Current services offered by The Sorcerer’s Accountant include:
Tax Services:
Management/Cost Accountant Services:
QuickBooks Services
Current services are either provided entirely by Max Greenwood or available through resources on the The Sorcerer’s Accountant website. Greenwood will provide referrals to credit card processing companies or some speciality consultants when the need calls for it, but focuses his work on general small business services of use to the widest variety of businesses.
The Sorcerer’s Accountant intends to add the following bookkeeping services :
These bookkeeping services will be at a rate of $30 per hour/per bookkeeper for clients. Clients would pay $20 -$25, once benefits and taxes are factored in, for an in-house, part-time bookkeeper, and would still be responsible for training, oversight, and management in that case. The Sorcerer’s Accountant’s rate is very economical once this is taken into account.
The new services will be performed by part-time student bookkeepers who are current undergraduate accounting majors with up to 20 hours per week free to work. Each business will have a consistent bookkeeper assigned to it. The bookkeepers will be trained by Max Greenwood directly in proper techniques. They will all be students in the top 20% of their class with at least one professional recommendation and one educational (professor) recommendation. This is a business model which has been successful in other cities where there is ample student labor, such as New York City.
To add additional value, the bookkeeping manager, a graduate student pursuing an MBA in accounting, will supervise and audit the work of the bookkeepers, answering their questions when questions arise, and providing quality assurance. The bookkeeping manager will review the QuickBooks files and reports created by the bookkeepers to ensure that they follow proper formats and are prepared correctly.
The small business accounting market consists of virtually every small business in the United States. As businesses grow larger than one person sole proprietorships, they generally require expert help with at least their tax preparation, and often with additional bookkeeping and accounting services. Even many non-employer sole proprietorships will use accounting help at some point. While some small businesses hire bookkeepers or CFOs directly, many successfully outsource these types of services.
The accounting service market as a whole includes the following:
The market of small businesses in Chicago for The Sorcerer’s Accountant represents approximately 85,000 businesses in 2010. It has been divided into three groups:
Non-employer firms: Without employees, these firms do not have many of the concerns of larger businesses. However, the owners must be vigilant to protect their own tax liability and sort out how their personal and business tax returns intersect. These firms are generally buyers of QuickBooks services and tax preparation services. As they grow, this group becomes ripe for outsourced bookkeeping services before they can hire an full-time in-house bookkeeper.
Very small businesses: Made up of businesses that are designed to stay small and those which are growing through a phase, these businesses require payroll services, bookkeeping, and tax preparation. They are concerned about losing control, but can generally be convinced of using outsourced accounting and bookkeeping with cost analysis. With the stakes higher, these businesses can make greater use of management accounting services, especially as most cannot afford a dedicated CFO. Many do not need a full-time bookkeeper, but can make do with part-time help, which limits their hiring options.
Other small businesses: Many of these businesses will have some in-house financial management and bookkeeping help. However, they may be able to save money by outsourcing these services, as they are not generally core to what the business seeks to do. These businesses may be comfortable with their situation as a cash producer for their owners or intent on growing or positioning themselves for sale.
Market Analysis | |||||||
2010 | 2011 | 2012 | 2013 | 2014 | |||
Potential Customers | Growth | CAGR | |||||
Non-employer Firms | 4% | 50,000 | 52,000 | 54,080 | 56,243 | 58,493 | 4.00% |
Very Small Businesses (2 to 10 employees) | 4% | 25,000 | 26,000 | 27,040 | 28,122 | 29,247 | 4.00% |
Other Small Businesses (11 to 99 employees) | 4% | 10,000 | 10,400 | 10,816 | 11,249 | 11,699 | 4.00% |
Total | 4.00% | 85,000 | 88,400 | 91,936 | 95,614 | 99,439 | 4.00% |
The Sorcerer’s Accountant will focus on the “very small business” target group for its bookkeeping services as this group can make the most consistent use of part-time bookkeepers. The type of student bookkeepers whom these businesses would hire are generally students of the same kind. However, these businesses often do not have the resources to provide proper oversight or training to their bookkeepers, and will suffer from not having the leverage to hire the cream of the crop. The Sorcerer’s Accountant can provide the solution to these problems.
The small business accounting industry consists of numerous independent accountants and bookkeepers as well as many small firms. Larger firms tend to pursue medium and large business clients.
Accounting and bookkeeping services are purchased by owners and top managers of small businesses. They will contact businesses by phone and generally meet in person (at the client’s office) to interview and discuss the prospect of working together.
Major competitors in the Chicago market include:
For bookkeeping services, the business also must compete indirectly against the prospect of businesses hiring their own part-time bookkeepers. This gives businesses the advantage of greater control and perhaps development of a future full-time employee. If the hire works out, the cost can be lower for a business than an outside service. However, this can lead to employees who are not as well-educated or experienced as bookkeepers through a bookkeeping service who have worked with a range of businesses. Generally, the cost is lower in the long run with a bookkeeping service, as training is done more systematically and supervisors are more regimented and experienced.
