Bookkeeping Business Plan Template
If you want to start a successful bookkeeping business or expand your current bookkeeping company, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of bookkeeping business plans.
The following bookkeeping business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Example Business Plan For Bookkeeping Businesses
I. Executive Summary
Business Overview
[Company Name], located in [insert location here] is a new bookkeeping firm that focuses on providing reliable expertise and exceptional customer service. The company is owned and operated by an experienced accountant who has been working in the industry for over fifteen years.
Products Served
[Company Name] will provide a full range of bookkeeping services for individuals and small businesses.
- Billing services for small business
- Bookkeeping and compilation services for small business
- Tax filing and preparation services for small business and individuals
- General accounting services for small business and individuals
Customer Focus
[Company Name] will primarily serve individuals and small businesses within a 30-mile radius of the firm’s office. The demographics of these customers are as follows:
- 120,000 individuals
- Average income of $74,700
- 58.9% married
- 49.6% in management/professional occupations
- Median age: 38 years
- 1,500 businesses
- Under 100 employees (average is 42)
Management Team
[Company Name] is led by [Founder’s Name], an experienced accountant who has been managing a large bookkeeping firm in [location] for the past eight years. She graduated from [University] with an accounting degree and has been working at a large payroll firm since then, starting at an entry level position and working her way up to a management level role.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is a need for affordable bookkeeping services within the community. Currently, the area is served exclusively by two large firms that serve corporate clients and one small startup bookkeeping firm that operates 100% online and has no brick-and-mortar presence.
- The firm’s office will be centrally located in a high-traffic commercial area, with easy access from multiple thoroughfares.
- The management team has a track record of success in the bookkeeping business.
- Market trends such as changes to regulations and filing processes have spurred demand for bookkeeping services.
Financial Highlights
[Company Name] is seeking a total funding of $150,000 of debt capital to open its bookkeeping firm.
- Office design/build: $40,000
- Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [insert location here] is a newly established bookkeeping company that will provide a variety of bookkeeping services for individuals and small businesses. The firm aims to be the community’s go-to source for reliable bookkeeping expertise and exceptional customer service. The company is owned and operated by an experienced accountant who has been working in the industry for over fifteen years.
[Company Name] was founded by [Founder’s Name], a local accountant who has been in a management role for a large bookkeeping firm in [location] for the past eight years. She graduated from [University] with an accounting degree in [Year] and has been working at a large payroll firm since then. [Founder] started out in an entry level position with the firm and has been working in progressively responsible roles where she learned how to manage and run a bookkeeping business before starting [Company name].
[Founder] began researching what it would take to start her own bookkeeping company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop her business plan in order to approach investors.
[Company Name]’s History
Once her market analysis was complete, [Founder] began surveying the local office space for lease and identified an ideal location for the bookkeeping firm. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].
Once the lease is finalized on the office space, interior design work can begin to make the office an appealing place to meet with clients.
Since incorporation, the Company has achieved the following milestones:
- Located available office space for rent that is ideal for the bookkeeping firm
- Developed the Company’s name, logo, and website located at [website]
- Hired an interior decorating company to design and furnish the office
- Determined equipment and necessary supplies
- Began recruiting key employees with bookkeeping experience
[Company Name]’s Products/Services
Below are [Company Name]’s product and service offerings:
A team of bookkeeping professionals will provide the following services:
- Billing services for small business
- Bookkeeping and compilation services for small business
- Tax filing and preparation services for small business and individuals
- General accounting services for small business and individuals
III. Industry Analysis
The United States Bookkeeping Industry is forecast to generate more than $60B this year. According to research reports, the largest bookkeeping firm in America generates approximately $9.5B annually. There are currently over 1.5M bookkeepers employed throughout the United States.
The top bookkeeping firms industry-wide are Automatic Data Processing (ADP) ($9.5B in annual revenue), Intuit ($7.8B in annual revenue), and Paychex ($4.0 in annual revenue). All other bookkeeping firms in the United States combined generate approximately $43.5B in annual revenue. An estimated 42% of industry revenue is generated through payroll services. Additional services such as billing, general accounting, tax preparation, and bookkeeping make up the remainder.
One of the biggest challenges for bookkeeping firms is the ability to keep up with changes in regulations. Additional hurdles include recruiting and retaining high quality employees, keeping up with evolving technology, and acquiring new clients.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve individuals and small businesses in the community of [company location] and its surrounding areas.
The community of [company location] has thousands of individuals and small businesses who would benefit from affordable bookkeeping services.
Customer Segmentation
The Company will primarily target the following three customer segments:
- Private businesses: Private businesses require payroll and bookkeeping services to track employee activity and ensure that payments meet stringent regulation and tax requirements. Businesses also use bookkeeping services to track the volume and detail of financial transactions.
- Individuals: Individuals primarily use bookkeeping services; however, they also request assistance for things such as specialized reports and tax assistance.
