2014 TOP 100 FIRMS ADP

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1 2014 TOP 100 FIRMS ADP Bank of America Practice Solutions CCH, a part of Wolters Kluwer CPA2Biz Inc. CPAmerica International PKF North America SurePayroll Thomson Reuters

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3 notes and methodology SPONSORED BY: One State St. Plaza, 27th Fl., New York, NY Phone: (212) /Fax: (212) Editor-in-Chief Daniel Hood Managing Editor Tamika Cody Senior Editors Roger Russell, Danielle Lee Art Director Javier Samaniego ADVERTISING AND BUSINESS SERVICES Senior Vice President and Group Publisher Rob Whitaker Publisher Jack Lynch (212) Advertising Director Matthew Moore Ad Sales Coordinator Susan Korcynski Material in Accounting Today may not be reproduced without express written permission. For article reprints: Godfrey R. Livermore, Tel: (888) Fax: (212) Publishers Copy Protection Clause: Advertisers and agencies assume liability for all content (including text, representation and illustrations) of advertisments and responsibility for claims arising there from made against the publisher. Copyright 2014 Accounting Today and Source- Media, Inc. All rights reserved. SOURCEMEDIA INC. Tiring, not tiresome While we may sometimes find putting together our annual Top 100 Firms and Regional Leaders lists tiring, we never get tired of the report itself. For one thing, it s constantly new. The last decade has seen tremendous changes in the accounting landscape, with everything from major economic trends to regulation to waves of M&A re-arranging the profession. These changes are reflected in the report in the new firms charging up the ranks and the old firms disappearing through acquisition, in the hiring and promotion patterns, in the movement toward and away from certain niches and client segments, in the growth and decline of parts of the country, and so on and on. While the changes in rankings and the new names on the lists are often the ones that get the most attention, the myriad other details may, in the end, give more valuable insight into the profession. That said, we re always excited to add new T100 Firms, like Ohio s Skoda Minotti, New York s Prager Metis International and Texas Montgomery Coscia Greilich, and the many new Regional Leaders you ll find starting on page 20. And we re always anxious to consider new firms for both lists, so if your firm wasn t represented and you CONTENTS Top 100 Overview 4 Top 100 Databank 5 Firms to Watch 6 Firm Strategies 8 Top Tax Firms 10 Niche Services 12 Client Categories 13 Top 100 Rankings 15 Regional Leaders 20 Firm Highlights 28 think it should be, us at AcToday@SourceMedia.com, and we ll put you on our contact list. For now, though, let s focus on the 2014 Top 100 Firms/Regional Leaders, for which we received responses from over 200 of the biggest and best firms in the nation. As a reminder, here s a quick tutorial on our T100 guidelines: Unless otherwise noted, revenue is net revenue. Also, unless noted, firm revenues and offices are for the U.S. only. The Total Employees category is comprised of partners, professionals and other personnel. Where two firms reported equal revenue, the firm with the higher percentage of revenue increase will receive the higher ranking. MAS stands for management advisory services, or consulting. Of course, a report this mam moth is a team effort, and wouldn t be possible without the hard work of our managing editor Tamika Cody, our senior editors Danielle Lee and Roger Russell, and Mike Cohn, editor of our Web portal AccountingToday.com. With that, it s our pleasure to present the 2014 class of the Top 100 Tax and Accounting Firms and Regional Leaders. As always enjoy! Dan Hood Editor-in-chief 3

