Consulting Fees: A Guide for Independent Consultants Written by long-time marketing consultant Andrea Coutu, MBA, and founder of www.ConsultantJournal.com Consultants, freelancers, coaches, instructors, advisors, lawyers, accountants, professional services firms and other business owners have turned to this ebook. Withdrawn. CEO of SAA says spending on consultants is crucial to turnaround strategy, Following widespread outcry in the media and amongst the general public around the recent expenditure levels at South African Ariways – including a R25 million contract with Deutsche Bank for restruc. These rules will come into effect on … Based on available data in the market* Consultancy.co.za presents a simplified and indicative view of fees in the consulting market: The figure uses the revenues pe consultant per annum as a proxy for average rates and the number of consultants as a proxy for firm size. If consulting fees are not deductible under section 11(a) of the Act, recognition must be given to the capital gains tax legislation and the provisions made for the establishment of a taxpayer s base cost. Back to Town Square. But if there are a slew of competitors in your area, you may have to lower your prices to stay competitive. Strategy Boutiques, high-end firms that have a national/regional focus, follow in terms of rates. Track My Consultant Tax Deductions Now. INTRODUCTION WHEREAS . 2012 Fee Scales: Architects Fees Calculator: 2012 Fee Scales. The hourly cost of consulting fees range from about $45 to $150 per hour. Department of Transport. Types of Services Offered: I have worked in the non-profit sector for over 16 years and am passionate about … 6.1 CPUT shall pay the Consultant fees as stated in the Contract Data in respect of the service rendered. Determine the consultancy option/model by applying the folllowing criteria: "Short Term" means less than 60 consulting days "Long Term" means more than 60 consulting days "All Overheads" means consultant provides all … Retainers. In particular, the high hourly rates billed by the most prestigious consultants in the marketplace tend to invite debate. They are, therefore, entitled to charge whatever they feel they are worth and what the market bears. * Market information from representative bodies in the consulting industry, reports from analyst firms, management and consulting books and desk research from Consultancy.africa, based mainly on data publicly available from government contracts and interviews with (senior) consultants. La Liga and Sevilla FC are set to provide economic and sports management support to Tanzanian football club Young Africans Sports Club (Yanga S.C. Independent humanitarian consultants in Africa fear job and funding cuts. A consultant is a recognized authority or specialist in a specific field, engaged by the Organization in … The definition of consulting is being "engaged in the business of giving expert advice to people working in a specific field.". That’s because every time you write off an expense, you lower your taxable income – putting the money you spend on your business back in your pocket. In essence, there is no ceiling to the hourly rates consultants can charge (with some exceptions in the public sector). How does the Independent Security Consultant South Africa provide our clients with control of their security? Consultants have become a necessity in South Africa’s changing business landscape. Covid-19 could spell disaster for Ghana's budding economy, Deloitte has revised its 2020 GDP growth estimates for Ghana from just under 7% to less than 3% in light of the Covid-19 crisis, as the country’s economy faces disruptions from a variety of direction. Consulting firms across the globe regularly come under scrutiny for the fees they charge their clients. There are three categories, namely: foreign employees of foreign organisations working in South Africa: foreign residents employed in South Africa by a South African employer: independent consultants engaged by a South African employer. This initiative was based on a request of Cabinet following perceptions that the South African McKinsey's Generation Kenya helps keep education going during lockdown. Consulting firms across the globe regularly come under scrutiny for the fees they charge their clients. It sets and maintains standards for these professions in South Africa. Before you decide, know the tax implications between the two options as they differ significantly. In the U.S., small business consulting fees range from $95 to $1,500, with an average cost of $399. Consulting firms – especially those active in the higher segments of the market – do not unveil their fee structure. As you work in a particular field you can offer your expertise to help others in the field that you know best, however, you need the ability to sell your skills. 6.3 The CPUT and the Consultant acknowledge and agree that the Consultant fees are based on the following non exhaustive parameters; In addition, fees commonly vary per region/client/service offering, so firms keep tight control over their fee structure to minimise the threat of reputation risk, public debate or having to renegotiate their fees with clients. Differences in firms, market segments and service offerings across regions and countries, for instance, will inevitably lead to exceptions in the typology. A consultant is an individual who is a recognised authority or expert in a professional field, with special skills or knowledge not possessed by ITC staff. The base cost legislation currently provides for the inclusion of amounts actually incurred directly relating to the remuneration of consultants for services rendered. Continuing from the previous slide, 20% … As a result, there is relatively little information available publicly on the fees and rates charged by consultants. Information for independent consultants. No matter how high his fees or how busy his consulting schedule, the independent consultant will not be successful if he doesn't get paid. Now that we’ve covered the four best methods for setting your consulting fees, let’s take a quick look at what consultants are charging on average across five of the most popular independent consulting industries. The latest news, consulting firms, jobs & internships, events and updates for consultants in the Africa. National / Regional Functional Specialists position themselves, in terms of rates, similar to the Big Four and their larger global counterparts, although their exact fee structure will depend on their reputation and track record, functional focus and service portfolio among other factors. DPSA GUIDE CONSULTANT FEES; DPSA FEES; ECSA will not be publishing any disbursements for 2016. It sets and maintains standards for these professions in South Africa. How to Choose Your Perfect Niche. Your income must be coded to 3616 on your IRP5. Quickly find the best offers for Consultancy opportunities in africa on the Star classifieds. 