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Cost of Service Sold (as a %) For Accountancy Firm

Didn't find your answer?

Hey there Community.

My name is Ryan and I run a small business in the UK.

Bit of a random question I guess, but I wanted to hear from some accountants who own a local practice (Or work in one and could answer the question) what costs are associated with running your business?

I want to understand the profit margin for each client you take on to see the percentage cost for each client. I run a business with around a 70-80% profit margin and wanted to see if it was similar or completely different. 

I would also love to know the specifics as to what the costs are and what the margins are.

Let me know if this question is too vague I'm just wondering as someone who is very interested in accounting as a hobby for my own business.

Love the community here btw and would love to connect if any of you are in Leicester.

Looking forward to your reply.

Speak soon.`

Ryan

P.S: Private message me if its easier for you etc however I would love to share with the community.

Replies (19)

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By Matrix
16th Dec 2019 23:40

All my costs are fixed and not variable.

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Replying to Matrix:
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By Ryan Ramshaw
17th Dec 2019 02:11

Matrix wrote:

All my costs are fixed and not variable.

Hey thanks for the response.

So what is the profit margin for example since they are all fixed. I assumed as much that everything is fixed?

Looking forward to your reply.

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By Accountant A
17th Dec 2019 01:24

Ryan Ramshaw wrote:

I'm just wondering as someone who is very interested in accounting as a hobby for my own business.

You need to get out more.

I would have thought this information was proprietary so not sure why anyone would disclose it or what you plan to do with it. Why would you "love to know" about it? What are you going to do with any information that is given to you?

Your company is registered under the "Advertising agencies" category. Perhaps you'd like to share something about yourself and your business. You show me yours and I'll show you mine, as it were.

https://www.accountingweb.co.uk/about-accountingweb

"... the largest independent online community for accounting and finance professionals in the UK"

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By SXGuy
17th Dec 2019 09:09

I don't see how your going to get the answers your looking for. Some charge per time basis others a fixed fee. Our costs are more than likely fixed but vary depending on size of business.

That's all you get from me!

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Hallerud at Easter
By DJKL
17th Dec 2019 09:45

It depends if one has paid staff, a sole trader accountant with no staff will have virtually no cost of sales, Price Waterhouse, on the other hand, will have a fair wage bill.

It is very much a measuring string question.

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By atleastisoundknowledgable...
17th Dec 2019 10:13

May I proffer a guess that your business is - or will be - providing some sort of advertising / lead generation to accountancy firms? Further, that your wish to know GPs is to understand what you can charge for said services.

How did I do?

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Replying to atleastisoundknowledgable...:
By ireallyshouldknowthisbut
17th Dec 2019 10:40

My thoughts exactly, they want to use it in some sort of hard sale advertising

Missing the entire point that accountants can work this stuff out like big boys and girls....although judging by aweb, some probably cant...........

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Replying to ireallyshouldknowthisbut:
By Red Leader
17th Dec 2019 15:03

I'm sorry but the user names of you two always get mixed up in my mind. If only we could have avatars like in the old days.

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Replying to Red Leader:
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By atleastisoundknowledgable...
17th Dec 2019 15:14

Quote:

I'm sorry but the user names of you two always get mixed up in my mind.

Sorry??

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Replying to atleastisoundknowledgable...:
By Red Leader
17th Dec 2019 15:59

atleastisound ... and ireallyshouldknow ... sorry but it's probably just me, no offence intended. I have just had a good lunch which may be a factor.

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Replying to Red Leader:
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By atleastisoundknowledgable...
17th Dec 2019 16:50

Quote:

atleastisound ... and ireallyshouldknow ... sorry but it's probably just me, no offence intended. I have just had a good lunch which may be a factor.

I have on occasion sped read an entire thread and thought “I don’t remember this”, before rereading and noticing that it wasn’t me!

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Replying to Red Leader:
By ireallyshouldknowthisbut
17th Dec 2019 18:37

@redleader,

I don't know how I am half the time either, but we are different people.

I have assumed the imitation in naming style by ALISK was flattery for my awesome technical prowess. Or something like that.

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Replying to Red Leader:
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By SouthCoastAcc
18th Dec 2019 09:46

its not just you

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Replying to atleastisoundknowledgable...:
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By Accountant A
17th Dec 2019 11:38

Quote:

May I proffer a guess that your business is - or will be - providing some sort of advertising / lead generation to accountancy firms? Further, that your wish to know GPs is to understand what you can charge for said services.

How did I do?

How cynical can you get! He said, it's just his hobby.

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Replying to Accountant A:
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By atleastisoundknowledgable...
17th Dec 2019 11:48

He said "... as a hobby for my own business."

i.e. his business has a hobby of knowing accountant's GPs. You know, in the same way that my business has a hobby of knowing what freelancers pay to have their tax returns done.

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Replying to atleastisoundknowledgable...:
Hallerud at Easter
By DJKL
17th Dec 2019 15:00

It is no different from philately.

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By Tim Vane
17th Dec 2019 14:31

A perfectly normal and balanced question, if I may say so.

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By memyself-eye
17th Dec 2019 15:57

accounting as a hobby?

Hmm, that's a new one.

I made loads before HMRC tripled my compliance fees, now I only make 110% GPM

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Replying to memyself-eye:
Hallerud at Easter
By DJKL
17th Dec 2019 16:18

I actually do plan to take up reading about accounting theory and economics as a hobby when I finally fully retire, mainly to try to help to keep my grey matter working, I also plan to possibly revisit some engineering and maths; it is not that uncommon.

What my father read about law once he became a retired solicitor had no practical application in the real world(Justinian, Roman Law et al) but it kept his mind active and refreshed his Latin- that and the crossword probably kept his mind busy and active right up until he died.

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