Staff wages are 70% of total income | AccountingWEB

Staff wages are 70% of total income


Good afternoon all,


I have been speaking with a friend of mine that runs a consultancy firm and his business has been struggling this year, never making a profit and his creditors are starting to pile up. He was explaining that his biggest expenses were the wages, they total 70% of his monthly income and after they are paid he hardly has enough to cover the other expenses.


Is it just me or is 70% of total income on wages just unacceptable? What percentage of income should normally be budgeted for wages?


Personally I know that the guy likes to believe he is profitable and likes other people to believe he is profitable, so I wouldn’t be surprised if half the staff were there just for the sake of his ego. He employs about 30 staff members and about 10 do admin and 3 are his P.A’s.

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No hard & fast rule

ShirleyM |
ShirleyM's picture

I thought a rough figure of

Michael Mackin |

Better for some to have employment

ShirleyM |
ShirleyM's picture


Monty Python |
Monty Python's picture


neiltonks |