Accountants Profit Target (Daily) Calculator Examples
Worked examples showing daily fee-income and realised hourly-rate targets for different accounting practice planning scenarios.
These examples show how profit goals, overheads, variable costs and available billable time can change an accounting firm's revenue target. They are illustrative business-planning estimates rather than forecasts.
Established small practice with a £100,000 profit goal
Standard annual planning scenario for a small owner-managed practice.
Input Summary
Annual profit target
£100,000
Fixed overheads
£150,000
Variable costs
20%
Billable days
220
Billable hours per day
6
Calculation Breakdown
- 1Contribution margin1 − 20%80%
- 2Annual revenue target(£100,000 + £150,000) ÷ 0.80£312,500
- 3Daily fee-income target£312,500 ÷ 220£1,420
- 4Realised hourly rate£1,420 ÷ 6£237
Result Summary
Realised hourly rate
£237
Accountants Profit Target (Daily) Calculator
The estimated target is £312,500 annual revenue, £1,420 per billable day and £237 per billed hour.
Lower-overhead solo accountant
A solo firm allowing substantial time for administration and business development.
Input Summary
Annual profit target
£60,000
Fixed overheads
£40,000
Variable costs
10%
Billable days
180
Billable hours per day
5
Calculation Breakdown
- 1Contribution margin1 − 10%90%
- 2Annual revenue target(£60,000 + £40,000) ÷ 0.90£111,111
- 3Daily fee-income target£111,111 ÷ 180£617
- 4Realised hourly rate£617 ÷ 5£123
Result Summary
Realised hourly rate
£123
Accountants Profit Target (Daily) Calculator
The estimated target is £617 per billable day and £123 per billed hour.
Growing practice using subcontractors
A firm that uses subcontractors for part of its client work.
Input Summary
Annual profit target
£180,000
Fixed overheads
£320,000
Variable costs
30%
Billable days
230
Billable hours per day
12
Calculation Breakdown
- 1Contribution margin1 − 30%70%
- 2Annual revenue target(£180,000 + £320,000) ÷ 0.70£714,286
- 3Daily fee-income target£714,286 ÷ 230£3,106
- 4Realised hourly rate£3,106 ÷ 12£259
Result Summary
Realised hourly rate
£259
Accountants Profit Target (Daily) Calculator
The estimated target is £714,286 annual revenue, £3,106 daily revenue and £259 per billed hour.
How to Read Your Results
Annual revenue target is the estimated revenue needed before variable costs to support the profit goal and fixed overheads.
Daily fee-income target is an average across billable days, not a minimum invoice value for every day.
Required average hourly rate is a realised rate across delivered work, including the effect of discounts and write-offs.
Compare the output with actual billed hours and collected revenue, not only quoted prices.
Use different scenarios to test the sensitivity of available billable time and variable costs.
Assumptions & Important Notes
- All example figures are in pounds and are illustrative only.
- Variable costs are treated as a constant share of revenue.
- Billable days and hours are assumed to be achievable averages.
- The examples exclude tax, financing costs and unusual one-off events.
Related Examples
Frequently Asked Questions
Can fixed-fee accounting firms use these examples?
Yes. The daily fee-income target can be compared with the value of recurring monthly fees, annual work and projects expected to be delivered.
Should I use invoiced or collected revenue?
The calculation is a revenue-planning model. For cash planning, collection timing should be reviewed separately.
How can I make the daily target lower?
In the model, lower overheads or variable costs, more billable days, or more billable hours reduce the daily target. Whether those changes are practical depends on the practice.
Is £237 the rate to charge every client?
No. It is an average realised rate across all billable work. Individual service prices can be above or below it.
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