- Government and nonprofit organizations: Government entities and nonprofit organizations use some payroll and bookkeeping services; however, they generally hire internal staff.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 30-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Young & Mitchell
Founded in the 1930’s, Young & Mitchell has intentionally remained a small business so that the core group of professionals within the company could get to intimately know each one of their clients. The company is one of the leading tax firms in the Four State Region and offers financial guides and tax tools for individuals for free. Listed below is an outline of the services that the company offers according to their website:
- Tax Preparation and Planning Services
- Assurance and Advisory Services
- Estate and Trust Planning and Tax Preparation
- Bookkeeping/Write-up
- IRS Representation
- Accounting Services
- Audits, Reviews, and Compilation
- QuickBooks Accounting Help and Assistance
- Entity Selection and Restructuring
- Payroll Services
A Plus General Bookkeeping Services
A Plus General Bookkeeping Services is a bookkeeping firm that specializes in financial strategy and consulting for businesses of all sizes. The firm has been in business for over a decade and has acquired a loyal client base.
Clients may work with accountants in person, over the phone, through email, on video conferencing software, or completely through a new digital application. Although this firm has an excellent track record for service, it is also the most expensive bookkeeping company on the market.
Smith Brothers Accounting
Established in 1974, Smith Brothers Accounting is a privately held Accountant practice that offers a wide variety of financial services including tax planning and preparation, payroll processing, financial planning and small business accounting. Smith Brothers Accounting serves individuals and businesses.
Smith Brothers Accounting Services:
- Business Services
- Tax Services
- Individual Services
- Notary Services
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Location: [Company Name] is centrally-located in the community, which provides ease of access for clients. The firm’s office will be located between the retail and business districts, making it accessible to a larger customer base.
- Competitive pricing: [Company Name]’s pricing is more affordable than its closest competitors.
- Management: The management team has years of accounting experience that allows the Company to market to and serve clients in a much more sophisticated manner than competitors.
- Relationships: Having lived in the community for over 25 years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
VI. Marketing Plan
[Company Name] seeks to position itself as a reliable source for bookkeeping services at an affordable price with a guarantee of accuracy. Clients can expect to receive the best bookkeeping services on the market from skilled accountants and bookkeepers in [location].
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Client-focused bookkeeping services
- Service built on long-term relationships
- Thorough knowledge of the latest regulations
- Big-firm expertise in a small-firm environment
Promotions Strategy
[Company Name] expects its target market to be individuals and small businesses within a 30-mile radius of its location. The Company’s promotion strategy to reach these customers includes:
Targeted Cold Calls
[Company name] will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting individuals in areas and occupations that are most likely to demand the services of a bookkeeper. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.
Referrals
[Company name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer others by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Direct Mail
The Company will use a direct mail campaign to promote its brand and draw clients, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of [Company Name] as a bookkeeping firm.
Billboards and Commercials
Advertisements such as billboards placed in high trafficked areas will be used as well as commercials that will be shown on tv, streaming platforms, and radio stations.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all of the features and benefits of the bookkeeping company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Pre-Opening Events
Before opening the bookkeeping firm, [Company Name] will organize pre-opening events designed for prospective customers, local community, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Print Advertising
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in local magazines and newspapers.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content and post customer reviews that will increase audience awareness and loyalty.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new clients and encourage repeat business.
Pricing Strategy
[Company Name]’s pricing will be moderate so consumers feel they receive great value when purchasing the bookkeeping services. The client can expect to receive quality bookkeeping services at a more affordable price than what they pay at other accounting firms.
VII. Operations Plan
Functional Roles
[Company Name] will carry out its operations at its headquarters in [Location]. To execute on [Company Name]’s business model, the Company needs to perform several functions, including the following:
Service Functions
- Bookkeeping and Auditing Services
- Tax Preparation Services
- Financial Consulting and Advisory Services
- Customer Service
Administrative Functions
- General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
- Hiring and training staff
- Brand management/social media
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is headed by its founder, [Founder’s Name] who is an experienced accountant that has been managing a large bookkeeping firm in [location] for the past eight years. She graduated from [University] with an accounting degree and has been working at the large bookkeeping firm since then, starting at an entry level position and working her way up to a management position.
Hiring Plan
[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, she needs to hire the following personnel:
- Assistant Manager: 1 full-time employee to manage the day-to-day office operations and assist [Founder] with managerial duties.
- Tax preparation specialists: 2-3 who will work in the office full time.
- Financial consultants: 2-3 who will work on an appointment basis.
- Office staff: 2 employees who will manage the phone calls, scheduling, bookkeeping, marketing, clerical, billing, and any administrative task required.
- Brand manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
- Sales and marketing staff: 2 employees to manage outbound sales activities.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from its bookkeeping services. The major costs for the company will be salaries of the staff, which are paid through a combination of salaries and commission. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $150,000 of debt capital to open its bookkeeping firm. The capital will be used for funding capital expenditures and office build-out, hiring initial employees, marketing and branding expenses, and working capital.
Specifically, these funds will be used as follows:
- Office design/build: $40,000
- Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of clients | |
|---|---|
| Year 1 | 42 |
| Year 2 | 63 |
| Year 3 | 96 |
| Year 4 | 162 |
| Year 5 | 243 |
| Annual rent | $36,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
