Sub Contract Work

Adam.uk · Jul 1, 2009

Hi all,

A question for the accountants

I'm leaving my current employer and he has asked me to continue doing work for him on a subcontract basis.

As accountants who might do this already or consider doing it, what percentage of the fee would you pay the subcontractor for the accounts preparation work?

Cheers
Adam

MyAccountantOnline · Jul 1, 2009

Adam.uk said:
Hi all,

A question for the accountants

I'm leaving my current employer and he has asked me to continue doing work for him on a subcontract basis.

As accountants who might do this already or consider doing it, what percentage of the fee would you pay the subcontractor for the accounts preparation work?

Cheers
Adam

I think 25-30% is usual

Maslins · Jul 1, 2009

I think traditionally the theory was 33% of the fee goes to the worker (ie you), 33% covers overheads, and 33% should be profit (ie reward for "owning" the client).

It will depend a bit on how far you will take things (eg will you raise all queries with the client and post journals etc). Will also depend on whether you'll use the firm's equipment and software.

In short, I think Nicola's estimate is a bit low, I'd say 33-40% depending on how reliant you are on the firm's stuff.

MyAccountantOnline · Jul 1, 2009

Maslins said:
I'd say 33-40% depending on how reliant you are on the firm's stuff.

Chris you are clearly MUCH more generous than me!

It will of course vary practice to practice but I havent actually seen any subcontractor get 40% in any practices I have ever worked in and certainly wouldnt pay that myself.

accountancyextra · Jul 1, 2009

Nicola HJ said:
Chris you are clearly MUCH more generous than me!

It will of course vary practice to practice but I havent actually seen any subcontractor get 40% in any practices I have ever worked in and certainly wouldnt pay that myself.

I'd agree with Nicola and agree that about 25-30% is about right.

Maslins · Jul 1, 2009

I got 33% on a few jobs I did a little while ago, and I borrowed the firm's laptop, did everything at their premises, used their software etc. It was implied I could get more in future, but then we got more of our own clients where we obviously took 100% so it wasn't an issue

Not saying I'm right and these guys are wrong but I guess it depends on your level of expertise/experience. This will reflect on whether the firm offering the work feels they need to check over everything you've done, or whether they can just sign their name underneath your work (which of course no professional firm would ever do

)

accountancyextra · Jul 1, 2009

Maslins said:
I got 33% on a few jobs I did a little while ago, and I borrowed the firm's laptop, did everything at their premises, used their software etc. It was implied I could get more in future, but then we got more of our own clients where we obviously took 100% so it wasn't an issue

Not saying I'm right and these guys are wrong but I guess it depends on your level of expertise/experience. This will reflect on whether the firm offering the work feels they need to check over everything you've done, or whether they can just sign their name underneath your work (which of course no professional firm would ever do )

I certainly think it's true that the less review they feel they need to do, the higher the fee they'll feel they can pay to the subcontractor.

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