4 overview Third time s the charm? BY DANIEL HOOD Things are looking pretty good for this year s Top 100 Firms and Regional Leaders. There we said it. Things are looking pretty good. Not perfect, but pretty good. They face some issues, sure (we ll get into those later), but for the most part, and by most of the measures we include in this report, things are looking up, and moving in the right direction. First off, this year marks the third year of positive overall growth for the T100 since the miserable low points of 2009 and 2010, when their revenues actually shrank. That growth has been relatively consistent around the 8 percent mark (this year s is 7.81 percent), and has also been relatively evenly distributed among the three tiers into which we divide the Top 100. And that s where we find the first of the statistics that make us think that maybe things are just a little bit better than OK. In the top tier of the Top 100, we still have the six firms with revenues of over $1 billion. But in the second tier, of firms with between $100 million and $1 billion, we have 25 firms three more than last year. (See Databank, page 5.) Yes, mergers and acquisitions and inflation played a role in growing that number, but so did the natural expansion of strong firms. And while that only left 69 firms for the third tier with less than $100 million, our Firms to Watch list of upand-comers who are hovering just below the Top 100 matched last year s record 35 members, even as we continued to leave out those that were eligible by revenue, but didn t show growth in (See Firms to Watch, page 6.) There s more: While roughly the same number of T100 Firms reported flat or declining revenues for this year s report as for last year s (10 in 2013, versus 11 in 2012), the number that grew by more than 20 percent jumped to 10, from six the year before, and the number that grew by more than 10 percent was a whopping 37, versus 27 in the prior year. Among our Regional Leaders, too, there were higher rates of growth, with three regions posting double-digit percentage gains, against none in our report Cautiously optimistic Revenue growth of the Top 100 Firms, in percent* * Compiled from individual firm results as reported at year s end; includes some estimates last year. At the same time, though, we should note that there was at least one outlier on the other side, with growth that slowed in 2013 though it didn t decline. (See Regional Leaders, page 20.) That s the kind of thing we mean when we say pretty good a fair number of trends look positive, and then, just when you re starting to feel a little too positive, another, less happy trend will come along and bring you back to earth. Last year, it was the difficulty of scraping out growth in a highly competitive environment. And while our T100 and Regional Leader firms are still pursuing growth in all sorts of niches and with all sorts of clients (see Niches and Clients, page 10), the main trend that s keeping T100 Firm leaders up at night this year is the War for Talent the intense difficulty many are experiencing in finding and retaining qualified staff. While it s true that the number of T100 Firms reporting flat or declining staff numbers was down to 14, from 19 last year, that s likely only because firms have been stepping up their efforts hiring recruiting directors, offering hiring incentives, developing learning and training offerings, and generally going way out of their way to get and keep the staff they ll need to succeed going forward. (See Firm Strategies, page 8.) MOVERS AND SHAKERS While there were no major shake-ups on the lines of the CohnReznick merger in the T100 list this year, there were lots of small moves, and M&A definitely played its role. Long-time Top 100 fixtures Alpern Rosenthal and Holtz Rubenstein Reminick both left the list, merging into BDO USA and Baker Tilly Virchow Krause, respectively. Many other firms got a boost from M&A this year, including Connecticut s BlumShapiro, which jumped 11 spots on the list, and Ohio s Hill, Barth & King, which jumped a whopping 22 spots. Only Pennsylvania s Reinsel Kuntz Lesher managed a double-digit move, up 11 positions from last year. That s not counting the spectacular entrance of Ohio-based Skoda Minotti to the Top 100 at No. 80, with the highest growth rate of any firm on the list (and, it s worth noting, a much higher growth rate than any firm on last year s list). Also See OVERVIEW on 6 4

5 databank 2014 TOP 100 FIRMS DATABANK Overview Top 6 % Firms over % Firms under % Total Top % firms chg. $100 mn chg. $100 mn chg. 100 Firms chg. Revenue (in $mn) $42, $7, $3, $53, Partners 11, , , , Professionals 128, , , , Total employees 168, , , , Rev. share % Rev. share % Rev. share % Rev. share % Fee split (in $mn) of rev. (in $mn) of rev. (in $mn) of rev. (in $mn) of rev. Audit & Attest $15, $3, $1, $20, Tax $10, $2, $1, $14, MAS (consulting) $15, $1, $ $16, Other $1, $ $ $2, Notes: Some figures may not correspond due to rounding. Leaders in A&A Ranked by revenue Rev. share Fee Top 6 firms ($ mn) split 1. PwC 41 4, Deloitte 31 4, Ernst & Young 37 3, KPMG 37 2, McGladrey Grant Thornton Leaders in Tax Ranked by revenue Rev. share Fee Top 6 firms ($ mn) split 1. PwC 28 3, Ernst & Young 30 2, Deloitte 18 2, KPMG 27 1, McGladrey Grant Thornton Leaders in MAS Ranked by revenue Rev. share Fee Top 6 firms ($ mn) split 1. Deloitte 46 6, PwC 31 3, Ernst & Young 26 2, KPMG 36 2, Grant Thornton McGladrey Firms over $100 mn 1. BDO CohnReznick CliftonLarsonAllen BKD Crowe Horwath Firms under $100 mn 1. O Connor Davies Marks Paneth* Kearney & Co Novogradac & Co Friedman Firms over $100 mn 1. BDO CliftonLarsonAllen CohnReznick CBIZ /MHM* Moss Adams Firms under $100 mn 1. Holthouse Carlin & Van Trigt Anchin, Block & Anchin Frank, Rimerman + Co.* MBAF CPAs WithumSmith+Brown Firms over $100 mn 1. Crowe Horwath CBIZ /MHM* Plante Moran Baker Tilly Virchow Krause Dixon Hughes Goodman Firms under $100 mn 1. Sikich Horne Watkins Meegan SC&H Group Inc Kearney & Co Pacesetters in growth Ranked by % chg. Revenue % Firms over $100 mn. ($mn) chg. 1. Carr, Riggs & Ingram Marcum Plante Moran Moss Adams Baker Tilly Virchow Krause Revenue % Firms under $100 mn. ($mn) chg. 1. Skoda Minotti & Co Hill, Barth & King BlumShapiro Sikich The Bonadio Group* Revenue % Overall Top 100 Firms ($mn) chg. 1. Carr, Riggs & Ingram Skoda Minotti & Co Hill, Barth & King BlumShapiro Marcum Sikich Plante Moran The Bonadio Group* Reinsel Kuntz Lesher Frazier & Deeter Whitley Penn O Connor Davies Kaufman Rossin Group Holthouse Carlin & Van Trigt Moss Adams Clark, Schaefer, Hackett Doeren Mayhew Prager Metis Honkamp Krueger & Co Baker Tilly Virchow Krause Montgomery Coscia Greilich Rehmann Citrin Cooperman & Co Frank, Rimerman + Co.* SS&G Weaver Armanino Kahn, Litwin, Renza & Co Marks Paneth* Postlethwaithe & Netterville Notes: * Firm estimate or projection All Big Four revenue figures are gross, not net. For more details, see pages

