1. THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com Benchmarking CPA Firm Performance Presented by Marc Rosenberg, CPA

2. THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com The Rosenberg Associates Marc Rosenberg, CPA, President 23 years consulting to CPA firms Consultant, author and speaker to CPAs 700 client firms from coast to coast Top 100 Most Influential People in Actg Profession – Accounting Today - 7 consecutive years - 7 consecutive years Named one of the most recommended CPA firm consultants by INSIDE Public Accounting

3. Rosenberg is active with CPA firms: Facilitate retreats Facilitate retreats Partner compensation & retirement Partner compensation & retirement Succession planning Succession planning Mergers Mergers Strategic planning Strategic planning Practice management reviews Practice management reviews Partner relations and conflict Partner relations and conflict Upward evaluation surveys Upward evaluation surveys THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

4. The Rosenberg Associates The Rosenberg MAP Survey – Accounting Today says it’s “generally accepted as the barometer for CPA firm practice management.” The Rosenberg MAP Survey – Accounting Today says it’s “generally accepted as the barometer for CPA firm practice management.” The Management Catalyst – quarterly newsletter sent to 3,000 CPA firms nationwide, free of charge The Management Catalyst – quarterly newsletter sent to 3,000 CPA firms nationwide, free of charge THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

5. The Rosenberg Associates 1000 Skokie Blvd. Suite 555 Wilmette, IL 60091 Phone: 847-251-7100 Fax: 847-251-4622 marc@rosenbergassoc.com THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

6. Definition: FTEs (2000 hours is a normal year) FTE FTE 1000 hours a year: 0.5 1600 hours a year: 0.8 2800 hours a year: 1.0 -one person can never > 1.0 FTE) -one person can never > 1.0 FTE) THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

7. Other Definitions Partner income and IPP Partner income and IPP Total work hours Total work hours Equity vs. non-equity partners Equity vs. non-equity partners Fees & profits from separate entities Fees & profits from separate entities Cash vs. accrual basis Cash vs. accrual basis

8. Benchmarking In Our World Baseball hitterHigh School GradEconomy Home runs Runs batted in Batting average On base pct SAT ACT GPA Activities Growth rate Inflation Dow Jones Unemployment THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

9. Why CPA firms benchmark: To Make More Money! To understand and analyze performance by having something to compare to To understand and analyze performance by having something to compare to To identify areas where things are going well To identify areas where things are going well To identify areas needing improvement To identify areas needing improvement THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

10. The 3 steps of benchmarking 1. Measuring 2. Analyzing 3. Changing THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

11. Our Process 1. Sweet spot: 308 firms $10M 2. 84% repeat rate 3. On-line input; easy, short input form 4. 3 CPAs review data 5. 40% error rate; we contact firms for better data 6. We compute all ratios 7. 40 page narrative analysis by Rosenberg 8. Data sorts – firm size, market size, geog. region 9. Every participant gets a 1 page custom report 10. Row-by-row data - ALL FIRMS – over 100 metrics 11. Release date Sept 10 – earliest of all public surveys THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

12. Demographics: Fee Size of Firms 40firms over $20 million in fees 40firms over $20 million in fees 77 firms $10 – 20 million in fees 77 firms $10 – 20 million in fees 243firms $2 – 10 million in fees 243firms $2 – 10 million in fees 42firms under $2 million 42firms under $2 million 23firms – solos 23firms – solos 425 firms in all – the most ever! 425 firms in all – the most ever! 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

13. Demographics: Population Size of Market 198 firms – population > 2 million 70 firms – population 1 to 2 million 70 firms – population 1 to 2 million 98 firms – population 250K to 1 million 98 firms – population 250K to 1 million 59 firms – under 250,000 59 firms – under 250,000 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

14. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

15. Actual 2009 Growth Rates Multi-Partner Firms >$20M10-20M2-10M<2MAll Overall growth rates 3.7%-0.3%1.5%-1.4%1.4% Ranges of growth rates: Over 7.5% Over 7.5%23%12%20%11%17% 5 to 7.5% 5 to 7.5%22%8%10%9%11% 2.5 to 4.9% 2.5 to 4.9%3%10%14%14%12% 0 to 2.4% 0 to 2.4%7%21%19%18%18% Negative growth <10% Negative growth <10%40%43%28%30%32% Negative growth >10% Negative growth >10%5%6%9%18%9% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

16. Definition of Partner An owner An owner Only includes equity partners Only includes equity partners EXCLUDES non-equity partners EXCLUDES non-equity partners

