ASA Central Network

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Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
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Interesting dilemma. Are all of these people working on the same physical location? How many non-billable staff members do they have now? What is the growth trajectory of the business? What function would added admin staff perform?

I suppose you can look at the percentage of admin staff to total wages and/or as a percentage of gross profit (probably a better measure). Determine what level of admin expense is tolerable and/or develop a measure that fixes admin support % to revenue growth %.

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Jay Mattern
CEO
Villing + Company
South Bend IN
(574) 277-0215
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Original Message:
Sent: 09-16-2020 12:31
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Looking for some guidance for a client and hope you can chime in with your expertise. A financial services firm with 4 partners and 65-70 employees is wondering how many support staff/admins are typical for this size group.   My understanding is they are understaffed in this area but reluctant to bring on additional "non-billable hour" employees. Most of the employees are accountants/financial planners who don't require a significant amount of assistance. Do any of you know if there is a particular formula or strategy in place for determining the right answer? I know this answer can vary based on the partners and employees needs, but any general guidance/suggestions would be appreciated. Thank You

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Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
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Thank You Jay. I really appreciate your response. We are trying to get some of those questions answered from the client but I think your suggestion of evaluating percentage of admin staff to total wages is a very good one. Thanks again!
Ellen

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Ellen Grealish
Co-founder/Partner
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------

Original Message:
Sent: 09-17-2020 07:04
From: Jay Mattern
Subject: Client trying to determine how much admin support is needed

Interesting dilemma. Are all of these people working on the same physical location? How many non-billable staff members do they have now? What is the growth trajectory of the business? What function would added admin staff perform?

I suppose you can look at the percentage of admin staff to total wages and/or as a percentage of gross profit (probably a better measure). Determine what level of admin expense is tolerable and/or develop a measure that fixes admin support % to revenue growth %.

------------------------------
Jay Mattern
CEO
Villing + Company
South Bend IN
(574) 277-0215

Original Message:
Sent: 09-16-2020 12:31
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Looking for some guidance for a client and hope you can chime in with your expertise. A financial services firm with 4 partners and 65-70 employees is wondering how many support staff/admins are typical for this size group.   My understanding is they are understaffed in this area but reluctant to bring on additional "non-billable hour" employees. Most of the employees are accountants/financial planners who don't require a significant amount of assistance. Do any of you know if there is a particular formula or strategy in place for determining the right answer? I know this answer can vary based on the partners and employees needs, but any general guidance/suggestions would be appreciated. Thank You

------------------------------
Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------

One other way to look at this is billable vs non-billable time as a percentage to the total. Most industries that work on billable time (financial and legal firms, marketing agencies, etc) try to keep billable time at no less than 60%.

------------------------------
Jay Mattern
CEO
Villing + Company
South Bend IN
(574) 277-0215
------------------------------

Original Message:
Sent: 09-17-2020 08:00
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Thank You Jay. I really appreciate your response. We are trying to get some of those questions answered from the client but I think your suggestion of evaluating percentage of admin staff to total wages is a very good one. Thanks again!
Ellen

------------------------------
Ellen Grealish
Co-founder/Partner
FlexProfessionals LLC
Fairfax VA
(703) 854-1820

Original Message:
Sent: 09-17-2020 07:04
From: Jay Mattern
Subject: Client trying to determine how much admin support is needed

Interesting dilemma. Are all of these people working on the same physical location? How many non-billable staff members do they have now? What is the growth trajectory of the business? What function would added admin staff perform?

I suppose you can look at the percentage of admin staff to total wages and/or as a percentage of gross profit (probably a better measure). Determine what level of admin expense is tolerable and/or develop a measure that fixes admin support % to revenue growth %.