To choose between competitors, factors considered by clients include:
The website for The Sorcerer’s Accountant presents a simple, uncluttered look which holds a great deal of information about services offered beneath its surface and beyond its homepage. The purpose of the website is to assure clients and potential clients of the expertise of the company and then inspire them to call for a phone or in-person consultation.
To redevelop the website for the new bookkeeping services to be offered, additional service pages will be created for each subset of the bookkeeping service as well as a main page presenting the value proposition and benefits to clients of the services. All areas will offer description to be clear about what services are and are not offered, but will be focused on client benefits.
To market the website, many of the current tactics will be maintained, but supplemented.
Most of these marketing activities will be executed by the marketing services firm contracted by Sorcerer’s Accountant as Greenwood does not have the time or expertise to execute them himself.
The website will be expanded with additional information about best practices of bookkeeping services. Max Greenwood will devote 40 hours to developing this content within two months of the launch of the service.
The website redevelopment will require the marketing service partner for the business to create new pages based on the template already set by the existing website. All copy will be written by Max Greenwood. Graphics and design elements will be added by the marketing partner. There is not a need for e-commerce, a back-end, or other functionality for the website.
To promote the business to its target of businesses with 2 to 10 employees, The Sorcerer’s Accountant will:
The Sorcerer’s Accountant will achieve a competitive edge among Chicago bookkeeping services due to its combination of CPA oversight with lower-level, inexpensive labor. Clients will receive the advantage of having a CPA review their books and propose additional advice when appropriate, while not paying much more than they would to hire their own part-time bookkeeper.
This is not an inimitable competitive edge, but the market in Chicago is large enough to allow for the success of Sorcerer’s Accountant with this strategy. Large firms ignore the small business market because they are better positioned to serve larger businesses. They are unlikely to imitate this strategy as they will find it difficult to convince small businesses that they can offer services which are affordable to them.
The Sorcerer’s Accountant will use the following marketing tactics to reach its target market of very small businesses (2 to 10 employees) with its new bookkeeping services:
The marketing messages will focus on the economics of the decision to use outsourced bookkeepers from The Sorcerer’s Accountant and the advantage of CPA oversight with Greenwood’s experience and track record.
Marketing also encompasses the search for student bookkeepers. Job listings will be posted at local universities and promote the learning involved in the position and the "leg up" it can give students for accounting positions upon graduation. We will recruit the best student bookkeepers possible. The costs associated with this hiring are only the time of Max Greenwood.
The sales strategy for The Sorcerer’s Accountant’s new bookkeeping services is to attempt to sell the service predominantly to existing clients, especially at first before marketing pays off with new inquiries. This will require Max Greenwood to inform all existing clients by phone about the idea, once he has determined that they are qualified to use the service. Whenever possible, clients will be approached during regularly scheduled calls and meetings so as to not require a great deal of additional prospecting time.
Greenwood will then ask clients directly for referrals to other businesses and business owners they know who may be right for the bookkeeping services. Greenwood will seek to contact two referrals per day. When and if existing clients and referrals are exhausted, Greenwood will engage in cold calling to likely prospects he has heard about from other businesses.
The result of this initiative of direct selling is expected to be at least five clients within the first couple of months, as many current Sorcerer’s Accountant clients appear extremely ready for this service and trusting of Max Greenwood.
Unit prices represent the average project cost for tax services ($750), cost accounting projects ($1,000), and QuickBooks services ($300). Bookkeeping services are set at $30 per hour. Direct unit costs are very low for all of these services as they are primarily labor services. Tax projects incur a 5% cost for printing and travel, cost accounting projects incur 3% cost, primarily for travel. QuickBooks services are generally given remotely and sales of QuickBooks are done directly to the vendor (Greenwood Accounting receives a commission on software sold). Bookkeeping services incur a 50% cost of sales as the bookkeepers are paid at $15 per hour.
Total sales are expected to rise significantly with the success of the bookkeeping services revenue stream. The existing revenue streams are projected to grow at slow rates, as Max Greenwood cannot take on much additional work. They are not projected to grow at all in 2010, as Greenwood will spend additional time on the establishment of the bookkeeping services. Furthermore, these revenues will drop by 20% in the first quarter as additional time is spent by Greenwood on hiring, training and launching this revenue stream.
The sales forecast assumes part-time bookkeepers working 20 hours per week. These will grow from 2 bookkeepers working below capacity at the start of 2010 to 3 by the end of 2010, to 4 in 2011 and 8 by the end of 2012. Revenues will begin in the second month after training in the first month of 2010. This growth rate is made possible by the intention to do everything possible to retain clients and grow with them, as well as to actively seek referrals to other businesses from each client. Two levels of oversight (Greenwood’s oversight over the Bookkeeping Manager, and the Bookkeeping Manager’s oversight over all bookkeepers) will improve quality assurance and the chances of a high level of client retention and satisfaction.
Direct cost of sales are very low for the business as most costs are fixed. Travel to client sites, printing and paper, and other direct supplies for clients are the only direct costs for services provided directly by Greenwood. The direct labor of student bookkeepers for the bookkeeping services is $15 per hour, or 50%. Wages for non-billable hours (training periods) for new bookkeepers are listed in the Personnel table.
