Join us for this month’s ARE Live all about firm financial documents. Guest experts Hayley Pugh and Emily Epple will be joining Chris to talk through what you need to know about firm financial documents and how to evaluate the financial health of a firm.
We’ll be wrapping up this episode with a live Q&A, so make sure to drop your questions in the thread below!
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Designing an Architecture Career: Alternatives to Traditional Practice
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Hello, could you please place the scenario next to the questions while you are answering them? We cannot remember the scenario. Thank you!
Hi everyone, here is the scenario we’re working off of so you can reference as we continue to work through these questions!
Hayley, Emily, and Chris are creating a new architecture firm together. Their experience and qualifications are listed below:
- Hayley - Missouri and Louisiana Registered Architect with experience on commercial projects, historic rehabilitation, and coastal sustainability.
- Emily - Illinois and Indiana Registered Architect, with workplace and residential experience. Currently working and living in New York and seeking license reciprocity there.
- Chris - New York Registered Architect, with experience in mixed-use and residential projects in the New York metropolitan area.
The team wants to primarily pursue projects that match their skill set, respond to RFPs in order to gain new projects, and plans to hire employees in their first year in order to round out their team’s capabilities.
The three architects have a network of preferred consultants in their area, and based on their past experience expect consultant costs to amount to 25% of the firm’s billings.
How do you determine what qualifies as indirect labor and what doesn’t?
What is a “bad debt allowance?”
Is there a good example of a PL document that could be studied to better understand the BE rate question?
Thanks! (It’s set aside for when an invoice isn’t paid…)
Thanks for posting the answer Nicole1
Can you educate us on percentage of firm ownership and how this can affect firm financials? Retirement, Dividends, and Business structure (LLC/S-Corp/Corp.) are some optional lens to explore this idea of how percentage of ownership could be affected.
What is the difference between indirect expenses and indirect labor?
Could you please go over the Net Multiplier formula again?
I’m definitely going to have to take annaccounting class…
Net Multiplier is BE Rate plus Net Multiplier (I think)
What is the best resource(s) to better understand these metrics?