Client Development question! When you are developing a fee estimate, do you try to stay around a certain % of the clients gross revenue? Let’s say you are going after their tax compliance, tax planning and consulting, and payroll. I feel like 1% of total revenue is fair for small businesses up to $2 million in revenue. I think that % drops for larger clients. For reference, I’m at a regional firm. So don’t be throwing out Big 4 fees 😂 My firm has minimums, so that helps.

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Stepping back for a minute, you don’t want to limit yourself this way. The client could only have 2m in revenue but for some reason, a hyper complex structure. A company with 200m in revenue could do business under one c-corp in one state and be less complex than the company with 2m in revenue. Review the PY returns and make a decision based on time spent to prepare and review.

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Great thoughts. It does all come down to complexity and time in it.

You want 20k for a $2 million in revenue business? I guess you might be able to get their with payroll.

Depends on the business and whether or not that is the clientele you want to serve. I would set a fee minimum and then determine if the prospect has the complexity for the services you offer.

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