IOMA's "2008 CPA Firm Statistical Analysis Reference Handbook" reports that one-in-four CPA firms are expecting revenue growth of more than 10 percent this year, while 44 percent believe revenues will rise 5 percent to 10 percent in 2008.

"Despite the predictions about change in the U.S. economy, CPA firms are well-positioned to thrive because they have honed their management practices with an eye towards greater efficiency," said Susan F. Sandler, editor of the handbook.

In addition to critical management statistics, the annual publication reveals major trends in CPA firm practice management. For instance, CPA firms are taking advantage of healthy growth to raise fees -- a trend that will continue in 2008. CPA firms are also continuing to explore alternative billing and fees, demonstrating a higher comfort level with moving away from the traditional billable hour.

"CPA firms are stepping up and billing what their firms and their expertise are worth," Sandler said. "As firms improve their management practices, they can afford to change fee structures. A related trend: firms are becoming more willing to 'fire' the clients that no longer fit their strategic model. This lets them invest their resources where they want to direct growth."

Human resources issues are moving front and center in practice management, as CPA firms continue to work to staff their growing firms and to retain mid-level CPAs and administration staff. Staffing challenges are encouraging CPA firms to work smarter and more efficiently through technology improvements, and more CPA firms are moving firm administrators and other administration leaders into the executive management ranks, providing administration expertise that frees CPA firm partners to do what they do best.

Recruitment trends reported in the handbook include using internships, flextime, telecommuting, and established relationships with local colleges and universities. About 12 percent of the firms surveyed felt that offering a higher starting salary was a successful hiring tactic. CPA firms reported that flextime, greater involvement of staff in firm operations, more CPE, more social activities, and training in marketing and leadership development were the best methods for improving staff retention.

"CPA Firm Statistical Analysis Reference Handbook 2008" is available at www.ioma.com/cpa.