Sales Forecast | |||
2010 | 2011 | 2012 | |
Unit Sales | |||
Tax Preparations | 125 | 130 | 135 |
Cost Accounting Analysis | 60 | 63 | 65 |
QuickBooks Services | 57 | 59 | 62 |
Bookkeeping Hours | 1,570 | 3925 | 7850 |
Total Unit Sales | 1,812 | 4,177 | 8,112 |
Unit Prices | 2010 | 2011 | 2012 |
Tax Preparations | $750.00 | $750.00 | $750.00 |
Cost Accounting Analysis | $1,000.00 | $1,000.00 | $1,000.00 |
QuickBooks Services | $300.00 | $300.00 | $300.00 |
Bookkeeping Hours | $30.00 | $30.00 | $30.00 |
Sales | |||
Tax Preparations | $93,600 | $97,500 | $101,250 |
Cost Accounting Analysis | $60,300 | $63,000 | $65,000 |
QuickBooks Services | $17,100 | $17,700 | $18,600 |
Bookkeeping Hours | $47,100 | $117,750 | $235,500 |
Total Sales | $218,100 | $295,950 | $420,350 |
Direct Unit Costs | 2010 | 2011 | 2012 |
Tax Preparations | $37.50 | $37.50 | $37.50 |
Cost Accounting Analysis | $30.00 | $30.00 | $30.00 |
QuickBooks Services | $0.00 | $0.00 | $0.00 |
Bookkeeping Hours | $15.00 | $15.00 | $15.00 |
Direct Cost of Sales | |||
Tax Preparations | $4,680 | $4,875 | $5,063 |
Cost Accounting Analysis | $1,809 | $1,890 | $1,950 |
QuickBooks Services | $0 | $0 | $0 |
Bookkeeping Hours | $23,550 | $58,875 | $117,750 |
Subtotal Direct Cost of Sales | $30,039 | $65,640 | $124,763 |
To execute the milestones listed, Max Greenwood will make liberal use of an outside marketing service firm (OF denotes outside firm on the table) which will manage the execution of the marketing activities listed. Greenwood will directly execute the sales activities listed through his work with clients.
$4,000 of these costs will be incurred at the end of 2009 and are included in operating costs on the past performance table.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Redevelop Website | 12/1/2009 | 1/1/2010 | $2,500 | MG (OF) | Marketing |
List Website on Databases | 1/1/2010 | 1/15/2010 | $500 | MG (OF) | Marketing |
Change Yellow Pages ads | 1/1/2010 | 1/15/2010 | $500 | MG (OF) | Marketing |
Search Engine Marketing | 1/1/2010 | 12/31/2010 | $12,000 | MG (OF) | Marketing |
Expand Website Best Practices Section | 12/1/2009 | 2/28/2010 | $0 | MG | Marketing |
Redevelop Brochure | 12/1/2009 | 1/1/2010 | $1,000 | MG (OF) | Marketing |
Print New Brochures | 1/1/2010 | 1/15/2010 | $3,000 | MG (OF) | Marketing |
Promotion to Clients | 1/1/2010 | 1/31/2010 | $0 | MG | Sales |
Promotion to Client Referrals | 2/1/2010 | 2/28/2010 | $0 | MG | Sales |
Develop Print Ad | 12/1/2009 | 12/15/2009 | $500 | MG (OF) | Marketing |
Run first print ads | 2/1/2010 | 2/15/2010 | $5,000 | MG (OF) | Marketing |
Totals | $25,000 |
Max Greenwood is CEO and sole manager of The Sorcerer’s Accountant. With the launch of bookkeeping services, Greenwood will oversee a part-time bookkeeping manager who will oversee the work of the bookkeepers. The manager will be in an MBA or MS accounting program with professional work experience and bookkeeping experience, preferably at the start of his or her graduate school program so that he or she can work through the program’s two years and then be considered for a move to a full-time position in year three. This manager will work from the Sorcerer’s Accountant office or remotely, checking in with the bookkeepers by email and phone to remain apprised of the situations and problems they are facing. The manager will be present for the bookkeepers’ training by Max Greenwood, so he or she will be aware of their responsibilities and requirements.
Periodically, the manager will visit the bookkeepers on-site and also request to audit their work directly to spot any problems before they become issues for the clients. Any issues with the bookkeepers will be reported by the clients to the bookkeeping manager directly. He will either handle them himself or report to Greenwood for help.
Greenwood will remain in close contact with the bookkeeping manager and review work samples from the bookkeepers at least once a month.
Direct cost wages for student bookkeepers’ billable hours are listed in the Sales Forecast. The wages shown for student bookkeepers in this table represent only training periods (non-billable hours) when new bookkeepers join the business. We will start with two part-time bookkeepers at the start of 2010, and increase to three midyear, adding a fourth in the second year and doubling the student bookkeeping staff to eight total in the third year.
Employee benefits are 10% of payroll and are provided only for the management.
