Section 01
How a CPA Firm Makes Money
Click any line item to drill in.
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Revenue
Fees from client services
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Labor Cost
Salaries, benefits, contractors (50–65% of revenue)
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Overhead
Rent, software, insurance, admin
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Profit
Distributed to equity partners as personal income
The Two Levers
① Revenue Growth
- → Win more clients or expand existing relationships
- → Move up the value chain: compliance → advisory
- → Higher value commands premium pricing
- → Niche specialization reduces price shopping
② Cost Efficiency
- → Higher leverage ratio: more staff per partner
- → Technology replacing low-value hours
- → Fixed-fee pricing replaces write-down risk with scoping risk
Your role: Every growth initiative should connect to one of these two levers. If it doesn't, you'll lose the budget conversation.