6 overview OVERVIEW from page 4 graduating from last year s Firms to Watch list to join the T100 this year was New Yorkbased Prager Metis International, while the third new T100 Firm this year, Texas Montgomery Coscia Greilich, was one that hadn t previously been part of our survey. A number of firms joined our Regional Leaders list in the same way this year, from Virginia s PBMares and Washington, D.C. s Tate & Tryon, to Atlantabased Windham Brannon, the Mid-Atlantic s Perelson Weiner and Untracht & Early, St. Louis Mueller Prost, Houston s Melton & Melton, Oregon s Perkins & Co., and California s NSBN. If you think your firm should be one of our Top 100 Firms or our Regional Leaders, drop us an at AcToday@SourceMedia.com, and we ll add you to our contact database. After all, things are starting to look pretty good out there for accounting firms. If you can keep finding ways to grow and the staff to support that growth next year should be even better. There, we said it. AT BEYOND THE TOP 100: FIRMS TO WATCH Our Firms to Watch list is all about movement: New firms are constantly moving in, and others are moving up. In fact, the tier of firms with between roughly $20 and $30 million seems to be growing apace, forming a deep and wide pool of strong candidates for joining the Top 100, either as members in their own right, like this year s FTW graduates Prager Metis International and Skoda Minotti, or by acquisition into a T100 Firm, as with last year s merger of former FTW Gainer Donnelly into Southeast mega-regional Carr, Riggs & Ingram. Year Revenue % Total Firm Headquarters Managing partner end ($ mn.) chg. Offices Partners employees Yeo & Yeo Saginaw, Mich. Thomas Hollerback Dec Rea & Associates New Philadelphia, Ohio Lee Beall Oct Wolf & Co. Boston Mark O Connell Sept Brown Smith Wallace St. Louis Harvey Wallace Dec Clark Nuber Bellevue, Wash. David Katri Dec Padgett, Stratemann & Co. San Antonio John Wright July Bennett Thrasher Atlanta Michael Dukes June Kreischer Miller Horsham, Pa. Stephen Christian Dec PBMares Newport News, Va. Alan Witt Dec Gursey Schneider Los Angeles Stephan Wasserman Dec RBZ Los Angeles John Schweisberger Dec Baker Newman & Noyes Portland, Maine Eleanor Baker Dec NC Lurie Besikof Lapidus & Co. Minneapolis Beth Kieffer Leonard April Brady, Martz & Associates Grand Forks, N.D. Ronald Johnke Sept Somerset CPAs Indianapolis Pat Early Dec REDW Albuquerque, N.M. Ron Rivera Dec Briggs & Veselka Co. Houston John Flatowicz Sept Jackson Thornton & Co. Montgomery, Ala. Ned Sheffield Dec Anders St. Louis Robert Minkler Dec Anderson ZurMuehlen Helena, Mont. Donald Laine Sept Hutchinson and Bloodgood Glendale, Calif. Richard Preciado Sept Brown, Edwards & Co. Bluefield, W.Va. Domenic Pellillo May Feeley & Driscoll Boston T. Feeley / M. Poirier March Lutz & Co. Omaha, Neb. Gary Witt June Wolf & Co. Oakbrook Terrace, Ill. Russell Romanelli Dec Boulay Minneapolis Mark DeNucci May Green Hasson Janks Los Angeles Leon Janks Dec Johnson Lambert* Falls Church, Va. Deborah Lambert Dec Dean Dorton Allen Ford Lexington, Ky. David Bundy June Mize Houser & Co. Topeka, Kansas NA Dec ORBA Chicago Mark Thomson May Gelman, Rosenberg & Freedman Bethesda, Md. NA Dec PKF Texas Houston Kenneth Guidry Dec Windham Brannon Atlanta David Kloess Sept Keiter Glen Allen, Va. L. Michael Gracik Dec * Firm estimate NC No change NA Not available or not applicable Accounting Today estimate 6

