Hi All!
I've been trying to research the typical going rate for a part-qualified subcontractor accountant (working on behalf of an accountancy practice). Unfortunately, there doesn't seem to much information out there on the web!
If anyone uses subcontractors then I'd be interested to know what rate is typically considered the norm for an experienced individual (Fixed Fee % or Capped Hourly Rate)
The main firm which I prepare accounts and tax returns for pays me 50% of the amount billed to his clients (small practice predominantly using subscontractors). Is this standard? Does this differ for different sized practices? Does this depend on how the firm is structured?
I realise that this may be a sensitive area and so happy to be PM on this.
Many thanks
Replies (8)
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50% seems a good rate
On another post recently it was quoted as 30% if I recall correctly I thought 30 to 40% was going rate to be honest so I would say 50 is top end of what you could expect to earn. I suppose it all depends at what level the fee is charged on at. What sort of hourly rate does your fee work back to.
30%
50% is top end and would take up to much of the profit on the job. I would not let any job leave my office without a review by myself which involves time.Add in overheads year long support and I consider 30% is a reasonable fee for a sub contractor
Well done for getting it.
One third
I was always taught a third is the norm, on the basis that its a third for the subcontractor, a third for overheads and a third to the partner.
What overheads? Salaried staff yes, but.......
What overheads? Salaried staff yes, but unless the subc has a desk in the office, which could be construed as P/t worker, then subcontractors should receive 50% min, if not more depending on their competence.
3xsalary is the norm for large companies....but for small companies with low o/h then 2x or even 1.5 times covers the extra time supervising / training/correcting. BUT it all depends on the market and what is acceptable to clients and workers, not only on price but quality.
Having moved, I was thinking of approaching local practices for subcontract work or leads - good to know how the other side operates!
A little knowledge.......leads to more questions than answers.
one third
agree with seitler, in my high street practice we always worked on the one third rule, I suppose with no employers NI/holiday pay/wasted time chatting on Facebook etc though as you would with an employee you could push that to 40/50%
overheads
Prof.Subs Pro Indemnity endless cpd courses,marketing ,office costs,software all have to be paid for out of the fee, Bigger practices have more clients to absorb the overheads but I suspect that it is the smaller practice that uses sub contractor.