Professional Fees Earned Budget for a Service Company Lundquist & Fretwell, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending May 31, 20Y8: Billable Hours Audit Department: Staff 25,000 Partners 6,000 Tax Department: Staff 40,000 Partners 8,500 Small Business Accounting Department: Staff 5,000 Partners 500
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Professional Fees Earned Budget for a Service Company
Lundquist & Fretwell, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending May 31, 20Y8:
| Billable Hours | |||
| Audit Department: | |||
| Staff | 25,000 | ||
| Partners | 6,000 | ||
| Tax Department: | |||
| Staff | 40,000 | ||
| Partners | 8,500 | ||
| Small Business Accounting Department: | |||
| Staff | 5,000 | ||
| Partners | 500 |
The average billing rate for staff is $140 per hour, and the average billing rate for partners is $450 per hour.
Prepare a professional fees earned budget for Lundquist & Fretwell, CPAs, for the year ending May 31, 20Y8.
| Lundquist & Fretwell, CPAs | |||
| Professional Fees Earned Budget | |||
| For the Year Ending May 31, 20Y8 | |||
| Billable Hours | Hourly Rate | Total Revenue | |
| Audit Department: | |||
| Staff | |||
| Partners | |||
| Total | |||
| Tax Department: | |||
| Staff | |||
| Partners | |||
| Total | |||
| Small Business Accounting Department: | |||
| Staff | |||
| Partners | |||
| Total | |||
| Total professional fees earned |
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