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8 firm strategies Hanging out the help wanted sign BY DANIEL HOOD The Top 100 Firms are all over the map, in many ways. Literally, to start, they span the country, to say nothing of a wide range of industry niches, management models, growth strategies, and cultures. But no matter their size, whether they offer exotic advisory services or the plainest of vanilla audits and tax work, and regardless of their stance on value pricing, they do all share one common binding thread: They re freaking out about finding qualified staff. The war for talent is back on, warned Armanino LLP managing partner Andy Armanino. We are seeing more and more competition from outside our profession and we need to plan accordingly. We also know that change is a constant in today s world. Merger mania is real. New companies are being launched. New information is coming at us faster than we can comprehend. We need, more than ever before, a workforce that can engage with and adapt to this new reality. Hiring and retaining the best and brightest talent is the new competitive advantage. Qualified professionals are being sought after by a number of good firms, said Louis Grassi, managing partner and chief executive officer of New York-based Grassi & Co. As such, typical efforts of recruiting, including the utilization of recruiters, have become less effective in finding experienced, quality professionals. Besides establishing a supportive culture and a healthy work-life balance, Grassi s firm has put in palce a very robust employee referral program that accounted for more than 50 percent of new hires in Firms across the country are employing a wide range of strategies to attract and retain qualified staff and some firms are going so far as to hire people solely to manage them. California-based Gallina, for instance, hired its first-ever director of Our people tell us we re focused on the right things. recruitment and development last year, with responsibility for multiple new initiatives, according to MP Larry Taylor. At Kentucky s Mountjoy Chilton Medley, MP Diane Medley said, We are very focused on our talent. We are starting a formal leadership development program this year, selecting our rising stars with the most potential for equity partnership to participate. We also actively engage our Next Generation Committee in critical issues to help us consider growth, attraction and retention for the future. Recruitment and retention can benefit enormously from a less-frequently cited R recognition. National firm McGladrey made a point of highlighting its top talent in a series of videos on its Web site as part of its Personalities Wanted recruiting campaign (the messaging for which was embedded in all of its social media), and has seen the results. That s not its only personnel-related investment, of course, and merely making the investments is not enough. Investing in recruitment, professional development and work-life programs is essential, said national public relations director Terri Andrews. We are continuously re-assessing practice and processes to create the best possible experience for our current and potential employees. And our people tell us we re focused on the right things. They did that through the McGladrey People Survey, which assesses a broad range of employee engagement and satisfaction measures. Several firms highlighted efforts at building up their staff with educational and career development offerings, with some developing their own internal institutions of higher learning: BKD CEO Ted Dickman pointed to his firm s BKD University, a virtual on-demand learning and leadership development platform that landed the firm on Training magazine s Training Top 125 list, while Sikich LLP CEO and MP James Sikich touted the investment made in his firm s Sikich University, an internal learning and development program that trains staff in technical and soft skills. For its part, Big Four firm KPMG went to the source. The need for highly skilled talent is a top priority, said chair and CEO John Veihmeyer. In addition making a strategic priority of diversity, We work closely with universities, our main workforce pipeline, to promote learning and skillsets our professionals need, and emphasize the importance of global and diverse perspectives and technological savvy. At Louisiana s Postlethwaite & Netterville, meanwhile, CEO (and current American Institute of CPAs chair) William Balhoff noted the firm s increased focus on leadership development and soft skills training at all levels but also highlighted its business development training curriculum. After all, hiring and keeping a great staff only makes sense if you can bring in work for them do. GETTING COMPETITIVE Accounting firms are operating in a highly competitive environment, noted Weiser- Mazars chair and managing partner Douglas Phillips. Besides the pressures around staffing, Firms are under continuing fee pressure from clients, which intensifies market competition. See STRATEGIES on 10 8

9 CONGRATULATIONS 2014 Thomson Reuters/Tax & Accounting. All Rights Reserved.

10 top tax firms THE TOP TAX FIRMS Rev. % from tax from Total % Total Firm Headquarters Chief executive ($mn) tax revenue chg. Offices staff PwC New York City Robert Moritz 3, , ,158 H&R Block P1 Kansas City, Mo. William Cobb 2, , , ,000+ Ernst & Young New York City Steve Howe 2, , ,900 Deloitte New York City Joe Echevarria 2, , ,951 KPMG New York City John Veihmeyer 1, , ,618 McGladrey 2 Chicago Joe Adams , ,723 Ryan* Dallas G. Brint Ryan ,711 Liberty Tax Services Virginia Beach, Va. John Hewitt , Grant Thornton Chicago Stephen Chipman , ,438 BDO Chicago Wayne Berson ,248 CliftonLarsonAllen Minneapolis Gordy Viere ,660 CohnReznick New York City T. Marino / K. Baggett ,521 CBIZ /Mayer Hoffman McCann* Cleveland C. Spurio / B. Hancock ,862 Moss Adams Seattle Chris Schmidt ,072 Crowe Horwath Chicago Charles Allen ,006 WTAS San Francisco Mark Vorsatz BKD Springfield, Mo. Theodore Dickman ,013 Marcum New York City Jeffrey Weiner ,300 Dixon Hughes Goodman Charlotte, N.C. Ken Hughes ,661 Plante Moran Southfield, Mich. Gordon Krater ,947 Notes: P Figures compiled from public company reports. * Firm estimate or projection NA Not available/applicable Gross revenue 1 Staff figures include seasonal workers 2 Reported fee split as both dollar amount (given here) and percentage STRATEGIES from page 8 Armanino is alive to these concerns. The dynamics of our profession require constant change. Our products and services need to keep pace with those of our clients. Providing traditional accounting services will only prove ineffectual. What s needed is a best-of-breed approach to taking on current and future tax and accounting challenges if we re to succeed and our clients are to prosper. While we ll always need to maintain our core competencies, there should be no lack of acceleration in our ability to integrate cutting-edge solutions strategic and technological into our products and services offerings. The long-term viability of our firm relies on it. Other firms are aiming to stay on the cutting-edge though not always specifically through technology. Wayne Berson, CEO of BDO USA, is concerned about enhancing the value of the audit: It is clear that in order for the profession s core element to remain relevant, there will have to be an expansion of the auditor s role in providing greater insight into the clients financial statements and perhaps varying degrees of assurance on areas outside of the financial statements. This will affect firms of all size by requiring substantially more business and analytical skills and may also result in a demand for more specialists to be involved in audits. Big Four firm KPMG is engaged in a similar pursuit of the new and improved. We continue to focus on innovation and the enhancement of our offerings and capabilities for specific industries and growth areas, said chairman and CEO John Veihmeyer. We re also continuing to build out our alliance ecosystem to help create new services, enhance existing services and extend the KPMG brand promise to meet the needs of clients in new ways. Last year the firm rolled out a number of alliancebased offerings created in conjunction with various partners to offer clients more focused services and solutions. Crowe Horwath, meanwhile, took innovation even one step further by naming its own chief innovation officer. We are most focused on, and are investing in, innovation as a driver of growth where we can bring together functional expertise, industry knowledge, along with process and technology to provide high-value solutions, explained CEO Charles Allen. Many of these solutions will be focused in broader assurance services that the investor community and stakeholders in public interest entities are requesting. AT 10

