Industry benchmarks suggest that professional accounting fees should range between 1-2.5% of a company’s revenue, depending on the size of the organization. A smaller company should expect to pay a higher percentage in fees compared to a larger company, due to economies of scale.
This theory mirrors the same strategy used by investment advisors. The more money you have available to invest, the less you pay as a percentage of investable assets. In other words, someone who has $1M in investable assets can expect to pay a 1% fee to their investment advisor ($10,000). However, someone who has $10M to invest can expect to pay a fee of .5% or $50,000.
Treating professional accounting fees as an investment rather than a cost ensures businesses have the financial clarity needed to thrive. Keeping fees within the 1-2.5% range of revenue strikes the right balance between cost efficiency and strategic financial management.
At Marjiam, we collaborate with various public accounting firms to offer small-business owners’ comprehensive financial solutions by combining the expertise of the accounting firm with our strategic guidance. This partnership enhances financial insight, optimizes tax strategies, and drives long-term business growth.
Together, we create a seamless, integrated approach to financial management that positions businesses for success.
