• BDO Boasts Massive Revenue Growth in Fiscal 2014

    By | July 29, 2014

    Of course, there is an accompanying press release to go with the good news:

    BDO USA, LLP, one of the nation's leading professional service organizations, today announced revenue for the fiscal year ended June 30, 2014 was $833 million, a 22 percent increase from last year’s revenue of $683 million.  The firm's growth was achieved through contributions from all business lines, as the firm's assurance (+21.3%), tax (+22.7%) and consulting (+23.3%) practices each achieved strong increases in revenue. 

    The firm’s assurance business line represents 58 percent of BDO USA’s business.  BDO’s tax and consulting lines represent 32 percent and 10 percent of revenues respectively. 

    "BDO's growth in fiscal 2014 was fueled in equal measures by organic growth (+11%), driven by an increased demand for services across all of our business lines, and our expansion strategy (+11%), which has garnered a good deal of attention over the past two years," said Wayne Berson, CEO OF BDO USA.  " Moving forward, we believe BDO USA is favorably positioned for continued growth as both public and private entities continue to be attracted to our industry focused approach."

    Those who know, know… oh screw it, that joke is old.

    As of the latest Accounting Today Top 100, BDO is sitting solidly at #7 below Grant Thornton. Even with a revenue increase TWICE as large as last year's, GT still boasts revenues over $1 billion (how??) so barring any huge drop for GT, don't expect BDO to overtake them for next year.

    But hey, congrats anyway to BDO and all that.

    • Big4Veteran

      I still don’t understand why privately held accounting firms feel the need to publicly release their revenues.

      That said, if they had any balls they would disclose their net income.

      • guest

        I thought it was for rankings, such as the Accounting Today referenced in the article.

      • advisorynerd

        Exactly. Top line growth through acquisitions means absolutely nothing about the performance of your firm.

        • Keith Moon

          Yeah, 11% same store YOY growth of revenues means nothing. Keep on ticking and tying out those workpapers.

          • PrivateIndustry

            AdvisoryNerd has a point. That is why firm valuations use EBITDA or EBIT when looking at performance and not revenue growth by itself. What good is any increase in revenues when a firm has a net loss?

            • Keith Moon

              AdvisoryNerd said top line growth through acquisitions means absolutely nothing, and I was pointing out they disclosed same store growth of 11%. So to get that number, either they’re charging more for existing clients, or they are growing their client base. Usually accounting firms will report net revenues, so it’s not like they are “growing” with bogus hours their staff are charging to WIP.

              Valuations use both multiples of EBITDA and revenues. You can glean operating efficiency from the combination of both numbers. To say revenues mean nothing is stupid. Revenues show earnings potential. Low EBITDA means they are just operating poorly, or they have a bunch of unnecessary expenses. Remember though, partners are greedy. They will squeeze operating expenses (primarily salaries of anybody who is not a partner) as tightly as possible so that there can be higher distributions to the partner base.

              What other components of EBITDA are there for accounting firms? Rents? Office supplies? IT? Drop in the bucket compared to labor, which is relatively fixed. Most other is either discretionary (advertising) or one-time normalizing (lawsuits, etc.) that mean beans for valuation purposes.

            • advisorynerd

              Accounting today bases their rankings off of revenues and revenue growth, I don’t believe they include any YoY statistics breaking out solely organic growth figures, so I’m not really sure what you are babbling about. The point is organic growth should be the metric by which firms are measured in these types of publications, and I’m pretty sure you agree with me and are just being argumentative because you work from BDO and feel like beating your chest.

              Thanks for the valuation lesson though, looks like somebody stayed awake for a day or two of ABV school.

            • Keith Moon

              If you’re saying that top line revenues mean little to nothing about performance for some bullshit publication’s “ranking” then ok, I agree. News flash: NO ONE outside of firms care at all about rankings.
              Oh, and I don’t work for an accounting firm. I’m not that stupid. ABV school? Please. Oh right, you’re not an accountant, you are a “consultant”. Adding value blah blah understanding client’s needs blah blah process reengineering blah blah. Good luck with that career path.

            • advisorynerd

              If you don’t work for an accounting firm then why are you getting all worked up in the comment section of an article on an accounting website about accounting firms? I’m just stating the obvious that organic growth measures are better indicators than inorganic growth, not sure why you would need to get all butthurt about it. You also have no clue about my situation or career path, but I definitely make sure to call myself a consultant instead of an accountant, because let’s be honest, I would never get laid otherwise.

            • Keith Moon

              Nobody’s getting worked up. Lighten up, Francis.

      • Pianist

        Then wouldnt dare show the world that they are slave owners.

    • cool story brah

      BDO, your penis is almost as big as GT’s. Keep on keeping on

      • Big4Veteran

        Ha! Dick measuring contest is the best explanation I can think of for these press releases by big accounting firms.

      • Guest

        Maybe, but BDO’s junk is still considerably less DYNAMIC.

      • PrivateIndustry

        Where is Chipman?

      • Chipman69

        This is too easy – BDO’s penis is not DYNAMIC, it is certainly not one of GT’s CHOSEN MARKETS and, wait for it…
        it does not posess an INSTINCT FOR GROWTH!!!!!!!!!

        • RandomExDeloitter

          This is first, and I’m sure only, time I have liked one of your GT comments.

    • PrivateIndustry

      Are these results based on their audited financials?

      • ReasonabIe Assurance

        Yeah, GT audits BDO and BDO audits GT.

        • *makes fap motion*

        • disqus_mbkF20E77K

          I hear that’s called the “Dutch Rudder”.

    • Debit This

      Not surprised, BDO was always the Alpha accounting firm of the next 4.

    • guest

      I wonder if Chipman is going to hop on the BDO bandwagon now!!!

    • IndenturedServant

      BDO has been paying way above market for laterals in my local market. I guess now I know why.

      • Guest

        Which market?

        • Indenturedservant

          The one with the startups

    • Ryan

      BDO is a tremendous place to work, no wonder growth is so high. The kool aid is bring drunk here and it shows!

      • Dave

        I tend to fully agree, shows that when value is added great results are had

        • Why are you agreeing with yourself, “Dave”?

          Busted.

          • Keith Moon

            Bahahaha. Dummy.

        • Doug

          Very valid point

    • FkwithmeYouKnowIgotIt

      Meanwhile, Deloitte could take a growth vacation and still sneeze more profit. As Jay Z says, “It’s fk y’all season.”