17. Growth rate plummets; Profits only off slightly 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

18. Summary of 2009 Tough year; FLAT proved to be up Tough year; FLAT proved to be up 41% of all firms lost revenue 41% of all firms lost revenue No fee growth, but profits only down 3% No fee growth, but profits only down 3% Cost monitoring and deferral, especially in IT Cost monitoring and deferral, especially in IT Layoffs and furloughs Layoffs and furloughs Little or no staff raises Little or no staff raises Goodbye “work-life balance” ; hello “glad to have a job” Goodbye “work-life balance” ; hello “glad to have a job” First time in 15 years – staff available First time in 15 years – staff available Some hiring as marginals weeded out Some hiring as marginals weeded out Pricing competition; fee pressure Pricing competition; fee pressure Collection slowdown; clients  BK Collection slowdown; clients  BK Chargeability down Chargeability down 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

19. Projected 2010 Growth Rates Multi-Partner Firms >$20M10-20M2-10M <2MAll Overall Projected3.2%3.1%2.3%2.8%2.6% Ranges of growth rates: Over 7.5%13%12%13%25%14% 5 to 7.5%18%27%22%23% 2.5 to 4.9%28%21%17%7%18% 0 to 2.4%31%27%28%20%27% Negative growth <10%10%12%17%20%16% Negative growth >10%01%3%5%2% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

20. Outlook for 2010 1. 2.6% growth; recovery slow and guarded 2. Marketing! Marketing! Marketing! 3. Closer look at partner performance & accountability 4. Pricing pressure continues; unprecedented low-balling 5. Minimal staff raises 6. Staff available – 1 st time in 15 years 7. Regional firms very active in mergers, especially outside their traditional boundaries 8. Addressing inefficiencies & excesses 9. Lean and mean 10. Many dominant and/or founding MPs retiring 11. Succession planning crisis hasn’t gone away. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

21. Tactics and Strategies for Recession 1. Marketing! Marketing! Marketing! 2. Spend more time with existing clients 3. Improve processes, efficiency 4. Closer look at partner performance & accountability 5. Link partner comp to performance 6. Keep fee increases minimal 7. Watch WIP and receivables; minimize risk 8. Upgrade staff 9. IT deferrals now being implemented 10. Lean and mean 11. New MPs leapfrogging a generation 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

22. Top 10 Findings 10. Pct. female partners in MW & NE a shocking 11%; elsewhere it’s 20%. 9. New partner buy-ins creeping up; now at $141K vs. $127K last year. 8. Partner billable hours down across the board. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

23. Top 10 Findings 7. Partners continue to age: percent of partners over 50 now 59%, up from 58% last year and up from 52% in 2005. 6. An amazing 87 firms or 27% of the firms in our survey DO NOT have a partner buyout plan. 5. CPA firms continue to see the light regarding partner compensation methods; more compensation committees…fewer formulas. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

24. Top 10 Findings 4. Big jump up in use of non-equity partners: 46% this year vs. 38% last year. 3. Staff charge hours fell through the floor, averaging only 1,471, almost 50 hours a person lower than last year. 2. Despite a flat year caused by the recession, income per partner was only down 3%. Firms trimmed staff and cut costs to preserve their profit level. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

25. Top 10 Findings 1. Last year, firms were saying “flat is up.” They got their wish. Revenues were up a scant 1.4%.Revenues were up a scant 1.4%. Worst year for growth in 2 decadesWorst year for growth in 2 decades 41% of all firms had revenue declines.41% of all firms had revenue declines. 2010 is expected to slowly recover; firms are projecting a 3% increase in revenues; only 18% of firms are expecting further revenue declines. 2010 is expected to slowly recover; firms are projecting a 3% increase in revenues; only 18% of firms are expecting further revenue declines. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

26. One thing to remember about MAP surveys: The statistics are averages only. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

27. The Rosenberg MAP Survey 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

28. Watch for MVP Slides MVP

29. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com Annual Billable Hours for Prostaff (Firms over $2 Million) MVP

30. Increase staff charge hrs by: Increase staff charge hrs by: 1. Clarifying expectations…budgets 2. Staff looks for work 3. Creating staff scheduling systems 4. Partners delegating 5. Partners keeping staff busy 6. Culture of recording ALL time 7. Change orders 8. Training and performance feedback 9. Daily timesheets 2010 Rosenberg Survey ROS ENBERG ASSOCIATES LTD. www.rosenbergassoc.com MVP