1.1. If you don't have a package of services set up, this may be the best way to start until you get a better idea of what your clients will want. You're a "sole proprietor" tax filer as an independent consultant, unless you've taken steps to establish yourself as another type of business entity. “Although boasting a rich set of skills and experience originating in Big 4 corporations, Tax Consulting South Africa was founded to overcome the limitations of large, multidisciplinary practices with too much on their plates and too focused on their own growth. 1.2. This is best done with marketing—but as always, the best marketing is organic marketing. PwC Kenya’s Head of Regulatory, Compliance and Advisory Joseph Githaiga has addressed some of the concerns surrounding privacy and regulatory violations during the Covid-19 crisis. The Institute is the professional body representing management consultants, business, executives and leadership coaches. You are NOT an Independent Contractor. Contracts can also help encourage cash flow, if they include early payment clauses. This is our 3rd straight year doing the Consulting Fees study. The key question is: what fees do consultants charge? As an independent consultant, you can save hundreds, or even thousands, of dollars at tax time by deducting business expenses. The consultancy industry is one of the most diverse markets within the professional services industry, and, therefore, a number of different types of consultants are found in the industry. Through this, the client will be guaranteed a truthful and unbiased view and full analysis of their actual physical security status. You have got an offer from a company to either join as an employee or a consultant. Background . The key question is: what fees do consultants charge? They're required to pay estimated taxes quarterly. The Company wishes to appoint the Consultant to provide the service. Global Functional Specialists – such as Hay Group, Mercer and Willis Towers Watson (focus on HR) or FTI Consulting and Navigant (focus on financial advisory) – typically have a revenue per consultant between $300,000 (R4 million) and $400,000 (R5.5 million) per year. Accurate, reliable salary and compensation comparisons for South Africa Note that the average fees of the purely management consulting practices (e.g. Consultancies regard their rates as one of their key competitive assets and, therefore, manage their fee structure as a 'trade secret', similar to salaries, which are also shrouded in secrecy. Many consultants work on a retainer system, which is great if you can win signed contracts. Select more than 150 countries: Market segments. Email: sam@fatcatfundraising.co.za. We recommend you consult the following Government Departments respectively: Department of Public Works. First, understand that there is no universal "best niche". Lastly, Independent Contractors comprise the large group of self-employed consultants active in the industry. Their annual fee income can range from anywhere below $50,000 (R700,000) a year (for operational support) to above $400,000 (R5.5 million for executive consultancy/interim). But don’t lower your fee. The slightly larger difference in their rates compared to technology players is explained by the full suite of service they offer, varying from Accounting and Tax to Consulting and Corporate Finance, as well as from price differentiation used for SME services. To calculate your consulting retainer fee, you would basically do it in the same way as project rates i.e. The Small and Mid-size Technology Players tend to have comparable rates, yet vary in size, ranging from small local players to large mid-sized firms with thousands of employees. What is known, though, is that rates can differ widely, from an hourly rate of R250 for an interim consultant working on an operational level to R1400 or more per month for a consultant from a leading strategy consulting firm. Lastly, Independent Contractors comprise the large group of self-employed consultants active in the industry. INDEPENDENT CONTRACTOR AGREEMENT. TaxTim says: 11 July 2016 at 11:55 Are you freelancer? This desire for constant progress is a fundamental part of the human condition. Accurate, reliable salary and compensation comparisons for South Africa Every time you successfully complete a project, increase your hourly rate by $25. National / Regional Functional Specialists position themselves, in terms of rates, similar to the Big Four and their larger global counterparts, although their exact fee structure will depend on their reputation and track record, functional focus and service portfolio among other factors. Cell Number: 082 447 0989. Consultants are notorious for undercharging — especially when they charge by the hour. If you feel like it is too low, raise it. 1.3. Lastly, Independent Contractors comprise the large group of self-employed consultants active in the industry. Global Functional Specialists – such as Hay Group, Mercer and Willis Towers Watson (focus on HR) or FTI Consulting and Navigant (focus on financial advisory) – typically have a revenue per consultant between $300,000 (R4 million) and $400,000 (R5.5 million) per year. Consultants perform result-orientated tasks of a temporary nature for which there is no continuing need in the Organisation and which the Organisation is unable to meet from within the staff. Click the order link below now. What is known, though, is that rates can differ widely, from an hourly rate of R250 for an interim consultant working on an operational level to R1400 or more per month for a consultant from a leading strategy consulting firm. You may deduct your business related expenses. Sole proprietors are required to report and file their business taxes with their personal income taxes. Andersen Global enters several African markets. 