
25,0
00-
50,0
00
12,0
00
25,0
00
* *
50,0
00-1
00,0
00
16,0
00
42,0
00
*10
0,00
0-50
0,00
0 11
,000
21
,000
*
Ove
r—50
0,00
0 12
,000
29
,000
12
6,00
0 ov
er
199,
000
far
wes
t U
nder
— 2
5,00
0 11
,000
27
,000
*
*25
,000
- 50
,000
10
,000
19
,000
*
50,0
00-1
00,0
00
16,0
00
33,0
00
* *
100,
000-
500,
000
9,00
0 29
,000
Ove
r—50
0,00
0 10
,000
30
,000
15
5,00
0 ov
er 1
99,0
00
* In
suffi
cien
t num
ber
of re
plie
s fo
r se
para
te c
lass
ifica
tion.
† The
figu
res
in th
is E
xhib
it ar
e m
edia
ns. S
ee p
age
7 fo
r ex
plan
atio
n.
29
Usu
al B
illin
g R
ates
Per
Hou
r Ex
hibi
t X(b
y cl
ass
of s
taff
and
regi
on)
Regi
on
Cla
ss o
f St
aff
Low
H
igh
Med
ian
new
En
gla
nd
Ju
nior
s Le
ss t
han
$5.0
0 $1
0—15
$
5.00
— 7
.50
Sem
i-sen
iors
Le
ss t
han
5.00
10
—15
7.
50—
10.0
0Se
nior
s 5.
00-
7.50
15
-20
10.0
0-15
.00
Supe
rvis
ors
7.50
—10
.00
20—
25
10.0
0—15
.00
Prin
cipa
ls
7.50
—10
.00
over
25
10.0
0—15
.00
Partn
ers
5.00
— 7
.50
over
25
10.0
0—15
.00
mid
dle
Atl
an
tic
Juni
ors
Less
tha
n $5
.00
$20—
25
$ 5.
00—
7.5
0Se
mi-s
enio
rs
Less
tha
n 5.
00
over
25
7.50
—10
.00
Seni
ors
Less
tha
n 5.
00
over
25
10.0
0—15
.00
Supe
rvis
ors
5.00
— 7
.50
20—
25
10.0
0—15
.00
Prin
cipa
ls
5.00
— 7
.50
over
25
10.0
0—15
.00
Partn
ers
5.00
— 7
.50
over
25
15.0
0—20
.00
sou
thea
st
Juni
ors
Less
tha
n $5
.00
$10—
15
$ 5.
00—
7.5
0Se
mi-s
enio
rs
Less
tha
n $5
.00
15—
20
7.50
—10
.00
Seni
ors
5.00
- 7.
50
15-2
0 7.
50-1
0.00
Supe
rvis
ors
5.00
— 7
.50
20—
25
10.0
0—15
.00
Prin
cipa
ls
5.00
— 7
.50
over
25
10.0
0—15
.00
Partn
ers
5.00
— 7
.50
over
25
10.0
0—15
.00
30
Usu
al B
illin
g Ba
tes P
er H
our
Exhi
bit X
(co
ntin
ued)
(by
clas
s of
sta
ff a
nd re
gion
)
Regi
on
Cla
ss o
f St
aff
Low
H
igh
Med
ian
cen
tra
l Ju
nior
s Le
ss t
han
$5.0
0 $1
0—15
$
5.00
— 7
.50
Sem
i-sen
iors
Le
ss t
han
5.00
10
—15
7.
50—
10.0
0Se
nior
s Le
ss t
han
5.00
15
—20
7.
50—
10.0
0Su
perv
isor
s 5.
00—
7.5
0 20
—25
10
.00—
15.0
0Pr
inci
pals
5.
00—
7.5
0 ov
er 2
5 10
.00—
15.0
0Pa
rtner
s 5.