------------------------------
Jay Mattern
CEO
Villing + Company
South Bend IN
(574) 277-0215

Original Message:
Sent: 09-16-2020 12:31
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Looking for some guidance for a client and hope you can chime in with your expertise. A financial services firm with 4 partners and 65-70 employees is wondering how many support staff/admins are typical for this size group.   My understanding is they are understaffed in this area but reluctant to bring on additional "non-billable hour" employees. Most of the employees are accountants/financial planners who don't require a significant amount of assistance. Do any of you know if there is a particular formula or strategy in place for determining the right answer? I know this answer can vary based on the partners and employees needs, but any general guidance/suggestions would be appreciated. Thank You

------------------------------
Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------

Hi Ellen,

This article from CPA Practice Advisors might help. https://www.cpapracticeadvisor.com/firm-management/news/12028310/how-much-admin-expense-should-accounting-firms-incur. 

And, this one too: https://fpadvance.com/overhead_percentage/

Wishing you the best. 

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Patricia Hampton CSP
VP/Managing Partner
Nonprofit HR
Washington DC
(202) 644-7423
------------------------------

Original Message:
Sent: 09-16-2020 12:31
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Looking for some guidance for a client and hope you can chime in with your expertise. A financial services firm with 4 partners and 65-70 employees is wondering how many support staff/admins are typical for this size group.   My understanding is they are understaffed in this area but reluctant to bring on additional "non-billable hour" employees. Most of the employees are accountants/financial planners who don't require a significant amount of assistance. Do any of you know if there is a particular formula or strategy in place for determining the right answer? I know this answer can vary based on the partners and employees needs, but any general guidance/suggestions would be appreciated. Thank You

------------------------------
Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------

Hello Patricia,
Thank you so much for your quick response. I will go ahead and look through those articles. I really appreciate your help!
Ellen

------------------------------
Ellen Grealish
Co-founder/Partner
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------

Original Message:
Sent: 09-17-2020 07:53
From: Patricia Hampton
Subject: Client trying to determine how much admin support is needed

Hi Ellen,

This article from CPA Practice Advisors might help. https://www.cpapracticeadvisor.com/firm-management/news/12028310/how-much-admin-expense-should-accounting-firms-incur. 

And, this one too: https://fpadvance.com/overhead_percentage/

Wishing you the best. 

------------------------------
Patricia Hampton CSP
VP/Managing Partner
Nonprofit HR
Washington DC
(202) 644-7423

Original Message:
Sent: 09-16-2020 12:31
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Looking for some guidance for a client and hope you can chime in with your expertise. A financial services firm with 4 partners and 65-70 employees is wondering how many support staff/admins are typical for this size group.   My understanding is they are understaffed in this area but reluctant to bring on additional "non-billable hour" employees. Most of the employees are accountants/financial planners who don't require a significant amount of assistance. Do any of you know if there is a particular formula or strategy in place for determining the right answer? I know this answer can vary based on the partners and employees needs, but any general guidance/suggestions would be appreciated. Thank You

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Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------

Good Morning Ellen,
I had a boutique investment bank client with 5 partners and about 60 other employees. The firm over the years went from one admin per partner to 2 for the partner team. They had two admins for the balance of the team as they moved toward a more self-sufficient employment style. Many of the former admin tasks (correspondence, travel and meeting planning, presentation preparation, client follow up management etc) were redistributed. The created a shared services model that had the harder to find skills like software skills for presentations/marketing, CRM into the shared services model. They found that will the right blend of technology they could reduce headcount. Hope this helps. Laurie

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Laurie Bradley
CEO
Flexible Support Group
Deerborn MI
(415) 391-4320
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Original Message:
Sent: 09-16-2020 12:31
From: Ellen Grealish
Subject: Client trying to determine how much admin support is needed

Looking for some guidance for a client and hope you can chime in with your expertise. A financial services firm with 4 partners and 65-70 employees is wondering how many support staff/admins are typical for this size group.   My understanding is they are understaffed in this area but reluctant to bring on additional "non-billable hour" employees. Most of the employees are accountants/financial planners who don't require a significant amount of assistance. Do any of you know if there is a particular formula or strategy in place for determining the right answer? I know this answer can vary based on the partners and employees needs, but any general guidance/suggestions would be appreciated. Thank You

------------------------------
Ellen Grealish
FlexProfessionals LLC
Fairfax VA
(703) 854-1820
------------------------------