Buy Bookkeeping Business
If you are an aspiring entrepreneur and are conscious of starting your own business from scratch, buying an existing business may be a great venue to begin from. Although starting your own business from scratch can be exciting, it could also be just as risky.
buy bookkeeping business
When you operate an existing business, everything is already set up. An existing blueprint is available, there is an established customer base, fully trained employees, and defined operating expenses. Having an established customer base translates to sales from customer commitment to brands and referrals through word of mouth. According to a Nielsen survey, 60% of consumers with internet access are most likely to purchase new products from a familiar brand rather than change to a new brand. In this scenario, you can focus more on understanding customer needs and improving the customer service experience.It is given that any existing business has its set of experienced workers who can assist with the transition. This will save you a valuable amount of resources as there is less need for on-the-job training.Similarly, a fully-operating business already has established contracts with vendors making it easier to get products from manufacturers.
On the other hand, buying an existing business may have some disadvantages, most that you can avoid with a thorough evaluation. It goes without saying that most existing businesses with already working blueprints, operations, and experienced employees have relatively higher costs than starting your business from scratch. When you buy an existing business, you are also purchasing the projected earnings and products, but with that, you also get customers. The essential things to look out for during your due diligence are the hidden liabilities and undisclosed issues.
One of the critical questions to ask the seller is how the price of the business was derived. Is the price based on the industry standard and backed by the financials of the company? Define the number of staff, the equipment, and marketing collateral inclusive in the purchase. You may also want to consider the unquantifiable factors such as the market and projected profits. Factors in valuing a business include competition, demand, future community development, legal commitments, union contracts, buildings, and product prices.
When you buy an existing business, you also inherit both short term and long term existing obligations that come with it. This includes a lease agreement, collateral, outstanding loans, and significant account receivables to be inherited.
Intensively go through the paperwork information- tax returns, bounce sheets, profit and loss statements, financial documents, and business loans. Review financial statements and tax returns for the last three to five years (what it used to be).Recognize that the data can be misleading, so look out for details in overvalued assets, overstated or understated expenses, underreported income, and unrecorded debts. This can help you adjust the valuations and review the actual status of the business.
Once you have decided to purchase the business, do your due diligence, and negotiate the terms, it is time for the final stage to close the deal. In this last stage, it is best to rely on a third party to do the legal work for you. You can hire an accountant or attorney and ask for the advice of an experienced business owner.
Established Accounting Firm with tax preparation and CFO/Bookkeeping services in business since 2008. CFO/Bookkeeping services include weekly, bi-weekly, monthly, and quarterly engagement options with... More details
Customers have come to rely upon the efficient, reliable, and convenient suite of services provided by this bookkeeping business. Monthly subscriptions make for strong customer retention. Almost no... More details
This is a trusted CPA Accounting firm established in 1999 in a growing community in Southern Iowa. The property is not included in the sale of the business; however, the lease is transferable to the... More details
Available for acquisition is the Tax Preparation and Bookkeeping services portion of a well-established CPA firm. After many years in the business, the owner desires to go in a different direction and... More details
The Accounting Practice Exchange provides a platform for professional accountants interested in acquiring or buying into an existing, successful business, rather than going the long and often hazardous route of starting their own.
Once these common risks associated with buying any accountancy-relating business have been mitigated, smart entrepreneurs are then able to use these risks to their advantage, giving them the upper hand over other businesses starting from scratch.
One final advantage worth quickly pointing out is the great value for money purchasing an accounting or bookkeeping business can often present. Providing an initial upfront investment, either through a lump sum or financing the deal through banks, can seem a little daunting for prospective buyers at first. But in reality, many accounting or bookkeeping owners do look for quick sales of their business for relatively low prices, and this is not necessarily a red flag that indicates the poor performance of such business. There are a variety of reasons as to why owners contact us and other online directories who want to quickly sell their business. For example, they might be reaching retirement age and looking to get their hands that cash quickly, while other owners may be switching firms to join partnerships in well-paid positions.
As mentioned before, the most important thing to consider when looking at bookkeeping firms for sale and deciding whether a full business acquisition is right for you is to identify the major risks, and formulate a concrete strategy as to how you are going to not only mitigate them, but also use them to your advantage.
Few businesses allow you to work from home with flexible working hours. And even fewer come as part of a franchise giving you a proven business model and reliable support network.Rosemary... More details
BASED IN HAMPSHIRE.Turnover in excess of 278,000 with an adjusted EBITDA of 63,000.Services include payroll, bookkeeping, admin support, credit control, IT training and executive support... More details
Based in south east england.Turnover of 245,000 with an EBIT in excess of 75,000.Provides a comprehensive range of bookkeeping and payroll services, including management accounts and self... More details
Based in south east england.Generated an outturn of 203,000 in YE22.Provides comprehensive bookkeeping and payroll services for sole traders, partnerships and limited companies.Benefits from an... More details
Some bookkeepers choose to obtain certifications for their business. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs. You can also choose to become a certified public bookkeeper to market yourself better as a bookkeeping professional.
New businesses, including bookkeeping businesses, depend on a solid business plan to get off on the right foot. Not only will a business plan help you clarify your business goals and objectives, but it can also be used if you seek funding from lenders or investors. In general, a business plan will include the following:
You want your business name to reflect you as a person and the type of services you provide. Your business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do.
You can look at freelance sites, such as Upwork, to see what others are charging for bookkeeping services, but you can also learn a lot by asking around. Talk to businesses in your area to see what they are currently paying for bookkeeping services. Talk to people in your network who are also bookkeepers and ask what they are charging. In doing so, you can get a good idea as to the range bookkeepers charge for services.
You will likely want to establish a business banking account and credit card. This can help you keep your own business expenses organized and separate. If you plan to hire employees, such as an administrative assistant, you may also want to seek a small business loan. If you seek funding from a bank or investor, your business plan will be especially important because it is how potential lenders and investors will understand your business.
In addition to being good with finances and accounting software, operating a successful bookkeeping business requires staying up-to-date on accounting software technology trends, marketing your business, managing your own business and maintaining positive relationships with your clients.
Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she manages a column at Inc. Magazine.
A bookkeeper keeps track of monies coming into and out of a business by maintaining accurate financial records, according to the International Association of Bookkeepers (IAB), the largest bookkeeping institution in the world.
Digital software can help you monitor the workings of a business in real time. You can then report analysis from those numbers and enable your clients to make better informed decisions based on their finances.
These qualifications are recognised industry-wide and cover everything from understanding business documents, managing books and being able to post and make entries, to managing credit control, recording ledger accounts and preparing trial balances and other statements.
From check writing, payroll and credit card processing, to billing, invoicing, tax preparation, reporting and more, this bookkeeping software eliminates day to day accounting/bookkeeping hassles and frees up valuable time so that you can focus on growing your business. 041b061a72