00—
7.5
0 ov
er 2
5 10
.00—
15.0
0
no
rth
wes
t Ju
nior
s Le
ss t
han
$5.0
0 $1
0—15
$5
.00—
7.5
0Se
mi-s
enio
rs
5.00
— 7
.50
10—
15
7.50
—10
.00
Seni
ors
5.00
- 7.
50
15-2
0 7.
50-1
0.00
Supe
rvis
ors
5.00
— 7
.50
20—
25
10.0
0—15
.00
Prin
cipa
ls
5.00
— 7
.50
over
25
10.0
0—15
.00
Partn
ers
5.00
— 7
.50
over
25
10.0
0—15
.00
sou
thw
est
Juni
ors
Less
tha
n $5
.00
$10—
15
$5.0
0— 7
.50
Sem
i-sen
iors
Le
ss t
han
5.00
10
—15
7.
50—
10.0
0Se
nior
s 5.
00-
7.50
15
-20
7.50
-10.
00Su
perv
isor
s 7.
50—
10.0
0 20
—25
10
.00—
15.0
0Pr
inci
pals
5.
00—
7.5
0 ov
er 2
5 10
.00—
15.0
0Pa
rtner
s 5.
00-
7.50
ov
er 2
5 10
.00-
15.0
0
31
Usu
al B
illin
g R
ates
Per
Hou
r Ex
hibi
t X (
cont
inue
d)(b
y cl
ass
of s
taff
and
regi
on)
Regi
on
Cla
ss o
f Sta
ff Lo
w
Hig
h M
edia
n
far
wes
t Ju
nior
s Le
ss t
han
$5.0
0 $1
0—15
$5
.00—
7.5
0Se
mi-s
enio
rs
Less
tha
n $5
.00
15—
20
7.50
—10
.00
Seni
ors
5.00
- 7.
50
20-2
5 10
.00-
15.0
0Su
perv
isor
s 7.
50—
10.0
0 20
—25
10
.00—
15.0
0Pr
inci
pals
7.
50-1
0.00
ov
er 2
5 10
.00-
15.0
0Pa
rtner
s 5.
00-
7.50
ov
er 2
5 15
.00-
20.0
0
32
Usu
al M
etho
d of
Det
erm
inin
g Ex
hibi
t XI
Hou
rly
Billi
ng R
ates
(by
size
of
firm
)
Met
hod
Indi
vidu
al
Smal
l M
ediu
m
Larg
e To
tal
Two
times
ann
ual
sala
ry d
ivid
edby
est
imat
ed c
harg
eabl
e ho
urs
98
430
32
10
570
Two
and
a ha
lf tim
es a
nnua
l sal
ary
plus
pay
roll
taxe
s an
d fr
inge
be
nefit
s di
vide
d by
est
imat
ed
tota
l no
rmal
hou
rs p
er y
ear
(coi
ncid
es w
ith p
er d
iem
rat
e of
one
per c
ent o
f ann
ual s
alar
y)
46
355
25
6 43
2
Thre
e tim
es h
ourly
bas
e sa
lary
ra
te (
excl
usiv
e of
bon
us o
rov
ertim
e pa
ymen
ts)
51
189
11
2 25
3
Oth
er
179
355
21
18
573
374
1,32
9 89
36
1,
828
33
Ave
rage
Bill
ings
Ex
hibi
t XII
Per
Pers
on P
er Y
ear
(by
size
of f
irm)
Am
ount
In
divi
dual
Sm
all
Med
ium
La
rge
Less
tha
n 10
,000
12
7 32
2 9
-10
,000
-12,
000
98
418
19
212
,000
-13,
000
30
168
22
513
,000
-14,
000
19
118
14
114
,000
-15,
000
26
126
16
415
,000
-16,
000
22
77
5 10
16,0
00-1
7,00
0 13
37
7
417
,000
-18,
000
8 24
3
3ov
er-1
8,00
0 67
63
-
2
410
1,35
3 95
31
34