Personnel Plan | |||
2010 | 2011 | 2012 | |
Bookkeeper training-period wages | $1,200 | $400 | $1,600 |
Max Greenwood | $60,000 | $65,000 | $70,000 |
Bookkeeper Manager | $24,000 | $28,800 | $48,000 |
Benefits | $8,400 | $9,380 | $11,800 |
Total People | 5 | 6 | 10 |
Total Payroll | $93,600 | $103,580 | $131,400 |
The financial plan of the business requires growth financed by positive cash flows from operations. Additional outside investment or owner investment is not necessary. The new business line is not capital-intensive, but will increase fixed costs of the business which must be covered almost immediately by additional revenues from bookkeeping sales. This is feasible because it is expected that at least five current clients will use the service without hesitation as they are ready to start using a bookkeeper or outsource their current bookkeeping.
The business will grow the number of part-time bookkeepers with the business over these next three years. In the first year, two bookkeepers will work at less than 20 hours per week each for several months before reaching capacity, and a third bookkeeper will join us mid-year. A fourth part-time bookkeeper will be added in year two, and four more will be added in year three.
Our monthly revenue break-even is based on the fixed costs of running the current business along with the old lines of business. This is a significant increase from the 2009 break-even point. The increased marketing activity, capacity, payroll, benefits, and computer expenses for the new bookkeeper, insurance for the new line of business, and cost of sales to hire bookkeepers drives this break-even point higher.
Break-even Analysis | |
Monthly Units Break-even | 141 |
Monthly Revenue Break-even | $16,926 |
Assumptions: | |
Average Per-Unit Revenue | $120.36 |
Average Per-Unit Variable Cost | $16.58 |
Estimated Monthly Fixed Cost | $14,595 |
The Sorcerer’s Accountant actually expects its gross margin to fall as it takes on bookkeepers to fulfill the new bookkeeping service. This will move from the firm’s gross margin from being in line with a non-employer firm to a contractor firm that provides labor to businesses. The growth in revenues will offset this drop in gross margin and produce steady growth in net profit. Marketing will include the activities listed for 2010 in the milestones table as well as additional runs of print ads in local publications beyond the first few months. This expense will drop somewhat in future years as marketing returns to the business’s focus on referrals and word-of-mouth from clients.
Rent and utilities will not grow significantly, as only Greenwood and the bookkeeping manager will work out of the office space. Insurance will grow to cover the added liability of additional employees working in client spaces. Payroll taxes are set at 15% of payroll and the bookkeeping labor items. Employee benefits are 10% of payroll and are provided only for the management. January will be a month of additional setup training to bring the new bookkeepers and manager online and install additional software and computers. Software and computer expenses to provide accounting software for the laptops of student bookkeepers and to continue to upgrade the systems of the business will grow. In the first year, this includes a computer and software set-up for the bookkeeping manager.
Pro Forma Profit and Loss | |||
2010 | 2011 | 2012 | |
Sales | $218,100 | $295,950 | $420,350 |
Direct Cost of Sales | $30,039 | $65,640 | $124,763 |
Other Cost of Sales | $0 | $0 | $0 |
Total Cost of Sales | $30,039 | $65,640 | $124,763 |
Gross Margin | $188,061 | $230,310 | $295,588 |
Gross Margin % | 86.23% | 77.82% | 70.32% |
Expenses | |||
Payroll | $93,600 | $103,580 | $131,400 |
Marketing/Promotion | $38,500 | $20,000 | $20,000 |
Depreciation | $0 | $0 | $0 |
Rent | $18,000 | $18,720 | $19,469 |
Utilities | $2,400 | $2,496 | $2,596 |
Insurance | $5,000 | $7,000 | $8,000 |
Payroll Taxes | $14,040 | $15,537 | $19,710 |
Software and Computer Expenses | $3,600 | $4,000 | $6,000 |
Total Operating Expenses | $175,140 | $171,333 | $207,175 |
Profit Before Interest and Taxes | $12,921 | $58,977 | $88,413 |
EBITDA | $12,921 | $58,977 | $88,413 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $3,876 | $17,693 | $26,524 |
Net Profit | $9,045 | $41,284 | $61,889 |
Net Profit/Sales | 4.15% | 13.95% | 14.72% |
The expansion of the business can be undertaken with the current cash reserves, even accounting for a cash loss over $10000 in February, 2010 as the marketing and set-up expenses for the new business line must be paid. The business will return to positive cash-flow in the second quarter. The fact that the part-time bookkeepers will only be deployed on paying jobs lowers the risk of this new business line to the cost of the bookkeeping manager and marketing. Significant cash reserves can be built up in future years for an acquisition or additional service expansion or the owner can take dividends as shown.
Pro Forma Cash Flow | |||
2010 | 2011 | 2012 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $109,050 | $147,975 | $210,175 |
Cash from Receivables | $105,612 | $144,145 | $204,055 |
Subtotal Cash from Operations | $214,662 | $292,120 | $414,230 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $214,662 | $292,120 | $414,230 |
Expenditures | 2010 | 2011 | 2012 |
Expenditures from Operations | |||
Cash Spending | $93,600 | $103,580 | $131,400 |
Bill Payments | $111,643 | $149,376 | $220,816 |
Subtotal Spent on Operations | $205,243 | $252,956 | $352,216 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $20,000 | $60,000 |
Subtotal Cash Spent | $205,243 | $272,956 | $412,216 |
Net Cash Flow | $9,418 | $19,164 | $2,013 |
Cash Balance | $29,418 | $48,582 | $50,596 |
The net worth of the business will improve if the new business line succeeds as expected. Additional external financing will not be needed and the debt of the business will remain low.
