Subcontractor Accountant Rates - 2013

Subcontractor Accountant Rates - 2013

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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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Glenn Martin
By Glenn Martin
30th Jul 2013 19:29

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.

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By Tosie
30th Jul 2013 21:48

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.

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By Peter613
30th Jul 2013 23:00

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.

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Replying to Duggimon:
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By Patter
31st Jul 2013 11:07

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.

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blue sheep
By NH
31st Jul 2013 08:27

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%

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By RR-80
31st Jul 2013 11:46

Many thanks for the responses

Thank you all for the responses, good to know these things.

 

With regards to Glennzy's question re equivalent hourly rate, all things considered it's probably a pitiful amount!

The firm I get most of my work from set themselves apart from others in that they don't cut corners. i.e. no stone is left unturned. It fits in with the way I have always worked myself but the downside is that there are some jobs which turn out to be non-profitable to me.

I take the hit because there are other jobs that are more straight forward and make up for the loss leaders.

In terms of profitability, part of the problem is that most clients stay clear of accountancy software packages (even the good clients) which means that one can be spending a considerable amount of time sorting through paperwork and having to request further info which hasn't been supplied.

.....Patter does have a valid point with regards to level of competence and I would imagine that a % rate would differ depending on experience.

....Tosie, yep I wouldn't dream of sending something out without first having it reviewed. Having previously worked in the pharmaceutical industry, even very experienced senior staff will have their work checked by a colleague. 

 

 

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By Tosie
31st Jul 2013 13:42

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.

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By RR-80
31st Jul 2013 14:12

I agree

Yep totally agree that it is more likely to be the smaller practices that use subcontractors.

Having employed staff sat around during quiet times might not be cost effective for such firms. Sod's law that loads of work from various clients comes in at the same time! Having subcontractors to do the work as and when needed makes sense.

 

Subcontractors are useful where existing staff lack skills in a specific area. I am valued for the analysis work that I do on extracted client reports, particularly where knowledge of excel and formulas are required to summarise/interrogate data.

 

 

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