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12 niches and clients International tax work in demand BY DANIELLE LEE International tax remained the highest growing niche service this year for the 2014 Top 100 Firms, increasing 6 percentage points over 2013 reports, according to this year s 77 responding firms. State and local taxes grew 7 percentage points to be the second-most common area of growth and bringing it even, at 82 percent, with business valuations, which similarly expanded 8 percentage points in Rounding out the top four again this year was attest services, growing 2 percentage points to 75 percent. Leading the pack in year-over-year growth, unsurprisingly, was mergers and acquisition, which saw an 11-point uptick in 2014, with 70 percent of firms reporting increased business. Below that, many services saw doubledigit increases in firms reporting growth; most notably, SOX compliance/risk management saw a list-high rise of 16 percentage points to bring it to 53 percent. Technology consulting and personal financial planning also had strong 2014 gains of 12 and 11 percentage points, respectively. ON THE GROUND Doug Wright, partner-in-charge of international tax and transfer pricing services at California-based firm Burr Pilger Mayer, attributes the continued growth in international tax services to an unusual confluence of economic recovery, globalization, and the tax and regulatory issues of about a dozen years ago that brought the niche to prominence. Basically, it s navigating the perfect storm, he said. We ve had a lot of changes in the way in which not just the U.S. but foreign countries monitor and scrutinize international business transactions from a tax perspective. The kind of international tax and accounting standards that the U.S. has applied for some time now have been adopted increasingly by countries outside the U.S. Along with the tightening accounting standards that followed corporate scandals like Enron, these regulatory concerns have led companies to take more initiative in their overseas business, Wright explained. There s a kind of heightened sense of corporate responsibility we re seeing, where companies want to make sure they re doing things in the appropriate way and are not going to be attacked by the IRS or foreign taxing authorities or are not viewed as unethical. We frequently see situations where, before companies engage us to do a major global project, they talk to other International Tax Business Valuations State and Local Taxes Attest Services Litigation Support Estate/Trust/Gift Tax Planning Industry Specializations Mergers and Acquisitions Forensics/Fraud Nonprofit Organizations Employee Benefits Biz Mgmt. for Wealthy Individuals Succession Planning/Family office Retirement Plans SOX Compliance/Risk Mgmt. Strategic Planning/Business Plans Technology Consulting Cost Segregation Personal Financial Planning Biz Mgmt. for Small Businesses Investment Advice/Services CFO/Project Staffing Services Cash Flow Forecasting/Management Financing Arrangements Bankruptcy/Insolvency Employment Search Export/Import 1031 Like-Kind IFRS consulting Business Recovery/Recession Advice Payroll Services/Consulting Lease vs. Buy Analysis companies that have done it. Not to get a referral on us, but to talk to other companies. They didn t do similar planning in the past, so [they want] to understand how that planning was ultimately viewed by the IRS and foreign tax authorities. This kind of due diligence tends to be pre-emptive, Wright continued. They don t want to see their names in the newspaper as caught up in substantial litigation in the U.S. and outside the U.S. Corporate executives have a heightened awareness that they need to do things properly, and do them upfront.... Companies [used to] just expand internationally and deal with some of these issues after the fact the Top niche services Percentage of firms increasing their business in these areas (of 77 firms responding)