Pro Forma Balance Sheet | |||
2010 | 2011 | 2012 | |
Assets | |||
Current Assets | |||
Cash | $29,418 | $48,582 | $50,596 |
Accounts Receivable | $10,730 | $14,560 | $20,680 |
Other Current Assets | $5,000 | $5,000 | $5,000 |
Total Current Assets | $45,148 | $68,142 | $76,276 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $45,148 | $68,142 | $76,276 |
Liabilities and Capital | 2010 | 2011 | 2012 |
Current Liabilities | |||
Accounts Payable | $10,708 | $12,418 | $18,663 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $10,708 | $12,418 | $18,663 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $10,708 | $12,418 | $18,663 |
Paid-in Capital | $10,000 | $10,000 | $10,000 |
Retained Earnings | $15,396 | $4,441 | ($14,276) |
Earnings | $9,045 | $41,284 | $61,889 |
Total Capital | $34,441 | $55,724 | $57,613 |
Total Liabilities and Capital | $45,148 | $68,142 | $76,276 |
Net Worth | $34,441 | $55,724 | $57,613 |
The Sorcerer’s Accountant is compared here to the “Office Administrative Services” industry of under $500,000 in revenues. Comparison to the other closest industry, “Tax Preparation Services,” is less useful because of the differences created by the new revenue line.
Sorcerer’s Accountant does not hold substantial current or long-term assets, besides some office equipment and a rental security deposit. The assets of the business are primarily the human and knowledge assets of Max Greenwood, and the resources presented on the Sorcerer’s Accountant website which are not recognized here. This explains the differences in asset ratios.
Gross margins will be higher than industry averages, as employees will be contracted directly to clients only for the bookkeeping services and not for the accounting services of the business. However, S G & A will be higher than the industry averages because of the need for an extra level of management to oversee the employees.
Ratio Analysis | ||||
2010 | 2011 | 2012 | Industry Profile | |
Sales Growth | 24.63% | 35.69% | 42.03% | 3.34% |
Percent of Total Assets | ||||
Accounts Receivable | 23.77% | 21.37% | 27.11% | 14.34% |
Other Current Assets | 11.07% | 7.34% | 6.56% | 53.58% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 70.11% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 29.89% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 23.72% | 18.22% | 24.47% | 37.94% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 54.53% |
Total Liabilities | 23.72% | 18.22% | 24.47% | 92.47% |
Net Worth | 76.28% | 81.78% | 75.53% | 7.53% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 86.23% | 77.82% | 70.32% | 59.56% |
Selling, General & Administrative Expenses | 82.08% | 63.87% | 55.60% | 28.35% |
Advertising Expenses | 17.65% | 6.76% | 4.76% | 1.21% |
Profit Before Interest and Taxes | 5.92% | 19.93% | 21.03% | 8.19% |
Main Ratios | ||||
Current | 4.22 | 5.49 | 4.09 | 1.24 |
Quick | 4.22 | 5.49 | 4.09 | 1.18 |
Total Debt to Total Assets | 23.72% | 18.22% | 24.47% | 92.47% |
Pre-tax Return on Net Worth | 37.52% | 105.84% | 153.46% | 696.33% |
Pre-tax Return on Assets | 28.62% | 86.55% | 115.91% | 52.41% |
Additional Ratios | 2010 | 2011 | 2012 | |
Net Profit Margin | 4.15% | 13.95% | 14.72% | n.a |
Return on Equity | 26.26% | 74.09% | 107.42% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 10.16 | 10.16 | 10.16 | n.a |
Collection Days | 29 | 31 | 31 | n.a |
Accounts Payable Turnover | 10.78 | 12.17 | 12.17 | n.a |
Payment Days | 29 | 28 | 25 | n.a |
Total Asset Turnover | 4.83 | 4.34 | 5.51 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.31 | 0.22 | 0.32 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $34,441 | $55,724 | $57,613 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.21 | 0.23 | 0.18 | n.a |
Current Debt/Total Assets | 24% | 18% | 24% | n.a |
Acid Test | 3.21 | 4.31 | 2.98 | n.a |
Sales/Net Worth | 6.33 | 5.31 | 7.30 | n.a |
Dividend Payout | 0.00 | 0.48 | 0.97 | n.a |
Sales Forecast | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Unit Sales | |||||||||||||
Tax Preparations | 8 | 10 | 11 | 16 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | |
Cost Accounting Analysis | 5 | 4 | 2 | 2 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | |
QuickBooks Services | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Bookkeeping Hours | 0 | 50 | 70 | 90 | 100 | 120 | 140 | 160 | 180 | 200 | 220 | 240 | |
