© 2015 – Gould + Partners 1 How Do Your Billing Rates & Practices Stack up? A Best Practices Webinar Rick Gould, CPA, J.D. Counselors Academy of PRSA June 25, 2015

© 2015 – Gould + Partners 2 1.How do your Billing Rates Stack up? me for full report out by Mid-July 2.How do your Utilization Stats Stack up? me for full report out by Mid-July 3.Alternative Billing Methods Methods Rebillables 4.Insights and advice Webinar Deliverables

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5 Total Labor Cost – 50% 1700 Hours annually of available client time 90% productivity = hours billed THE GOAL

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7 BILLING RATES 2015 SURVEY U.S. and Canada

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10 1.Billing Rates By Size 2.Billing Rates by Region 3.Billing Rates by Specialty How to use our Charts

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© 2015 – Gould + Partners 13 $4.5 Million Sports/Entertainment firm based in L.A. Utilization- Same Approach Example: Extract On To One Schedule

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© 2015 – Gould + Partners 19 Raise Fees when give raises Retainers- Managing effectively to improve profitability Billing rates should be market rates- never lower G+P Annual Billing Rates Report Lowballing- Don’t Do It!! Raising Fees

© 2015 – Gould + Partners % Mark-up Ad Agency Model 10%, 15%, 20% Mark-up % of fee invoice 5% - 6% for routine OOPS average 3% - 8% was range of firms responding Recovering Rebillables

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© 2015 – Gould + Partners 22 Baseline Hours = “Available” Client Hours 40hrs/wk x 52 = 2,080 less Vacation, Holidays, personal etc. Billable Hours= Hours Billed Goal = 1,530 Utilization Rate- Billable Hours Baseline Hours Goal = 90%+ Utilization Definitions

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CONTACT Rick Gould, CPA, J.D. Managing Partner Gould + Partners One Penn Plaza Suite 5335 New York, NY (Cell) © 2015 – Gould + Partners 29