Quote:
Originally Posted by moncton golden flames
all assumptions. out biggest expenses after wages are probably a large format printer, which ends up being paid for by the clients anyway, enmax and shaw bills. we might have $50,000 of overhead annually.
me and my co-worker figure that there is about $200,000 profit this year, and somehow the company is running paycheck to paycheck.
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There are probably a lot more expenses than that. Typically an employee costs about 2 to 3 times their salary once you include benefits (presuming you get them), vacation, office space, accounting/human resources time, etc., though it varies depending on what sort of benefits you get. In some businesses insurance can also be a huge cost. I don't know how your company is set up, but most companies have some employees that don't directly bring in money (e.g. administrative support), and their salaries have to come out of the money brought in by those who do. The company probably also needs to pay various external people like their accountant, lawyer, etc. which can add up. Edit - almost forgot one of the biggest, taxes.
25% does sound a bit low, but if the boss is only bringing in $100,000 then there may be a lot of other expenses you aren't aware of.