Total Unit Sales | 17 | 67 | 88 | 113 | 121 | 141 | 161 | 181 | 201 | 221 | 241 | 261 | |
Unit Prices | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Tax Preparations | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | $750.00 | |
Cost Accounting Analysis | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |
QuickBooks Services | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | |
Bookkeeping Hours | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | |
Sales | |||||||||||||
Tax Preparations | $6,000 | $7,200 | $8,400 | $12,000 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | |
Cost Accounting Analysis | $4,800 | $3,600 | $2,400 | $1,500 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | |
QuickBooks Services | $1,200 | $1,200 | $1,200 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Bookkeeping Hours | $0 | $1,500 | $2,100 | $2,700 | $3,000 | $3,600 | $4,200 | $4,800 | $5,400 | $6,000 | $6,600 | $7,200 | |
Total Sales | $12,000 | $13,500 | $14,100 | $17,700 | $18,000 | $18,600 | $19,200 | $19,800 | $20,400 | $21,000 | $21,600 | $22,200 | |
Direct Unit Costs | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Tax Preparations | 5.00% | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 | $37.50 |
Cost Accounting Analysis | 3.00% | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 |
QuickBooks Services | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Bookkeeping Hours | 50.00% | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 |
Direct Cost of Sales | |||||||||||||
Tax Preparations | $300 | $360 | $420 | $600 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | |
Cost Accounting Analysis | $144 | $108 | $72 | $45 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | |
QuickBooks Services | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Bookkeeping Hours | $0 | $750 | $1,050 | $1,350 | $1,500 | $1,800 | $2,100 | $2,400 | $2,700 | $3,000 | $3,300 | $3,600 | |
Subtotal Direct Cost of Sales | $444 | $1,218 | $1,542 | $1,995 | $2,055 | $2,355 | $2,655 | $2,955 | $3,255 | $3,555 | $3,855 | $4,155 |
Personnel Plan | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Bookkeeper training-period wages | $800 | $0 | $0 | $0 | $0 | $0 | $400 | $0 | $0 | $0 | $0 | $0 | |
Max Greenwood | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Bookkeeper Manager | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Benefits | 10% | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 |
Total People | 4 | 4 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $8,500 | $7,700 | $7,700 | $7,700 | $7,700 | $7,700 | $8,100 | $7,700 | $7,700 | $7,700 | $7,700 | $7,700 |
Pro Forma Profit and Loss | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | $12,000 | $13,500 | $14,100 | $17,700 | $18,000 | $18,600 | $19,200 | $19,800 | $20,400 | $21,000 | $21,600 | $22,200 | |
Direct Cost of Sales | $444 | $1,218 | $1,542 | $1,995 | $2,055 | $2,355 | $2,655 | $2,955 | $3,255 | $3,555 | $3,855 | $4,155 | |
Other Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $444 | $1,218 | $1,542 | $1,995 | $2,055 | $2,355 | $2,655 | $2,955 | $3,255 | $3,555 | $3,855 | $4,155 | |
Gross Margin | $11,556 | $12,282 | $12,558 | $15,705 | $15,945 | $16,245 | $16,545 | $16,845 | $17,145 | $17,445 | $17,745 | $18,045 | |
Gross Margin % | 96.30% | 90.98% | 89.06% | 88.73% | 88.58% | 87.34% | 86.17% | 85.08% | 84.04% | 83.07% | 82.15% | 81.28% | |
Expenses | |||||||||||||
Payroll | $8,500 | $7,700 | $7,700 | $7,700 | $7,700 | $7,700 | $8,100 | $7,700 | $7,700 | $7,700 | $7,700 | $7,700 | |
Marketing/Promotion | $10,000 | $3,000 | $3,000 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Insurance | $5,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Payroll Taxes | 15% | $1,275 | $1,155 | $1,155 | $1,155 | $1,155 | $1,155 | $1,215 | $1,155 | $1,155 | $1,155 | $1,155 | $1,155 |
Software and Computer Expenses | $2,500 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Total Operating Expenses | $28,975 | $13,655 | $13,655 | $13,155 | $13,155 | $13,155 | $13,615 | $13,155 | $13,155 | $13,155 | $13,155 | $13,155 | |
Profit Before Interest and Taxes | ($17,419) | ($1,373) | ($1,097) | $2,550 | $2,790 | $3,090 | $2,930 | $3,690 | $3,990 | $4,290 | $4,590 | $4,890 | |
EBITDA | ($17,419) | ($1,373) | ($1,097) | $2,550 | $2,790 | $3,090 | $2,930 | $3,690 | $3,990 | $4,290 | $4,590 | $4,890 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($5,226) | ($412) | ($329) | $765 | $837 | $927 | $879 | $1,107 | $1,197 | $1,287 | $1,377 | $1,467 | |
