Fee base v staff ratio

Fee base v staff ratio

Didn't find your answer?

What level of fee base would you expect one Practitioner, 1 admin staff member and 1 bookkeeper to be able to manage?

I understand this can vary widely depending on client type, and level of bookkeeping, but there will be common ground within similar firms.

Replies (7)

Please login or register to join the discussion.

avatar
By CA-London
01st Oct 2014 16:04

300k?

Thanks (0)
blue sheep
By NH
01st Oct 2014 16:48

120k, I still think the rule of thirds applies, one third overhead, one third wages, one third profit.

but if the owner was willing to work 80 hours a week you could push that up to around 150k

Thanks (0)
Replying to DeeLee:
paddle steamer
By DJKL
01st Oct 2014 17:17

Rule of a third

NH wrote:

120k, I still think the rule of thirds applies, one third overhead, one third wages, one third profit.

but if the owner was willing to work 80 hours a week you could push that up to around 150k

 

It does not apply re a small practice working out of the house, my total overheads struggle to exceed 12% of fees and if I was full time it would be substantially less as the bulk of costs are for subscriptions/publications which do not vary straight line with fee level.  They would be nearer 5% at most if I was full time.My current staff cost, albeit everything is part time, is nearer 20% of fees at present . So my profits if I were still a sole practioner ( I am now incorporated) would be nearer 75% of fees.

Thanks (0)
paddle steamer
By DJKL
01st Oct 2014 16:50

Is the admin member of staff chargeable?

Is the admin member of staff chargeable or are they purely admin/support?

Practitioner at my sort of level, smaller clients, circa £130,000 

Book keeper again with my sort of clients, circa £40,000 

Edinburgh ,with mainly smaller clients and only running a P/T practice with really no staff so my time above would be based on fully occupied at circa current charging level, book keeper recharge more of a guess  based on £20 per hour recharge.

 

Thanks (0)
avatar
By andyjdicker
01st Oct 2014 16:51

Some simple Maths should help you..whats your average fee per client?

Lets assume you have a mix of tax cases, and business. Lets say an average of maybe £1500 per business client, covering payroll, VAT compliance, accounts and taxation.

Lets say it takes 2 working days a year to cover that work with the bookkeeper providing the support for that work so that's 2 a week, assuming one day a week roughly for other stuff (practice management, networking, seeing new clients etc)

So, lets say 47 working weeks (4 weeks holiday, + Xmas), that's income of about £140k.

In addition you might have say, 100 personal tax clients with yearly fee income between £100-£300 maybe.So that's an additional £20,000.

So add the two together, that's a total of £160k ish. Of course your mileage may vary.  

Thanks (0)
avatar
By Tosie
01st Oct 2014 18:21

Simple maths

Your charge out rate * by 30 hours a week for 46 weeks.

Book-keeper £20 an hour charge out assume 30 hours chargeable * 46 weeks.

Thanks (0)
avatar
By Maslins
02nd Oct 2014 09:56

Inevitably depends upon:

Inevitably depends upon a bunch of things:

1) how streamlined/automated you are,

2) whether the practitioner is largely working "in" or "on" the business,

3) whether people are working flat out or not,

4) you haven't mentioned whether these are full or part time...I'm going to assume full time,

5) no mention of outsourcing...I'm assuming this isn't done,

6) quality of clients/level of work done (inevitably more can be charged for higher level work than low level data entry.

I'd suggest any less than £100k and you should be looking to improve.  £300k is definitely possible for an efficient set up.

Thanks (0)