CPA firm management solutions provider
The solution uses advanced workforce data analytics, peer benchmarking, and real-time what-if scenario modeling to analyze a firm’s workforce and allow leaders to set precise profitability goals. Makosi then co-creates a roadmap to achieve them.
The release comes after a six-month testing period with dozens of CPA firms large and small. Based on user data from this period, Makosi found that most CPA firms operate at a utilization rate of just 55% to 65% at the staff-to-manager level. On average, firms log 2.4 times more hours in peak months than in trough months, yet maintain headcount above peak-demand levels year-round. For every $100 million in revenue, said Makosi, a typical CPA firm has a $10 to $15 million unrealized profit potential, with about 80% driven by efficiency improvements. Finally, profit-per-partner improvement opportunities range from $100,000 to $300,000 per partner.
“Most firms report on utilization, but they don’t always fully understand what it’s costing them,” said Lindsay Gaal, chief customer officer at Makosi. “They know there’s a problem, but when it comes to fixing it, they’re often left scratching their heads. We give them the ability and show them the path to do exactly that.”
The announcement follows the May release of Makosi’s AI agent EBP Eddy, made specifically for employee benefit plan audits. EBP Eddy helps users onboard new team members, answers EBP-related questions, and supports ongoing development, which is meant to be especially helpful for those new to EBP auditing; works alongside Makosi’s auditors in real-time, offering contextual support such as help with working paper preparation, highlighting exceptions, validating completeness, drafting follow-up emails, and sampling assistance; and builds efficiencies by assisting with data standardization, performing routine testing, and completing first-pass reviews of workpapers.
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