I am curious, what do other accounting practices think is an acceptable multiplier of an accountants day rate (plus employer contributions) to achieve reasonable profits. Taking into consideration the client fee needs to cover the other indirect costs and staff memebers who do not do chargeable work e.g. admin.
Would a 3x multiper of the accountants day rate and associated employer costs seem reasonable?
We charge a fixed price but I do want to consider whether some of the clients are actually profitable... I do appreicate there are many variables that will affect what someone may consider a reasonable multiplier to e.g. 'other staff' to accountant ratio, local renting costs etc. However, I am looking for a ball park figure.
Any answers would be highly appreciated.