Price small CAM files with a clear model
Small CAM files can hide large labor costs.
Do not guess at profit. Measure each work step. Then compare total cost with your client fee.
A lease trade journal covers ASC 842 setup time and cost. It does not measure CAM file labor.
That gap matters. Log your firm's own time for each work group.
Count all work
Track six labor groups.
| Work group | Firm input |
|---|---|
| Intake | Measured minutes |
| Base review | Measured minutes |
| Exception review | Expected minutes |
| Signoff | Measured minutes |
| Delivery | Measured minutes |
| Rework | Expected minutes |
Multiply time by each role's loaded cost. Use your firm's payroll data. Do not use a market average.
NetSuite splits math and entries in lease accounting. Your CAM model should split work too.
Review the lease accountant pillar before setting the model. Compare this offer with other firm growth choices.
Add direct costs
Add the audit cost for each file.
CAMAudit packs currently cost:
| Pack | Pack price | Cost per audit |
|---|---|---|
| 10 audits | $490 | $49 |
| 100 audits | $3,900 | $39 |
| 1,000 audits | $29,000 | $29 |
These are public catalog prices. Check live pricing before quoting work.
Add other direct costs too. Examples include storage or outside review. Use only costs your firm actually pays.
Find file profit
Use this original model:
Client fee - labor cost - direct cost = file profit
Next, divide file profit by the client fee. That gives the file profit rate.
This is a planning model. It is not market data. Your firm chooses its own target.
Set four outcomes
Give the model four clear results.
| Result | Firm action |
|---|---|
| Accept | Scope and fee meet your target |
| Batch | Similar files may share setup work |
| Rescope | Narrow the work before approval |
| Decline | Cost exceeds the approved limit |
Use the accounting firm page when choosing an outcome. Keep the client answer in the firm's hands.
Do not lower review quality for a small file. Change scope or price instead.
Test one example
This example uses assumptions. It is not a client result.
Assume a $900 client fee. Assume $420 of labor. Add one $49 audit.
The file profit is $431. The file profit rate is about 48 percent.
Now test more review time. Add $200 of senior review. File profit falls to $231.
This shows the key risk. Exception time can change the margin call.
Gate the file before a quote
The model needs a ready file. Do not quote from a client story alone.
Check these facts first:
- The signed lease is held.
- Each lease change is held.
- The CAM statement is held.
- The CAM year is clear.
- The client goal is clear.
- One reviewer owns the file.
Mark each gap. A missing file may add staff time. It may also change the work scope.
Run the document request SOP before setting the quote. Price only the source set the firm can name.
Use the lease summary as a map only. The signed lease still controls the review.
If the source set is weak, quote a file screen. Do not quote a full review yet.
Track cost as work happens
Open one cost card for each file. Keep planned time and actual time apart.
Use these fields:
| Field | Firm entry |
|---|---|
| Staff owner | Named person |
| Planned minutes | Firm input |
| Actual minutes | Time record |
| Review changes | Added work |
| Direct cost | Paid cost |
| Client fee | Approved fee |
| File profit | Model result |
Update the card after each work stage. Do not wait until the client call.
The card can show where profit changed. It can also show which file gap caused more work.
Use your own pay and time facts. Do not treat this card as a market rate.
Compare planned time with actual time at close. Note which stage ran long. Use that firm fact on the next quote.
Apply the quality control rubric before closing the card. A missed review step belongs in actual cost.
Keep old cards. They can show whether one scope rule needs work. Do not turn a few files into a broad claim.
Price each scope change
Small files can grow after the first look. New sites or years may appear. A legal question may appear too.
Use one change note. Name the new fact and added work. Then pick one action:
- Keep the fee and cut the scope.
- Add a fee for the new scope.
- Move the file into a batch.
- Hold the file for more proof.
- Decline the new work.
The lease accountant approves that choice. Staff should not hide added work inside the first quote.
Send the client a plain scope note. State what changed. State what the new output will include.
If the firm adds this offer, use the service line guide. Set scope and fee rules before taking client work.
Review the client packet
The final packet should back the fee. It should also back the client answer.
Keep these items together:
- Signed source files
- File cost card
- Review work paper
- Source pages
- Branded report
- Signed client note
Keep each past cost card. It shows which file traits changed actual effort.
Check the math again before signoff. Make each open gap easy to see. Remove any outcome promise.
Use the source cite rules on every review item. Keep the partner signoff sheet beside the final cost card.
At delivery, follow the review-and-sign model.
Staff shows cost and proof. The lease accountant gives the client answer.
Send legal questions to counsel. Counsel owns legal advice. Keep that advice apart from the audit file.
Where CAMAudit fits
Put the current CAMAudit cost in the direct-cost row. Your firm still sets labor and fees.
CAMAudit runs the analysis before the report unlock. Your lease accountant reviews that result first.
One credit then unlocks the branded CAM audit.
Lease accountants review fixed math and source lines.
A dispute letter draft may follow. Your firm uses a review-and-sign step.
Treat it as a draft for review. It is not legal advice. Have counsel review before sending.
Use the model
Plan credit use. Define the scope boundary.
Map the needed fields. Browse the accounting hub.