31. 4 Year Trends: Partner Charge Hours 2009200820072006 Over $20M1,0471,0551,116 $10-20M1,0991,1151,1551,149 $2-10M1,1421,1891,2251,233 Under $2M1,1731,2711,2261,236 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

32. Partner Charge Hours and Profitability (Over $2M Group) Ptr Charge HrsNumber of FirmsIPP 2009IPP 2008 >17009506,000396,000 1600s5366,000573,000 1500s14476,000373,000 1400s18378,000391,000 1300s32414,000346,000 1200s49389,000359,000 1100s58330,000361,000 1000s61313,000369,000 900s58322,000341,000 <90058332,000368,000 Overall Avg362354,000366,000 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

33. Partner Charge Hours and Profitability (Over $10M Group) Ptr Charge HrsNumber of FirmsIPP 2009IPP 2008 1300-150014471,000 1200s13455,000 1100s24426,000 1000s23420,000 <100042423,000 Overall Avg116435,000472,000 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

34. 4 Year Trends: Realization 2009200820072006 Over $20M80.4%80.0% 83.5%84.9% $10-20M82.8%84.0% $2-10M86.9%87.1%88.9%89.4% Under $2M91.0%87.9%89.2%88.3% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com % of hours worked on clients that are actually billed

35. How To Increase Realization 1. Game plan for reducing historical write-offs. 2. Monitor jobs; too late if you wait until the end. 3. Change order mentality. 4. Staff never accepts a job w/o time budget. 5. Set fees aggressively; “look in eyes.” 6. Advance payments, interim and prompt billing. 7. Cull through unprofitable clients. 8. Management challenges write-offs. 9. Staff drafts the bills. 10. World class service usually trumps high fees. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

36. 4 Year Trends: Payments to Retirees Payments as a % of Fees 2009200820072006 Over $20M1.0%0.9% 1.1%1.0% $10-20M1.2%1.4% $2-10M1.0%1.1% 1.3% Under $2M0.6%0.5%0.7%0.5% Over $20M73% of firms making buyout payments $10-20M69% $2-10M48% Under $2M15% All Firms51% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

37. 4 Year Trends: Percentage Female Partners 2009200820072006 Over $20M15.7%13.6% 15.1%14.3% $10-20M16.4%17.0% $2-10M14.7%14.1%13.8%13.9% Under $2M10.5%11.9%10.5%11.5% All firms14.7%14.3%13.7%13.6% Midwest & Northeast 11% West & South 20% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

38. Upper 25% Partner Billing Rate Middle 50%Lower 25% Population No. Of Firms Average Partner Billing Rate IPP Average Partner Billing Rate IPP Average Partner Billing Rate IPP >2M184399464,241302365,500253322,362 1-2M68346408,972263308,789195234,367 250K-1M92303377,666242314,443187274,279 <250K57288346,918215255,549154253,674 The Power of Billing Rates 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com MVP

39. Billing rates in general Question: What’s the single biggest problem in CPA firm profitability? Answer: Wimpy billing rates 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

40. Billing rates in general Billing rates in general Question: What do you want your clients to say about you? Answer: “They’re expensive, but they’re good!” 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

41. Which statistics correlate the most with firm profitability? 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

42. How 10 MAP statistics Correlate to Income Per Partner Rank 2009 Rank 2008 Metric 11Fees per partner Rates and leverage 22Fees per person 33Ratio of professional staff to partner 44Partner billing rate 59Partner billable hours 66Utilization percentage 77Staff billable hours 88Realization percentage 95Total partner work hours 10 Ratio of admin to total personnel 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com MVP

43. THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com High fees per partner results from: High fees per partner results from: 1. Partners are “account managers” 2. Good staff to delegate TO 3. Good at bringing in business 4. Good mix of large & small clients 5. Partners avoid admin like the plague 6. High standards-who makes partner 7. Aggressive billing rates 8. Low write-offs MVP 2010 Rosenberg MAP Survey

44. Elite Firms (54 firms with IPP>500K) Elite Firms 2009(08)$10-20M Firm Group Averages $2-10M Firm Group Averages Net fees 14,081,00014,056,0005,119,000 Income per partner 632K (642K) 403,000324,000 Staff to partner ratio 7.7 (7.5) 5.64.7 Partner charge hours 1,251 (1,181) 1,0991,142 Staff charge hours 1,511 (1,548) 1,4831,471 Partner billing rate 324 (329) 308263 Fees per partner 1,886,0001,319,0001,042,000 Fees per person 186,000162,000151,000 Revenue growth-2009 +2.6%(+11.7%) -0.3%+1.5% Rev. growth-proj 2010 +2.8%+3.1%+2.3% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

