Globaltraded.com — Chicago-based RSM maintains its position as the fifth-largest accounting firm in the U.S. based on revenue, trailing only behind the Big Four firms.
In its released impact report, RSM US disclosed a revenue of $3.7 billion for the fiscal year 2023. This represents an increase from $3.3 billion in 2022.
Brian Becker, RSM US managing partner and CEO, highlighted the firm’s commitment to providing insights and solutions to help clients and teams navigate challenges. The report outlined the firm’s efforts during economic headwinds and support provided to clients during the banking crisis. Additionally, RSM has expanded its managed services offerings to address labor shortages and operational efficiency concerns. The firm has also ventured into new areas such as environmental, social, and governance (ESG) to support clients in these evolving fields.
Becker emphasized the firm’s strategic positioning for the future, including the launch of a new global strategy for 2030 in January 2023. This strategy unites RSM’s 57,000 employees worldwide. The domestic realignment of business aims to enhance experiences for talent and clients. The firm has configured its lines of business around common service lines, capabilities, and solution sets, enabling employees to build expertise aligned with their passion. It also facilitates the assembly of strong teams to serve clients and the swift deployment of digital tools and resources.
RSM’s industry teams focus on delivering compelling insights and services, while the market structure harnesses the full power of RSM to meet client needs. The firm has expanded its offices in India and El Salvador to bring in new talent and support domestic teams in delivering services to clients.
Breaking down RSM’s core service lines, consulting contributed 38% to the firm’s revenue, followed by tax at 33%, assurance at 28%, and other services at 1%.
RSM is the fth largest public accounting firm in the U.S. by revenue, only behind the
Big Four firm (Deloitte, PwC, EY, and KPMG).
Paralel with RSM global performance
Globally, RSM also growing well. RSM posted revenues of over $8 billion for 2022. In 2022, RSM delivered 15% growth globally, with double-digit growth across all regions. Fee income rose fastest in the emerging markets of Latin America (26%+) and Asia Pacific (19%+). In North America and across Europe, RSM also recorded impressive revenue growth of 14% and 17% respectively, while the Middle East and North Africa region grew revenue by 17% and the rest of Africa by 10%.
RSM has seen its worldwide fee income leap by 41.7% in the last three years, driven by increased requests across all regions for client support to address shifting fiscal and economic policies, supply chain disruption and the business and human impacts of the pandemic.
In 2022, global fees from RSM’s consulting services grew by 37%, including IT consulting which increased by 26%. As cyber-attacks remain a constant threat, global risk advisory revenues rose by 26%.
RSM also experienced strong global growth across accounting (11%), tax (8%) and audit (6%). Demand for tax advisory services rose at pace to meet the needs of regulatory changes and increased tax complexity, and audit and tax remain core service areas for RSM.
With a focus on creating an unrivalled, inclusive culture and employee experience, RSM continues to attract large numbers of new talent to join the organisation with 18% growth in headcount in the last two years alone.
Jean Stephens, Chief Executive Officer of RSM International, articulated the firm’s purpose, stating, “At RSM, our purpose is to instill confidence in a world of change.” The rapid growth of the firm is attributed to professionals supporting clients in over 120 countries amid an environment of unprecedented change and unpredictability. To solidify its position as the global leader in professional services for the middle market, RSM plans to invest in transforming into an insight-driven, digital organization with compelling products and solutions.
RSM’s experts foresee continued strong levels of global mergers and acquisitions (M&A) in the coming year. This is driven by technology-focused businesses seeking funding for scaling, private equity firms deploying significant dry-powder, and an uptick in bolt-on and cross-border deals. Businesses, in some cases, are turning to mergers or acquisitions to counteract the negative impacts of skills shortages, supply chain disruptions, energy concerns, and inflation crises.
The firm anticipates that businesses will accelerate organizational change and prioritize innovation. This includes considering ways to integrate artificial intelligence and automation technology, reskill teams, or leverage data analytics and business process outsourcing to protect and enhance performance.
RSM’s 2030 Global Strategy represents a significant multi-year growth and transformation program aiming for 100% revenue growth by 2030. The strategy involves increased use of global, digital delivery models, enhanced insight generation, and broader utilization of automation, big data, machine learning, and artificial intelligence to adapt to the evolving world of work and skills.
The strategy unites RSM’s firms under common international methodologies and structures, driving service quality, promoting responsible business practices, and enhancing agility and innovation. With a growing global client base, RSM remains committed to delivering exceptional client service, expert human insight powered by technology, and tailored solutions.
The strategy will involve substantial investment in talent, transforming RSM into a seamless global organization with aligned teams, culture, governance, and processes across borders to empower clients and RSM personnel to achieve their ambitions. Jean Stephens emphasized that RSM has entered a new transformative business age characterized by data-driven technological products and services, new working approaches, and a clear focus on sustainability and purpose. The organization’s growth has been driven by its effective response to these challenges, with its mantra being to “Take Charge of Change.” (GT)
