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The Agency Owner’s Tax and Money Handbook
Eight chapters, one worked agency, every figure checkable. Kestrel Works runs six fee-earners, and the book follows the money through the rate card, the two leaks, the projects, the WIP cut, the bench and the year end.
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Who this workbook is for
Agency owners who price from the market
A £42,000 fee-earner costs £63,623 fully loaded, which is £55.61 an hour billable and £593 a day at a 25 per cent margin. A card built from cost is a policy; one built from the market is a rumour.
Anyone losing money on good work
The two leaks are measured apart because they need different medicine: £56,364 of unbilled capacity and £68,904 of writedowns, £125,268 together, more than a new client would have added.
Owners whose profit is a judgement call
The WIP cut, the freelancer accruals, the doubtful debts and the bonus decisions all sit in one chapter, because an agency year end is mostly cut-off with a tax bill attached.
