Top 100 Firms - Revenue by Employee
Look beyond the revenue rankings that Accounting Today provides in their Top 100 list and calculate a Revenue Per Employee ratio. This metric is used across industries, but it's especially important for accounting firms because they are selling people's time, which makes people the most important resource.
Revenue per employee can give you interesting insights into a firm's operations. Firms with higher revenue per employee ratios have more resources available to reinvest back into the firm through things like higher compensation and better technology. Lower ratios, on the other hand, could point to potential inefficiencies, unprofitable markets, or low realization engagements.
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