Net Profit | ($12,193) | ($961) | ($768) | $1,785 | $1,953 | $2,163 | $2,051 | $2,583 | $2,793 | $3,003 | $3,213 | $3,423 | |
Net Profit/Sales | -101.61% | -7.12% | -5.45% | 10.08% | 10.85% | 11.63% | 10.68% | 13.05% | 13.69% | 14.30% | 14.88% | 15.42% |
Pro Forma Cash Flow | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $6,000 | $6,750 | $7,050 | $8,850 | $9,000 | $9,300 | $9,600 | $9,900 | $10,200 | $10,500 | $10,800 | $11,100 | |
Cash from Receivables | $7,492 | $6,025 | $6,760 | $7,110 | $8,855 | $9,010 | $9,310 | $9,610 | $9,910 | $10,210 | $10,510 | $10,810 | |
Subtotal Cash from Operations | $13,492 | $12,775 | $13,810 | $15,960 | $17,855 | $18,310 | $18,910 | $19,510 | $20,110 | $20,710 | $21,310 | $21,910 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $13,492 | $12,775 | $13,810 | $15,960 | $17,855 | $18,310 | $18,910 | $19,510 | $20,110 | $20,710 | $21,310 | $21,910 | |
Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Expenditures from Operations | |||||||||||||
Cash Spending | $8,500 | $7,700 | $7,700 | $7,700 | $7,700 | $7,700 | $8,100 | $7,700 | $7,700 | $7,700 | $7,700 | $7,700 | |
Bill Payments | $7,419 | $15,396 | $6,775 | $7,203 | $8,219 | $8,360 | $8,747 | $9,065 | $9,530 | $9,920 | $10,310 | $10,700 | |
Subtotal Spent on Operations | $15,919 | $23,096 | $14,475 | $14,903 | $15,919 | $16,060 | $16,847 | $16,765 | $17,230 | $17,620 | $18,010 | $18,400 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $15,919 | $23,096 | $14,475 | $14,903 | $15,919 | $16,060 | $16,847 | $16,765 | $17,230 | $17,620 | $18,010 | $18,400 | |
Net Cash Flow | ($2,427) | ($10,321) | ($665) | $1,057 | $1,936 | $2,250 | $2,063 | $2,745 | $2,880 | $3,090 | $3,300 | $3,510 | |
Cash Balance | $17,573 | $7,252 | $6,588 | $7,645 | $9,580 | $11,830 | $13,893 | $16,638 | $19,518 | $22,608 | $25,908 | $29,418 |
Pro Forma Balance Sheet | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $20,000 | $17,573 | $7,252 | $6,588 | $7,645 | $9,580 | $11,830 | $13,893 | $16,638 | $19,518 | $22,608 | $25,908 | $29,418 |
Accounts Receivable | $7,292 | $5,800 | $6,525 | $6,815 | $8,555 | $8,700 | $8,990 | $9,280 | $9,570 | $9,860 | $10,150 | $10,440 | $10,730 |
Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Total Current Assets | $32,292 | $28,373 | $18,777 | $18,403 | $21,200 | $23,280 | $25,820 | $28,173 | $31,208 | $34,378 | $37,758 | $41,348 | $45,148 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $32,292 | $28,373 | $18,777 | $18,403 | $21,200 | $23,280 | $25,820 | $28,173 | $31,208 | $34,378 | $37,758 | $41,348 | $45,148 |
Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Current Liabilities | |||||||||||||
Accounts Payable | $6,896 | $15,170 | $6,536 | $6,929 | $7,941 | $8,069 | $8,446 | $8,747 | $9,200 | $9,577 | $9,954 | $10,331 | $10,708 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $6,896 | $15,170 | $6,536 | $6,929 | $7,941 | $8,069 | $8,446 | $8,747 | $9,200 | $9,577 | $9,954 | $10,331 | $10,708 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $6,896 | $15,170 | $6,536 | $6,929 | $7,941 | $8,069 | $8,446 | $8,747 | $9,200 | $9,577 | $9,954 | $10,331 | $10,708 |
Paid-in Capital | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Retained Earnings | ($83,554) | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 | $15,396 |
Earnings | $98,950 | ($12,193) | ($13,154) | ($13,922) | ($12,137) | ($10,184) | ($8,021) | ($5,970) | ($3,387) | ($594) | $2,409 | $5,622 | $9,045 |
Total Capital | $25,396 | $13,203 | $12,241 | $11,474 | $13,259 | $15,212 | $17,375 | $19,426 | $22,009 | $24,802 | $27,805 | $31,018 | $34,441 |
Total Liabilities and Capital | $32,292 | $28,373 | $18,777 | $18,403 | $21,200 | $23,280 | $25,820 | $28,173 | $31,208 | $34,378 | $37,758 | $41,348 | $45,148 |
Net Worth | $25,396 | $13,203 | $12,241 | $11,474 | $13,259 | $15,212 | $17,375 | $19,426 | $22,009 | $24,802 | $27,805 | $31,018 | $34,441 |
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
IMAGES
VIDEO
COMMENTS
1. Upwork. (Free) One of the leading platforms for connecting bookkeepers with companies in need is Upwork. Established more than a decade ago in the heart of Silicon Valley, Upwork purports to have made more than $1 billion in 2020 for their freelance workers. Upwork operates on a bidding system.