45. Bigger is Better 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com MVP

46. Bigger firms: 1. Develop strategic plans & goals 2. Hire COOs and firm administrators 3. Get serious about training 4. Formalize their marketing 5. Specialize 6. Hold partners accountable for helping staff grow 7. Have staff scheduling systems 2010 Rosenberg Survey ROS ENBERG ASSOCIATES LTD. www.rosenbergassoc.com MVP

47. Tax season compression holds back profitability. % of annual billable hours worked in tax season Average Staff Hours Income Per Partner Highest 25% 54%1,429332,000 Middle 50% 47%1,466353,000 Lowest 25% 39%1,504387,000 All Firms All Firms46%1,467356,000 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

48. Firms with higher billing rates have higher write-offs, so they net the same as firms with lower rates. Right? 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

49. Firms with higher billing rates have higher write-offs, so they net the same as firms with lower rates. Right? Right? WRONG 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

50. Yes. Firms with higher standard rates have higher write-offs, but they still net more. QuartileStandard Partner Rates RealizationNetRealizableRate Upper 25% 37483.1%311 Mid 50% 27884.8%236 Lower 25% 20388.9%181 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

51. 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com Correlation of Staff-Partner Ratio To Profitability MVP

52. Partner Compensation Systems 2Ptrs3-4Ptrs5-7Ptrs 8-12 Ptrs 13+ Ptrs 2009Total2008Total Comp Committee 5%10%25%49%73%32%29% Formula20%41%38%28%14%31%33% Paper & Pencil 0%3%5%1%3%3% Ownership Pct 5%7%4%3%2%4%5% MP Decides 18%11%11%12%3%11%8% Pay Equal 30%8%4%3%2%7%9% All Decide 22%20%13%4%3%12%13% Open93%83%81%69%50%75% Closed7%17%19%31%50%25% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

53. Managing Partners’ Data Annual Fees Over $20M $10-20M$2-10M Annual bill hrs-all partners1,0471,0991,142 Annual bill hrs for MPs398723995 % of MPs with client base >$500K53%85%88% Managing partner compensation: -MP higher than or equal to highest paid partner 58%45%62% -MP up to 10% lower than highest paid partner 14%26%15% -MP more than 10% lower than highest paid ptr 28%29%23% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

54. THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com Partner Compensation Nothing more unequal than the equal treatment of unequal people. (Thomas Jefferson) Ratio of highest to lowest paid partner:  Over $20M group4.4  $10 - 20M group2.6  $2 - 10M group2.0  Under $2M group1.4 2010 Rosenberg MAP Survey

55. Partner Retirement Systems 2-4 Ptrs 5-7 Ptrs 8-12 Ptrs 13+ Ptrs All -2009 2008 Multiple of comp 27%46%51%56%43%41% Book of business 17%11%4%2%10%13% Owner Pct. 31%19%14%16%21%21% AAV15%14%22%16%16%17% Fixed8%10%8%8%9%8% Equal2%0%1%2%1%0% No provision 26% (44 firms) 25% (22 firms) 9% (6 firms) 20% (13 firms) 21% (85 firms)22% (73 firms) 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

56. THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com Multiple Used To Value Internal Partner Buyouts 2-4 Ptrs 5-7 Ptrs 8-12 Ptrs 13+ Ptrs All Firms >100%6%4%3%12%6% 100%20%20%21%26%21% 90-99%4%1%4%7%4% 75-89%34%34%34%17%32% 50-74%25%28%29%24%26% <50%11%13%9%14%11% 2010 Rosenberg MAP Survey Overall Valuation Percentages (as % of Fees) Over $20M $10-20M $2-10MUnder $2MAll Firms 2009 82.5%75.4%77.6%82.5%78.1% 2008 76.6%79.6%83.3%79.1%

57. Do firms reduce retirement payments if clients leave after the partner retires? Yes – 19% No – 81% % yes: - Over $20M 5% - $10-20M13% - $2-10M22% - Under $2M24% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

58. New Partners Compensation: >$20M$206,000 >$20M$206,000 >$10-20M$180,000 >$10-20M$180,000 $2-10M $139,000 $2-10M $139,000 < $2M $103,000 < $2M $103,000Buy-in: Very narrow band for all size firms Very narrow band for all size firms Range: $120,000 to 156,000 Range: $120,000 to 156,000 Overall average: $141,000 Overall average: $141,000 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

