ASA Central Network

communities_1.jpg
  • 1.  Client trying to determine how much admin support is needed

    Posted 09-16-2020 12:32
    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
    ------------------------------
    Avionte post ad


  • 2.  RE: Client trying to determine how much admin support is needed

    Posted 09-17-2020 07:04
    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
    ------------------------------

    Avionte post ad


  • 3.  RE: Client trying to determine how much admin support is needed

    Posted 09-17-2020 08:00
    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
    ------------------------------

    Avionte post ad


  • 4.  RE: Client trying to determine how much admin support is needed

    Posted 09-17-2020 08:18
    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
    ------------------------------

    Avionte post ad


  • 5.  RE: Client trying to determine how much admin support is needed

    2020 Staffing World Presenter
    Posted 09-17-2020 07:54

    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
    ------------------------------

    Avionte post ad


  • 6.  RE: Client trying to determine how much admin support is needed

    Posted 09-17-2020 08:01
    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
    ------------------------------

    Avionte post ad


  • 7.  RE: Client trying to determine how much admin support is needed

    Posted 09-17-2020 09:07
    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

    ------------------------------
    Laurie Bradley
    CEO
    Flexible Support Group
    Deerborn MI
    (415) 391-4320
    ------------------------------

    Avionte post ad