Charles Leikauf says accounting firms doing $1M in revenue should take home about $500K. If you're not hitting that 50% margin, your pricing is wrong. A portfolio review looks at billable hours, staff pay, and whether you're meeting targets.
Because if you do $1 million a year in revenue in your accounting firm, you should be able to take home half of that, $500,000. So if you're not hitting about a 50%, you know, take-home operating income margin from your accounting firm, you probably have the wrong price. You need to go through a portfolio optimization. When we run you through our portfolio optimization method, one of the things that we help you do is we look at how many hours are you working? What is the cost of your staff? Is that in line with market? Do all these align? Are you hitting the specific margins and KPIs that you need?