59. The aging of CPA firm partners (For all multi-partner firms) Pct. of Partners Over Age 50 >20M10-20M2-10M<2MAll 200955.7%56.3%59.7%61.5%58.8% 200852.6%55.5%59.5%58.5%58.0% 200749.7%58.6%59.4%56.6% 200650.0%54.7%55.7%53.9% 200547.0%52.0%53.3%51.5% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

60. Malpractice premiums 2009-0.9% 2008No change 2007+ 0.7% 2006- 1.9% 2005+ 4.3% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

61. Mandatory Retirement Average retirement age is a solid 65 at all firm sizes Size RangePct With Mandatory Retirement Over $20M group82% $10-20M group75% $2-10M group50% Under $2M group21% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

62. Non-Equity Partners >$20M > $10-20M $2-10M < $2M All % of firms with NE partners 68%74%60%10%46% Last year 69%58%33%5%38% 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com MVP 1. Keep the bar high. Looking for PD & leadership. 2.Partner in training. 3.Client retention technique. 4.Treated like a partner but legally, a W-2. 5.No buy-in, buyout, partner agreement, etc., …EXCEPT… 6.Sign non-solicitation agreement.

63. Results by Size Grouping >$20M$10-20M$2-10M<$2M Income per partner448,277402,592323,523214,220 Fees per partner1,802,1541,319,3231,042,199574,131 Fees per person167,815161,551150,973139,749 Billable hrs-partners1,0471,0991,1421,173 Billable hrs-staff1,4081,4831,4711,511 Realization80.4%82.8%86.9%91.0% Partner billing rate356308263217 Ratio – staff to ptr7.95.64.72.4 Admin to total pct19.3%19.7%19.0%19.6% Overhead exp/person41,18435,06735,95035,665 THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com 2010 Rosenberg MAP Survey

64. Results by Size Grouping >$20M$10-20M$2-10M<$2M Written performance review for partners 67.5%55.8%35.0%11.9% Upward evals of ptrs 62.5%53.2%37.4%22.0% % female partners 15.7%16.4%14.7%10.5% % casual dress code 80.0%75.3%64.0%57.1% Pct of partners >50 55.7%56.3%59.7%61.5% THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com 2010 Rosenberg MAP Survey

65. Results by Size of Market POPULATION OF METRO MARKET Over 2M1-2M250K-1M<250K Income per partner371,608310,112323,769273,634 Fees per partner1,259,2101,015,4761,061,085833,920 Fees per person170,201144,974140,402131,985 Billable hrs-partners1,1131,1041,1581,236 Billable hrs-staff1,4641,4491,5091,475 Realization85.8%84.4%86.4%89.8% Partner billing rate309264244216 Ratio – staff to ptr5.14.75.24.3 Admin to total pct19.6%18.6%19.7%17.9% Overhead exp/person41,47933,02531,86331,974 THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com 2010 Rosenberg MAP Survey

66. Results by Geographic Region GEOGRAPHIC REGION MidwestNortheastSouthWest Income per partner305,740364,620352,223339,012 Fees per partner924,7421,204,5091,197,6021,216,924 Fees per person154,038162,812143,892158,053 Billable hrs-partners1,1961,1591,1361,035 Billable hrs-staff1,4841,5001,4741,432 Realization88.0%82.5%86.1%87.5% Partner billing rate250298268297 Ratio – staff to ptr4.15.05.85.0 Admin to total pct19.1%19.2%19.1%19.6% Overhead exp/person37,13236,74133,58039,486 2010 Rosenberg MAP Survey THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com

67. Top Strategic Directions More emphasis-marketing and PD More emphasis-marketing and PD More corporate, less partnership style of governance More corporate, less partnership style of governance Tenacious commitment..great place to work Tenacious commitment..great place to work Upgrade staff by tapping into available people Upgrade staff by tapping into available people Leadership development programs Leadership development programs More comp committees…away from formulas More comp committees…away from formulas Mergers sizzling Mergers sizzling Raising bar on equity ptr promotion; more NE ptrs Raising bar on equity ptr promotion; more NE ptrs Renewed focus on fundamental practices/workflow Renewed focus on fundamental practices/workflow More partner accountability More partner accountability New MPs leapfrogging a generation New MPs leapfrogging a generation THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com 2010 Rosenberg MAP Survey MVP

68. ORDER A COPY OF THE 12 TH ANNUAL ROSENBERG SURVEY OF CPA FIRM STATISTICS GO TO: WWW.ROSENBERGSURVEY.COM

69. QUESTIONS? THE ROSENBERG ASSOCIATES LTD. www.rosenbergassoc.com 2010 Rosenberg MAP Survey