13 niches and clients cart leading the horse. Now there s much more awareness and sensitivity, tax and otherwise. At our firm, we have a phenomenal amount of new international tax planning and consulting work and new clients coming our way, including very early-stage companies as they expand. When Wright joined BPM more than five years ago, he was the firm s first and only full-time international tax specialist, and while he has grown that practice to the largest in the firm for the last three years, the now roughly 12 full-time tax professionals in the practice can t keep up with all the new work. He estimates that his group can only serve half of the opportunities that come their way, but shares that finding experienced specialists in the extremely complex area of international tax is exceedingly difficult. Atlanta firm Habif, Arogeti & Wynne has been doing international work of all sorts, particularly with their manufacturing and technology clients, since the early 1990s, and now has roughly 70 people in that service line who speak 26 different languages among them. Though HA&W is also a member firm of global accountancy and business advisory network Baker Tilly International, chief executive officer Richard Kopelman credits most of the firm s growth in this niche to the inbound, grass-roots effort with the people from those countries. International tax aligns with our manufacturing and technology niche and dovetails really well, he explained. We do as much business inbound as outbound. ADDING VALUE Nearly all of the client categories for this year s Top 100 Firms displayed strong Top client categories Percentage of firms increasing their business with these types of clients (of 77 firms responding) Manufacturing Midsized Businesses Real Estate Technology Individuals Construction Healthcare Facilities Nonprofit Organizations Professional Services Wholesale Distributors Large Businesses Pension Plans State and Local Government Hotels & Restaurants Small Businesses Retail Trade Banking & Thrift Companies Entertainment Brokers/Dealers in Securities & Commodities Colleges and Universities Investment Companies & Mutual Funds Auto Dealerships Government Contractors Franchising Finance Companies/Mortgage Banks School Districts Publishing/Broadcasting/Media Insurance Carriers/Companies Insurance Agents & Brokers Gaming Agriculture/Farming/Forestry/Fishing Leasing Companies growth this year, with manufacturing leading the list at 82 percent, a 9 percentage point gain over last year. Manufacturing overtook 2013 s leader, midsized businesses in general, by only one percentage point. Midsized businesses saw a modest 4 percentage point increase this year though real estate, ranked behind it, recorded a big 12 percentage point rise to bring it to 77 percent. Only two other categories on the list surpassed that gain this year: construction, which increased 14 percentage points to 66 percent of responding firms, and, much farther down the list, small businesses, which at 44 percent also recorded a 14 percent increase over last year. Central Pennsylvania-based Reinsel Kuntz Lesher s location gives it an advantage in this market, according to Steve Fisher, a partner in the firm s audit services group and leader of the manufacturing and distribution services group. In the past ten to 20 years, companies were leaving that were not as involved in manufacturing, but some of that is coming back now with longstanding companies in manufacturing in that region, he explained. And a lot of them aren t in manufacturing, but in bringing good overseas and distribution channels. There are a lot of opportunities. RKL has capitalized on them, Fisher continued, by evaluating specific client needs. One thing we ve done in the past year is a focus group with financial folks, owners, consultants that touch consumers in the manufacturing and distribution area. We said, What do you need, what are your expectations of people providing tax and audit services? And whether we can do it and align with them to help fulfill their needs, and bring value. When you hand them a financial statement or tax return, it looks the same no matter who did it. We re responding, communicating, and trying to educate folks and arm them to do these things and help across the market. We go through the proposals and differentiate ourselves. AT 13

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15 THE 2014 TOP 100 FIRMS RANK REVENUE PERSONNEL FEE SPLIT Year $ % Off- Part- % Profes- % Total % (in percent) Firm Headquarters Chief executive end mn. chg. ices ners chg. sionals chg. emps. chg. A&A Tax MAS Other 1 1 Deloitte New York City Joe Echevarria May 13, , , , PwC New York City Robert Moritz June 11, , , , Ernst & Young New York City Steve Howe June 9, , , , KPMG 1 New York City John Veihmeyer Sept 6, , , , McGladrey Chicago Joe Adams April 1, , , Grant Thornton Chicago Stephen Chipman Dec 1, , , BDO Chicago Wayne Berson June , , Crowe Horwath Chicago Charles Allen Dec , , CliftonLarsonAllen 2 Minneapolis Gordy Viere Dec , , CohnReznick New York City Thomas Marino / Jan , , Kenneth Baggett 11 8 CBIZ /Mayer Hoffman McCann* 3 Cleveland Chris Spurio / Dec , , Bill Hancock BKD Springfield, Mo. Theodore Dickman May , , Plante Moran Southfield, Mich. Gordon Krater June , , Moss Adams Seattle Chris Schmidt Dec , , Marcum New York City Jeffrey Weiner Dec , Dixon Hughes Goodman Charlotte, N.C. Ken Hughes Dec , , Baker Tilly Virchow Krause Chicago Timothy Christen May , , EisnerAmper New York City Charles Weinstein Jan , Rothstein Kass Roseland, N.J. Steven Kass / Dec , Howard Altman UHY Advisors Inc. 4 Chicago Rick Stein / Dec , Anthony Frabotta Eide Bailly Fargo, N.D. Dave Stende April , Wipfli* Milwaukee Rick Dreher May , Carr, Riggs & Ingram Enterprise, Ala. William Carr Sept ParenteBeard Philadelphia Robert Ciaruffoli Dec Citrin Cooperman & Co. New York City Joel Cooperman Dec Key and notes: Last year s rankings have been revised based on 2012 revenue provided by firms. Some firms rankings will therefore differ from those reported last year. * Firm estimate or projection Accounting Today estimate Gross revenue NC No change NA Not available/applicable NR Not ranked 1 KPMG s office figure comprises business offices, as opposed to every physical location. 2 Figures reflect sale of health care regulatory and compliance group 3 Estimate based on trailing 12 months to Sept. 30, 2013; figures reflect the sale of the medical practice management practice. Office figures are for CBIZ; MHM has 33 offices. 4 UHY Advisors and UHY LLP are affiliated through an alternative practice structure.

