| 12:24pm Dec 11, 2000 PST (#1 of 5)
We are a growing company that has faced some turnover in the Accounting department. We have been able get a handle on all of the accounting functions however that has been at some cost. As we try to create and further develop the Accounting department we are struggling with the cost.
My question is: Can anyone share with me what an accounting department should cost an agency as a percentage of revenue.
Perhaps someone knows where there are some industry statistics that would break down the administration cost percentages by position or by department.
THANKS
Rick dimmer McCormick Advertising Agency
12:25pm Dec 11, 2000 PST (#2 of 5)
I base my cost rate as follows: hrly salary cost + 35 to 40%. It's a formula I got from my accountant. Once a year, I get a fin.l guru to run the numbers to make sure I'm in line. That involves overhead, benefits, cost of equipment, insurance, etc. Good luck!!
Felica Sparks Office Manager Benton Newton & Partners Advertising
12:26pm Dec 11, 2000 PST (#3 of 5)
I can't answer your question as we are only 25 person agency (I aim to keep entire O/H no greater than 25% of revenue) but my advice is to join SecondWind. (www.secondwindnetwork.com) They are an organization of agencies across the nation. I have used their research extensively over the last 4 years. Great newsletters and they have annual financial surveys that are wonderful tools in planning your budget.
Roxanne M. Cowan Director of Finance Rutherford Bolen Group
12:26pm Dec 11, 2000 PST (#4 of 5)
The 4A's usually have this info if you are a member.
Mary McMurtrey
12:27pm Dec 11, 2000 PST (#5 of 5)
Hi Rick,
Try the APDF Annual Firm Performance Survey. It has a complete revenue survey together with a compensation and benefits survey. I believe there is a fee for this survey to non-members, but if it gives you a good benchmark, it should be worth the nominal fee.
Shannon Ellis Business Manager Tackett Barbaria Design shannon@tbdesign.com Hi Rick,
Try the APDF Annual Firm Performance Survey. It has a complete revenue survey together with a compensation and benefits survey. I believe there is a fee for this survey to non-members, but if it gives you a good benchmark, it should be worth the nominal fee.
Shannon Ellis Business Manager Tackett Barbaria Design
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