A new report from the nonprofit Business Consultants Alliance highlights the importance of the “big five” businesses in the industry—business consulting, legal, accounting, public relations, and media.
The study also examines the cost of those five to the companies’ bottom line, noting that some companies are “getting screwed by consultants who make more money for them than they pay for their services.”
The report was released on Wednesday.
The Big Five Business Consultant Fees Are Getting Screwed The report states that “the cost of consulting is growing faster than any other sector in America.”
The most recent numbers from the American Institute of Certified Public Accountants (AICPA) show that consulting fees, which are not taxed, grew faster than the rest of the economy in 2017.
The AICPA’s annual report shows that the total cost of all consulting work by a single company grew $7.9 billion from 2017 to 2019, up 9 percent.
This growth in the cost is due in large part to the boom in the field of business consulting, the report says.
In 2017, there were more than 9,000 firms that received consulting fees from the public sector, according to the report.
Of those firms, a total of $4.2 billion was paid out in fees, according the AICPAs annual report.
Business consultants earn a percentage of the work done, which is referred to as the “sales margin.”
In 2017 the sales margin for a business consulting firm was $3.4 billion.
That was up from $3 billion in 2017, according a 2016 AICOPA report.
The report noted that consultants earn an average of $1.85 million for their work.
The average consulting firm pays the following: • $600,000 for an annual conference • $200,000 to attend a professional development workshop • $50,000 on conference expenses and up to $500,000 per seminar • $100,000 a year in consulting fees for their consulting work, according in the AACPA report.
That represents a 25 percent premium over the average consultant’s salary of $200 per hour.
• The average consultant receives about $1,400 in compensation, according this 2017 AICPAC report.
For example, a business consultant with a four-year career earning $250,000 can expect to earn $3,500 per year.
The most lucrative consulting job for consultants is the CEO role, which usually pays $1 million to $3 million per year, according AIC PAC.
The top consulting firm to work for is McKinsey & Co. and its top-paid executive is former Secretary of State Hillary Clinton.
The consulting industry is also growing faster and better than the economy.
According to AIC PACs annual report, there are nearly 200,000 consultants in the U.S., of whom just 14,000 are full-time employees.
The next highest-paid full- or part-time employee is a software engineer at a financial services company, with an average hourly salary of about $40,000.
The second-highest paid full-timers is a salesperson at a medical-tech company with an hourly wage of $50 an hour.
The bottom line is that the consulting industry, especially in its high-growth stage, is a big business, the AACC report states.
Business Consultancy Fees Are Growing Faster Than The Economy In the report, the consultants found that “in the past decade, the consulting field has grown substantially faster than inflation and wages.”
The authors of the report noted “that the industry has experienced an increase in demand and the need for expertise in the fields of accounting, legal services, accounting consulting, public affairs, and communications.”
In fact, consultants made more money from consulting than from their other work in 2017 as compared to previous years.
According the report: • The consulting firm’s revenue grew by more than 6 percent from 2017 through 2019.
• For each million dollars in revenue that the firm received in 2017 and each million in revenue in 2019, consultants earned an average salary of just $2,800.
• There were an estimated 4.5 million consulting firms in the United States.
• These consultants earned a total revenue of $2.2 trillion in 2017—up from $1 trillion in 2016.
• Consultants earned an annualized rate of 9 percent in 2017 based on a median income of $56,000 in 2017 (compared to 9.5 percent in 2016).
• The industry grew at an annual rate of more than 7 percent in the past five years, the authors of this report say.
The authors note that “while the consulting sector is growing rapidly, so is the economy.”
“The business consulting industry will be worth more in the future,” they wrote.
“The trend is positive and this is a good thing for the economy and the people of the United State.”
Business Consultations Are Increasing In Demand Business consultants are now more important than ever in the marketplace.
They are helping companies in a wide variety of industries and sectors