The average profit of a partner in an Accounting firm in Australia is $293,080. Profits per partner declined by 8% last year. It’s OK but not great. A partner can carve out a reasonable lifestyle on $300k. Some are making more, some less.
I think for how smart partners of accounting firms are and how much risk they take I think they are underpaid. They should be making more than $1M per year. With the right decisions, a finely tuned business vehicle and correct implementation it is entirely doable. We’re helping firms every day to get to >$1M per partner. Below is simple model of what a million dollar profit per parnter firm might look like:
But you have to want it. There must be a desire to change and create wealth.
The reality is that it is far too comfortable in the Accounting profession. The government dictates a range of statutory services you must offer, clients are very loyal because of ‘financial intimacy’ and there is a never ending demand from clients for additional services. Good gig. And that’s the issue – it’s too easy to make money as an Accountant.
To create a different result you must first have a burning desire. You will only change because you want to fix something or achieve something. You have to be hungry.
You also need the right strategy. The strategy must be documented, well thought out and realistic.
This Thursday (July 25) at 12 noon I am running a free webinar on developing a winning strategy for accountants. If you are interested in getting a different result then I invite you to invest an hour of your time learning how to develop a winning strategy.