16 RANK REVENUE PERSONNEL FEE SPLIT Year $ % Off- Part- % Profes- % Total % (in percent) Firm Headquarters Chief executive end mn. chg. ices ners chg. sionals chg. emps. chg. A&A Tax MAS Other WeiserMazars New York City Douglas Phillips Aug Cherry Bekaert Richmond, Va. Howard Kies April Warren Averett Birmingham, Ala. James Cunningham Dec Armanino San Ramon, Calif. Andy Armanino Dec Rehmann Saginaw, Mich. Steven Kelly Dec Berdon New York City Mark Bosswick / Dec NC Stuart Kotler O Connor Davies New York City Kevin Keane Dec Marks Paneth* 5 New York City Mark Levenfus / Dec NC Harry Moeringer Sikich Naperville, Ill. James Sikich Dec WithumSmith+Brown Princeton, N.J. William Hagaman June Anchin, Block & Anchin New York City Frank Schettino Sept NC Novogradac & Co. San Francisco Michael Novogradac Dec SS&G Cleveland Robert Littman Dec Holthouse Carlin & Van Trigt W. Los Angeles, Calif. Philip Holthouse Dec MBAF CPAs Miami Antonio Argiz June NC Weaver Fort Worth, Texas Tommy Lawler May NC Kearney & Co. Alexandria, Va. Ed Kearney Dec NC Friedman New York City Bruce Madnick Dec Lattimore, Black, Morgan & Cain Brentwood, Tenn. David Morgan / Dec R.M. Cain EKS&H6 Denver Robert Hottman Sept Schenck Appleton, Wis. Greg Barber Sept Burr Pilger Mayer Inc. San Francisco Curtis Burr Dec RubinBrown St. Louis John Herber May Horne Ridgeland, Miss. Joey Havens Dec The Bonadio Group* Pittsford, N.Y. Thomas Bonadio April Key and notes: Last year s rankings have been revised based on 2012 revenue provided by firms. Some firms rankings will therefore differ from those reported last year. * Firm estimate or projection Accounting Today estimate Gross revenue NC No change NA Not available/applicable NR Not ranked 5 Changed its named from Marks Paneth & Shron. 6 Changed its named from Ehrhardt Keefe Steiner & Hottman.

17 RANK REVENUE PERSONNEL FEE SPLIT Year $ % Off- Part- % Profes- % Total % (in percent) Firm Headquarters Chief executive end mn. chg. ices ners chg. sionals chg. emps. chg. A&A Tax MAS Other Habif, Arogeti & Wynne Atlanta Richard Kopelman Dec NC Elliott Davis Greenville, S.C. Richard Davis June Kaufman Rossin Group Miami Blain Heckaman / May James Kaufman Blue & Co. Carmel, Ind. Brad Shaw Dec NA NA NA NA NA NA NA NA BlumShapiro West Hartford, Ct. Carl Johnson Dec Frank, Rimerman + Co.* Palo Alto, Calif. Bryan Polster Dec Whitley Penn Fort Worth, Texas Larry Autrey Dec SC&H Group Inc. Sparks, Md. Ronald Causey Dec NC Schneider Downs Pittsburgh Raymond Buehler June Nigro Karlin Segal Feldstein & Bolno 7 Los Angeles Mickey Segal Dec NC Doeren Mayhew Troy, Mich. Mark Crawford Sept Frazier & Deeter Atlanta Seth McDaniel Dec NC Katz, Sapper & Miller Indianapolis David Resnick Dec Clark, Schaefer, Hackett & Co. Cincinnati Carl Coburn June Hein & Associates Denver Brian Mandell-Rice Dec SVA CPAs Madison, Wis. Carl Schultz May NC Hill, Barth & King Boardman, Ohio Chris Allegretti Aug Watkins Meegan Bethesda, Md. Michael Micholas Dec Aronson Rockville, Md. Jeffery Capron Dec Postlethwaite & Netterville Baton Rouge, La. William Balhoff April NC Squar Milner Newport Beach, Calif. Stephen Milner Dec NC Reinsel Kuntz Lesher Lancaster, Pa. Edward Monborne Dec NC Berkowitz Pollack Brant Miami Richard Berkowitz Dec NC Honkamp Krueger & Co. Dubuque, Iowa Greg Burbach Dec BerryDunn Portland, Maine John Chandler June NC Key and notes: Last year s rankings have been revised based on 2012 revenue provided by firms. Some firms rankings will therefore differ from those reported last year. * Firm estimate or projection Accounting Today estimate Gross revenue NC No change NA Not available/applicable NR Not ranked 7 Changed its named from Nigro Karlin Segal & Feldstein.

