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Below is a template to help you create each section of your Accounting business plan.
DeSanta & Co is a new accounting firm located in Indianapolis, Indiana. We provide a full suite of accounting services to local businesses, including bookkeeping, accounting, and tax services. Our combined decades of expertise and client-focused service ensures that we will become the #1 accounting firm in the next five years.
DeSanta & Co is run by Michael DeSanta. Michael has decades of accounting experience and has gained a loyal clientbase from providing his services through competing firms. His expertise, reputation, and loyal clientbase will ensure that our firm is successful.
DeSanta & Co will offer its clients a full suite of accounting services. These services include bookkeeping, accounting, tax services, and auditing. The company will employ a large and diverse staff of professional accountants to ensure we can offer as many services as possible.
DeSanta & Co will serve small and medium-sized businesses located in the Indianapolis, Indiana area. Most of these businesses will have less than 1000 employees and earn a revenue less than $10 million per year. We will also offer limited services to individuals, such as tax prep and help.
DeSanta & Co’s most valuable asset is the expertise and experience of its founder, Michael DeSanta. Michael has been a certified public accountant (CPA) for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to DeSanta & Co once the company is established and running. Michael’s combination of skills, accounting knowledge, and loyal following will ensure that DeSanta & Co is a successful firm.
DeSanta & Co will be able to achieve success by offering the following competitive advantages:
DeSanta & Co is currently seeking $400,000 to launch. The funding will be dedicated to the office build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:
The following graph below outlines the pro forma financial projections for DeSanta & Co.
DeSanta & Co is a new accounting firm located in Indianapolis, Indiana that provides local businesses with a full suite of accounting services. We are a small firm but have considerable experience, so we can offer better quality of services than our competition. We expect that our most popular services will include bookkeeping, accounting, and tax services. Our combined decades of expertise and client-focused service ensures that we will become the #1 accounting firm in the next five years.
DeSanta & Co is run by Michael DeSanta. Michael has decades of accounting experience and has gained a loyal clientbase from providing his services through competing firms. After working for several accounting firms around town, he surveyed his clientbase to see if they would be willing to switch to his new company once launched. Most of his clients responded positively, which motivated Michael to finally launch his business.
Upon surveying his clientbase and finding a potential office, Michael DeSanta incorporated DeSanta & Co as an S-Corporation in April 2023.
The business is currently being run out of Michael’s home office, but once the lease on DeSanta & Co’s office location is finalized, all operations will be run from there.
Since incorporation, DeSanta & Co has achieved the following milestones:
DeSanta & Co will provide the following services to its clients:
The accounting industry is essential to the success of other businesses and industries. Accountants record and track financial transactions, which helps businesses ensure they are making a profit. As such, accounting services are always in demand and the industry often sees great growth.
There are several essential services that accounting firms can provide to businesses and individuals. The most popular services include bookkeeping, tax services, advisory services, and valuation and planning. Though most businesses employ their own accountants, many businesses are switching to hiring accounting firms to save on costs.
The accounting industry is expected to grow over the next several years. According to The Business Research Company, the accounting industry is expected to grow at a CAGR of 4.2% from now until 2027. This growth is due to the increasing demand for accountants worldwide. This increase in demand and industry growth ensures that DeSanta & Co will achieve success.
DeSanta & Co will serve small and medium-sized businesses located in the Indianapolis, Indiana area. Most of these businesses will have less than 1000 employees and earn a revenue less than $10 million per year. We will also offer limited services to individuals, such as tax prep and help.
DeSanta & Co will primarily target the following customer profiles:
DeSanta & Co will face competition from other companies with similar business profiles. A description of each competitor company is below.
Perkins & Smith is a small accounting firm that has intentionally remained small so that they can have stronger relationships with their clients. Since they opened in 1960, Perkins & Smith has been one of the leading accounting firms in the Four State Region. They offer a wide range of services including accounting, bookkeeping, payroll services, tax prep and planning, and advisory services. They have built up a loyal clientele and maintained a strong, positive reputation since their opening decades ago.
Premiere Accounting is a large accounting firm that specializes in helping large businesses with accounting, taxes, and similar services. Since opening in 1995, they have acquired a loyal client base, including several multi-billion dollar companies. They employ over a hundred professionals who all have diverse backgrounds. This helps serve their diverse clientele and ensures they are meeting the specific needs of every business that works with them.
Jackson Brothers Accounting is a privately held accountant practice that has been popular in the area since 1985. They offer a wide variety of services including, tax planning and preparation, payroll processing, financial planning, and small business accounting. Though they are open to helping nearly all businesses and sectors, they primarily focus on local small businesses and startups.
DeSanta & Co will be able to offer the following advantages over the competition:
DeSanta & Co will offer a unique value proposition to its clientele:
The promotions strategy for DeSanta & Co is as follows:
Targeted Cold Calls
DeSanta & Co 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 need accounting services. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.
Referrals
DeSanta & Co understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Social Media
DeSanta & Co will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Website/SEO
DeSanta & Co will invest heavily in developing a professional website that displays all of the company’s services. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.
The fees and hourly pricing of DeSanta & Co will be moderate and competitive so clients feel they are receiving great value when utilizing our accounting services.
The following will be the operations plan for DeSanta & Co.
Operation Functions:
DeSanta & Co will have the following milestones completed in the next six months.
DeSanta & Co’s most valuable asset is the expertise and experience of its founder, Michael DeSanta. Michael has been a certified public accountant (CPA) for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to DeSanta & Co once the company is established and running. Michael’s combination of skills, accounting knowledge, and loyal following will ensure that DeSanta & Co is a successful firm.
Though he has never run his own business, Michael DeSanta has worked as an accountant long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting client base that he served while working for other accounting firms. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.
DeSanta & Co’s revenues will primarily come from charging clients for the accounting services we provide. We will charge our clients an hourly rate that will vary depending on the services they need.
The notable cost drivers for the company will include labor expenses, overhead, and marketing expenses.
DeSanta & Co is currently seeking $400,000 to launch. The funding will be dedicated to the office build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenues | |||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 |
| Expenses & Costs | |||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
| LIABILITIES & EQUITY | |||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 |
| Share Capital | $0 | $0 | $0 | $0 | $0 |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
An accounting business plan is a plan to start and/or grow your accounting business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
There are a number of different kinds of accounting businesses , some examples include: Full Service Accounting Firm, Bookkeeping Firm, Tax Firm, and Audit Firm.
Accounting businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting an accounting business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop An Accounting Business Plan - The first step in starting a business is to create a detailed accounting business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your accounting business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your accounting business is in compliance with local laws.
3. Register Your Accounting Business - Once you have chosen a legal structure, the next step is to register your accounting business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your accounting business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Accounting Equipment & Supplies - In order to start your accounting business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your accounting business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful accounting business:
