Boardroom Insight

Consulting Sector News and Trends

Services demand propels RSM’s fee income 16% higher in fiscal 2023

This article was written by a human. Here’s how to tell.

RSM has disclosed that its revenue grew by 16% during its most recent fiscal year to reach $9.4 billion, a new record.

Much of that growth was driven by the firm’s tax advisory business, which brought in fee income of $2.6 billion. That represents a year-over-year improvement of 17%. RSM’s second largest division was its consulting unit, which helps clients with tasks such as modernizing IT infrastructure and launching sustainability initiatives. The latter unit’s top line jumped 16% last year to $3.1 billion.

RSM’s core accounting and audit business grew at a slower clip in fiscal 2023, but continues to account for a significant portion of the firm’s fee income. The unit wrapped up the year with fee income of $3.6 billion, 13% more than 12 months earlier.

A significant portion of the new fee income RSM added during 2023 came from deals with clients in Europe. According to the firm, its European offices delivered 36% revenue growth in the 12 months through December.

Much of the credit for that regional sales boost goes to Ebner Stolz, a major professional services firm in Germany that RSM absorbed last March. The deal saw RSM gain 2,100 people as well as approximately €343.5 million in annual revenue. Ebner Stolz’s main area of focus is providing accounting services and related consulting offerings to companies.

In North America, RSM also experienced double-digit sales growth. The firm’s fee income from contracts with North American clients jumped 13% on a year-over-year basis.

RSM CEO Jean Stephens commented in a prepared statement that “this year’s financial results further cement our status as the leading global provider of professional services to the middle market. Powered by our 2030 Global Strategy – Taking Charge of Change – RSM has worked collaboratively as a global organisation more than ever before to innovate and better serve clients across borders.”

Now that it has closed the books on 2023, RSM’s leadership team is looking ahead to the next four quarters. The firm said that it will invest in new technology initiatives to make its audit services more competitive. RSM added that it also plans to bolster its sustainability consulting practice.