How Much Overhead Is Too Much?

Plus a tip for increasing revenue if needed.

By Ed Mendlowitz

QUESTION: Are there any rules of thumb for a CPA firm’s overhead and salary costs?

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ANSWER: The Rosenberg Survey has excellent metrics and is highly recommended. On a less scientific basis you can use as a general rule of thumb 1/3 for salaries, 1/3 overhead, 1/3 partners salary.