Services
Hourly rate for an accounting firm: the full example
In this example, each billed hour costs the firm €66.03 excl. VAT, and €68.07 with its unpaid invoices and fees. It charges €75: it makes money, but less than it thinks.
Worked example
At €75 excl. VAT/h: revenue €163,680. After costs: €19,580. After 2% unpaid invoices and 1% fees: €14,669.60. After 25% tax: €11,002.20 profit, on top of salaries. “Annual accounts” job: 30 h at the recommended rate of €82.54/h (rounded) = €2,476 excl. VAT + €66 travel. A fixed fee of €2,200 excl. VAT works out at €71.13/h: above the €68.07 floor, below target. For an extra €30,000 profit a year: €86.97 excl. VAT/h. At €75/h it would take 2,531 billed hours; the firm only has 2,182.
Your situation doesn't look like the example? Do the full calculation with your own figures: it's free, with no sign-up.
Do my calculation