How much is your firm currently profiting off your work? What’s your hourly rate x hours billed and how does that compare to your salary?

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Posting as :
works at
You are currently posting as works at

general rule or thumb is you earn approximately 1/3 of what you bill during the year (total hours x rate)

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You do realize it's not all profit - there's plenty of overhead. Think of all the costs you have to run a home and taxes you have to pay personally. The firm has those same costs plus things like malpractice insurance and workers' comp insurance. Then there's the pay for the staff who don't bill: reception, assistants, file clerks, etc. These people all do a multitude of tasks to make your life easier so you can focus on billable tasks.

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Yes, I understand that. Was more so curious how hourly rate & hours billed compares with salary.

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