18 RANK REVENUE PERSONNEL FEE SPLIT Year $ % Off- Part- % Profes- % Total % (in percent) Firm Headquarters Chief executive end mn. chg. ices ners chg. sionals chg. emps. chg. A&A Tax MAS Other Freed Maxick CPAs* Buffalo, N.Y. Ronald Soluri April NC Raich Ende Malter & Co. New York City Ellis Ende / Dec Charles Raich Cohen & Co. Cleveland Randy Myeroff Sept Grassi & Co.* New York City Louis Grassi Dec NC NR Skoda Minotti & Co. Mayfield Village, Ohio Gregory Skoda Dec Margolin, Winer & Evens Garden City, N.Y. Teddy Selinger Dec NC Rosen Seymour Shapss Martin & Co. New York City Michael Bernstein Dec Mauldin & Jenkins Atlanta Donald Luker May SingerLewak Los Angeles Jim Pitrat Oct NA NA NA NA NA NA NA NA Mountjoy Chilton Medley Louisville, Ky. Diane Medley Dec AKT CPAs Salem, Ore. Stephen Tatone Dec NC Joseph Decosimo & Co. Chattanooga, Tenn. Nick Decosimo Dec Miller Kaplan Arase North Hollywood, Calif. Douglas Waite Feb NC RGL Forensics Denver Angie MacPhee Dec Raffa Washington, D.C. Thomas Raffa Dec Gallina Roseville, Calif. Larry Taylor Dec Seiler Redwood City, Calif. James DeMartini Dec Prager Metis International New York City David Neste / Dec Glenn Friedman Kemper CPA Group Greenfield, Ind. Ronald Dezelan April Kahn, Litwin, Renza & Co. Providence, R.I. Alan Litwin Dec Kennedy and Coe Salina, Kansas Jeff Wald March NR Montgomery Coscia Greilich Plano, Texas Thomas Montgomery / Dec Matthew Coscia Macias Gini & O Connell Sacramento, Calif. Kevin O Connell Dec Wiss & Co. Livingston, N.J. Paul Peterson March Vavrinek Trine Day Rancho Cucamonga, Calif. Kevin Pulliam Dec NA NA 200 NA NA NA NA NA Key and notes: Last year s rankings have been revised based on 2012 revenue provided by firms. Some firms rankings will therefore differ from those reported last year. * Firm estimate or projection Accounting Today estimate Gross revenue NC No change NA Not available/applicable NR Not ranked

19 CPAMERICA INTERNATIONAL HELPS YOUR FIRM KEEP CLIMBING CPAmerica International association members are independent CPA firms that benefit from practice management support, continuing education and the sharing of best practices to grow. member-driven accounting association ph: fax:

20 regional overview Regions see uneven growth Since our Regional Leaders both represent a broader range of firms in terms of size, and bring with them the particular economic conditions of their geographic regions, the trends here tend to be less clear than among our Top 100 Firms. One anti-trend that we ve noticed is the lack of correlation between the size of a region in terms of its overall firm revenues, and its growth rate. The Mid-Atlantic Regional Leaders, for instance, have combined revenues almost twice as large as the Great Lakes Regional Leaders but an average growth rate that s around half, while the Southwest has revenues that are slightly less than those of the Capitol Region, but is growing five times as fast. Local economic conditions make all the difference, of course, but the point that size is not everything is worth making. Unless, of course, you re talking about the size of our lists for each region. We ve been growing them steadily over the past few years, and are happy to report a large number of new additions this year, many of which are highlighted in the introductions to their individual regions. If your firm should be on one of our Regional Leaders lists, send us an at AcToday@ SourceMedia.com, and we ll include you in next year s survey. AT REGIONS The Capital Region 20 The Southeast 21 New England 21 The Mid-Atlantic 22 The Great Lakes 24 The Gulf Coast 24 The Midwest 25 The Mountain States 26 The Southwest 26 The West 27 THE 2014 REGIONAL LEADERS Top Firms: Capital Region Delaware, Maryland, Virginia, Washington, D.C., and West Virginia Revenue: $ million; up 2.06% While the Capital Region displayed the weakest revenue growth among the regions in 2013, it did display major growth in another way: the number of firms represented. This year s list includes a number of strong new players, like Virginia s PBMares, West Virginia s Arnett Foster Toothman, and Washington, D.C. s Tate & Tryon. Rev. % Profess- Total Fee split Firm Headquarters $ mn. chg. Offices Partners ionals emps. A&A Tax MAS Other Kearney & Co. Alexandria, Va SC&H Group Inc. Sparks, Md Watkins Meegan Bethesda, Md Aronson Rockville, Md Raffa Washington, D.C PBMares Newport News, Va Cotton & Co. Alexandria, Va Brown, Edwards & Co. Bluefield, W.Va NA 182 NA NA NA NA Johnson Lambert* Falls Church, Va Yount, Hyde & Barbour Winchester, Va Gelman, Rosenberg & Freedman Bethesda, Md Keiter Glen Allen, Va Arnett Foster Toothman Charleston, W.Va Ellin & Tucker Chartered Baltimore Tate & Tryon Washington, D.C Calibre CPA Group Bethesda, Md Gross Mendelsohn Baltimore Smith Elliott Kearns & Co. Hagerstown, Md KatzAbosch Timonium, Md NC Notes: * Firm estimate or projection NC No change NA Not available/applicable 20