Key Indicators Report www.cpatrendlines.com www.baystreetgroup.com CPA Trendlines

CPA Trendlines (Total Employment – Accounting and Bookkeeping Services - 5412)

CPA Trendlines (Accounting degrees awarded – 1971-2007)

CPA Trendlines (Average hourly earnings – production workers – 1990-2007)

CPA Trendlines

CPA Trendlines (AICPA MAP, Jan 2007) Partner compensation up 16 percent, to $185,892/year Partner billing rate up 5 percent, to $168/hour 75.9% of firms have no succession plan 7.2% of firms have partner-in-training programs 0.8% of expenses spent on CPE

Partner compensation up 16 percent, to $185,892/year

Partner billing rate up 5 percent, to $168/hour

75.9% of firms have no succession plan

7.2% of firms have partner-in-training programs

0.8% of expenses spent on CPE

CPA Trendlines Top 10 Hot Niches (Accounting Today Top 100, 2008) Attest services (87%) Business valuations (82%) Estate-trust-gift tax planning (82%) + Forensics/fraud (75%) Litigation support (75%) International tax (72%) Biz. mgt. for wealthy individuals (71%) Industry specializations (70%) Not-for-profits (63%) State and local taxes (63%)

Attest services (87%)

Business valuations (82%)

Estate-trust-gift tax planning (82%) +

Forensics/fraud (75%)

Litigation support (75%)

International tax (72%)

Biz. mgt. for wealthy individuals (71%)

Industry specializations (70%)

Not-for-profits (63%)

State and local taxes (63%)

CPA Trendlines Top 10 Hot Client Sectors (Accounting Today Top 100, 2008) Manufacturing (84%) + Real estate (83%) Nonprofits (79%) Midsized business (75%) + Construction (70%) Pension plans (70%) + Large business (66%) + Wholesale distributors (66%) + Professional services (64%) Individuals (59%) +

Manufacturing (84%) +

Real estate (83%)

Nonprofits (79%)

Midsized business (75%) +

Construction (70%)

Pension plans (70%) +

Large business (66%) +

Wholesale distributors (66%) +

Professional services (64%)

Individuals (59%) +

CPA Trendlines

The Age of the Entrepreneur WW II 1970 TODAY Rate of New Business Formations

Most Trusted Adviser Top 5 Most-Trusted Outside Advisers: Accountant (45%) Family (21%) Attorney (12%) Friend (9%) Clergy (9%)

Top 5 Most-Trusted Outside Advisers:

Accountant (45%)

Family (21%)

Attorney (12%)

Friend (9%)

Clergy (9%)

Thank you Rick Telberg Bay Street Group LLC www.cpatrendlines.com [email_address] (914) 674-4531

Rick Telberg

Bay Street Group LLC

www.cpatrendlines.com

[email_address]

(914) 674-4531