1. This Note therefore does not apply to non-executive directors. 2. Average Consulting Fees in 5 Popular Industries. Fat Cat Fundraising Consultants. Accenture Consulting or Capgemini Consulting) are significantly higher, generally comparable to the range of Functional Specialists and the Big Four. Consulting firms – especially those active in the higher segments of the market – do not unveil their fee structure. You are NOT an Independent Contractor. A majority of the consultants in South Africa work as independent advisors / freelancers – the rest of the advisors work at consulting firms, from mammoths to tiny boutiques. Your employer should be deducting PAYE (employee's tax) from you every month based on the normal tax tables. Some consultants offer discounts for retainer fees as they’d prefer the consistent income over hourly or per-project invoices. Three types of firms find themselves in the consultant revenue range between $150,000 (R1 million) and $220,000 ( R3 million) per year. Most beginning consultants use a daily rate or hourly rate structure. You can price by the hour, the day, by project or with a retainer. Accountancy, Audit) or operational disciplines within IT Consulting. The type of consulting work you specialize in will affect your consulting fees, and there are two general buckets you can fall into: Strategy consultants focus on high-level business objectives and growth strategies, and channel their efforts on beating the competition. Their annual fee income can range from anywhere below $50,000 (R700,000) a year (for operational support) to above $400,000 (R5.5 million for executive consultancy/interim). We collected up to 172 ads from hundreds of job boards for you! Human Resources (HR) Consulting Services - Hourly Rate - Get a free salary comparison based on job title, skills, experience and education. How to determine the appropriate fee rate 1. Guide on Hourly Fee Rates for Consultants 3 1 Introduction The Department of Public Service and Administration (DPSA) conducted a study on the use of consultants in the Public Service in 2001. Contact: Samantha Atrash. A further (large) group of consultants work as an internal consultant at organisations outside the consulting industry. In addition, fees commonly vary per region/client/service offering, so firms keep tight control over their fee structure to minimise the threat of reputation risk, public debate or having to renegotiate their fees with clients. The hourly cost of consulting fees range from about $45 to $150 per hour. Typically, the strategy and management consulting practices of the Big Four sit at the top-end of their fee model, while lower hourly rates are billed by lower value-adding services offered by other business units (e.g. Order Consulting Fees: A Guide for Independent Consultants. Legal Consultant jobs now available. * Market information from representative bodies in the consulting industry, reports from analyst firms, management and consulting books and desk research from Consultancy.co.za, based mainly on data publicly available from government contracts and interviews with (senior) consultants. Contact Details : Training courses, seminars Labour Law and IR Related Workshops (012) 661 3208 Peraldo : or Hanlie: Manager: Susan Brits . Value-based pricing is becoming more popular. Keep in mind that the fees you'll pay can vary depending on where you live, the specific services you need and whether you need one-time or ongoing consulting. The purpose of this Guide is to provide for standardised hourly fee rates of consultants appointed in the Public Service. Nigeria Saudi Arabia South Africa United Arab Emirates. They are, therefore, entitled to charge whatever they feel they are worth and what the market bears. The consulting fee is also based on demand, so if there are very few consultants who can do what you do, you can typically charge higher rates. Website: www.fatcatfundraising.co.za. ISCSA an independent security consultant will conduct a Physical Security & Threat Audit & Assessment on the client’s property. First, ensure that you meet the IRS requirements to qualify as an independent consultant or contractor. In particular, the high hourly rates billed by the most prestigious consultants in the marketplace tend to invite debate. Some consultants actually offer a percentage reduction in their fees if a client will agree to pay a monthly retainer fee. Average Restaurant Consulting Fees Consultancies regard their rates as one of their key competitive assets and, therefore, manage their fee structure as a 'trade secret', similar to salaries, which are also shrouded in secrecy. The Ultimate Guide to Consultant Tax Deductions As an independent consultant, you can save hundreds, or even thousands, of dollars at tax time by deducting business expenses . This service is available to registered users only. How to determine the appropriate fee rate 1. How to Establish Your Consulting Fees Consultants / Individual Contractors UNDP frequently engages experts under individual contracts to work on short-term projects either as a consultant or an individual contractor. 6.2 The Consultant fees shall include all disbursements and be VAT inclusive. Determine the consultancy option/model by applying the folllowing criteria: "Short Term" means less than 60 consulting days "Long Term" means more than 60 consulting days "All Overheads" means consultant provides all overheads e.g., office, parking, telephone "Partial Overheads" means department provides some overheads e.g. 1. The Big Four – Deloitte, PwC, EY and KPMG – compete in the same range, but also offer lower fees in some services areas. You are an Independent Contractor, BUT SARS will want your employer to deduct PAYE (employee's tax) at 25%. Title: Fees April 2018.xlsx Author: Etienne Created Date: 6/14/2018 12:14:53 PM Area of operation: Johannesburg Northern and Eastern Suburbs. It is important to keep in mind that the above analysis from Consultancy.co.za presents a simplified and indicative view of rates.