Your bookkeeping marketing and sales plan might include: Determining where clients will find out about you and finding ways to meet them there (e.g., Google My Business, Google Ads, etc ...
Through freelance bookkeeping, you can increase your income, work flexible hours, and gain control over your career. In the United States, a freelance bookkeeper earns around $48,691 a year, or approximately $23.41 per hour. This number has massive potential to increase the more you gain experience and expertise as a self-employed bookkeeper.
9 expert tips for starting and running your freelance accounting and bookkeeping business. ... Establish a sales and marketing plan. While it's good to have personal connections to start a business, you should have a sales and marketing plan for continued and sustainable growth, covering everything from business cards and advertising to even ...
Choosing a name for the business. Registering your business with the proper state agencies. Obtaining a federal Employer Identification Number (EIN) and state identification numbers, if necessary ...
5. Choose bookkeeping software. Choosing the right bookkeeping software is one of the most important steps in setting up a bookkeeping business. In addition to your accounting software, you might also consider other software to help you manage payables and receivables.
How to create a business plan for your bookkeeping business. You'll want to create a business plan to see if your idea is feasible, focus and create effectiv...
Don't forget to give yourself a safety net of extra cash during the beginning stretch. 2. Create a business plan. To figure out how you'll make money as a virtual bookkeeper, you'll need to write a business plan. Preparing a business plan is essential for everyone should do before they start a business.
Type of Bookkeeper. Average Hourly Rate. Bookkeeper (Data Entry, Excel) $10+. Senior bookkeeper (Some accounting skills) $25+. Bookkeeper and Accountant. $40+. *Reflect rates charged by freelancers on Upwork in North America with over 1,000 hours and 90% success rate.
The good news is that learning how to start a bookkeeping business isn't hard. Follow these steps to launch your bookkeeping business in no time. 1. Pick your market and niche. A bookkeeper's ...
Bookkeeping helps you stay on top of your freelance income and ensures you'll be ready in the event of an audit. This article will cover: 12 Tips For Bookkeeping For Your Freelance Business. Why Freelancers Should Care About Bookkeeping. Conclusion. Frequently Asked Questions. 12 Tips for Bookkeeping for Your Freelance Business
If that's the case, make sure you include ideas like up-selling small businesses from hourly consultation to quarter contracts. Download this accounting and bookkeeping sample business plan PDF for free right now, or visit Bplans' gallery of more than 550 sample business plans if you want more options. There are plenty of reasons accounting ...
Finance & Accounting Talent ». Bookkeepers. $30/hr. Arnold Legrand N. Bookkeeper. 4.9/5. (95 jobs) I am a Member of the Association of Chartered Certified Accountants (ACCA) UK, with over five years of experience providing Accounting Bookkeeping and VAT services.
3. Target market and competition: Profile the clients you want, and the bookkeeping solutions they use now. 4. Sales and marketing: Show how you'll reach your target market, and what you'll say to them. 5. Budget and sales: Work out your costs and predict how much you can earn over the first couple of years. 6.
This article discusses six steps to kickstart your freelance bookkeeping venture. It includes: Investigating the need for a bookkeeping certification; Creating a business plan; Choosing a business name and structure; Setting up your operations; Managing your tech stack; and, Marketing your business ideas. 1.
Step 1: Create a Business Plan. Writing a business plan is something that everyone should do before starting a business. While a business plan can be used to obtain funding for your business, the real value is the thought that goes into the process of writing a plan. During the business plan writing process, you should think about every aspect ...
Bookkeeping Business Plan Summary. Putting together a business plan for your bookkeeping business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert bookkeeping business plan; download it to PDF to show banks and investors. You will really understand the bookkeeping business, your ...
Affordability is at an all-time high. Technology can smooth away a lot of the data double-handling that traditionally made bookkeeping labor-intensive and expensive. You can now deliver a top-class service for a fraction of what it used to cost. That allows you to pitch a more affordable price while still generating a good margin.
In your freelance business plan, develop a brief description of each service you plan to offer clients. Try to concisely explain what you'll do and outline the process you'll use to execute that service. It would be beneficial to your plan if you also talked about how you'll offer your services to clients.
A Sample Bookkeeping Service Business Plan Template. 1. Industry Overview. The financial services industry is indeed a broad industry and one of the active lines of businesses in the industry is bookkeeping and payroll services business. Bookkeeping is all about recording of financial transactions especially in businesses.
5. What do you need to get started as a freelance bookkeeper? To get started as a freelance bookkeeper, you should first become familiar with the software used by bookkeepers and attain any needed certification and/or license. Additionally, having a business plan in place and the appropriate business insurance is important.
Step One: Draft a Business Plan. Take time to sit down and write out a business plan- a roadmap of what you'd like your business to look like. This can be as creative as you'd like, and include short-term and long-term goals that you have for your bookkeeping business. Your business plan should define your purpose in wanting to start this ...
Sales Forecast. Unit prices represent the average project cost for tax services ($750), cost accounting projects ($1,000), and QuickBooks services ($300). Bookkeeping services are set at $30 per hour. Direct unit costs are very low for all of these services as they are primarily labor services.