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Sorren Benchmark Report

Kestrel CPA Group

Medford, OR · NAICS 541211 Offices of Certified Public Accountants

Tax year 2026
Prepared by Michael Barlow
Medford, OR office
Section 1

Executive Summary

Kestrel CPA Group generated $10,851,000 of revenue in 2026 with 44 employees, producing an EBITDA margin of 31.0% against a peer median of 24.3%. Compared with 179 similar businesses, performance is strongest in leverage and warrants examination in asset efficiency. Total benchmark variance across all categories is $350K.

Section 2

Company Snapshot

Revenue
$10.85M
Employees
44
Entity type
Partnership
Years in business
18
Gross margin
93.2%
EBITDA margin
31.0%
Net margin
23.4%
Effective tax rate
20.3%
Section 3

Peer Group Definition

179 businessesNAICS 541211 — Offices of Certified Public AccountantsORRevenue $5.4M–$17.4M22–62 employeesTax year 2026

Comparison sample size 179; NAICS 541211; revenue range $5.40M$17.40M; geographic filter OR. Data availability for this client: 81% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold6.8%5.9%5.2%
Gross Profit93.2%94.1%94.8%
Payroll36.3%45.0%40.2%
Benefits6.5%6.8%5.9%
Occupancy6.4%6.1%5.2%
Marketing2.4%2.2%2.4%
Insurance1.5%1.2%1.1%
Professional Fees2.3%1.9%1.7%
Administrative & Other5.8%5.0%4.4%
EBITDA31.0%24.3%30.7%
Depreciation1.2%1.2%1.1%
Interest0.5%0.6%0.5%
Net Income23.4%18.1%23.1%
Section 5

Profitability and Operational Efficiency

Growth
43rd
Profitability
57th
Labor Efficiency
81st
Operating Efficiency
51st
Liquidity
95th
Leverage
97th
Tax Efficiency
41st
Asset Efficiency
34th
Section 6

Balance Sheet

Current Ratio
9.21
median 6.55
Quick Ratio
9.21
median 6.55
Debt / EBITDA
0.21
median 0.34
Debt / Equity
0.22
median 0.37
Days Sales Outstanding
61.22
median 57.32
Asset Turnover
2.48
median 2.82
Section 7

Tax Overview

Federal tax
$505,233
State tax
$142,502
Effective rate
20.3%
Section 179
$90,819
Owner compensation
$1,041,819
Owner distributions
$1,737,093
Retirement
$191,571
Capital expenditures
$167,183
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$8.85M+7.2%92.9%32.8%40.7%
2023$8.86M+0.1%92.9%32.8%40.7%
2024$10.12M+14.3%92.9%32.6%40.9%
2025$10.25M+1.3%93.1%31.4%42.4%
2026$10.85M+5.9%93.2%31.0%42.7%
Section 9

Opportunities for Discussion

  • Owner Compensation Structure. Owner compensation represents 9.6% of revenue compared with a 11.9% median for comparable entities. Should compensation strategy be reviewed with the tax team?Benchmark variance $251K
  • Gross Margin Variance. Gross margin of 93.2% compares with a peer median of 94.1%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $99K
  • Payroll Efficiency. Total labor cost represents 42.7% of revenue against a peer median of 52.1%. Is the staffing model carrying capacity for growth, or absorbing margin?
  • Operating Expense Load. Operating expenses run 62.2% of revenue versus a peer median of 69.4%. Which expense categories account for the difference?
  • Revenue per Employee. Revenue per employee of $247K compares with a peer median of $214K. Is productivity constrained by capacity, mix, or pricing?
  • Working Capital Position. Current ratio of 9.21 compares with an industry median of 6.55. How much liquidity headroom does the business need through its cycle?
  • Leverage Profile. Debt to EBITDA of 0.21x compares with a peer median of 0.34x. Does the capital structure match the asset base and cash cycle?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.