This fee base is currently located some 35kms or 45 mins south of the Adelaide CBD with anticipated fees of $250K for FY 2023. This home based practice is completely cloud based and provides accounting and tax agent services to predominately ‘I’ return clients, although there are also some good sized businesses associated with the firm.
Xero XPM and tax are utilised with around 80% of the clients having no contact with the firm, whilst the balance are serviced via in-person appointments. Client retention is very high, although new clients are not currently being accepted. The website and referrals are seen as key sources for new clients.
Just under a third of the firm’s fees are associated with its 551 individual returns, whilst 17 partnership returns contribute just less than 6% of fees, 20 trust returns contribute 14% of revenue, the 10 company returns equate to 13% of income, with BAS also adding slightly less than 15% of annual income.
The 2022 FY incorporated 414 client groups at an average size of $635, 26% of whom have average annual fees < $500, whilst a good proportion of the remainder are between $2K and $20K per annum.
The top 20 client groups for the 2022 financial year contributed approximately 47% of annual fees, the largest of which equated to around 5.2% of revenue. Many of these are located in the southern suburbs, between the firm and the CBD. Virtually all have been with the practitioner for an extended period of time with over half the key contacts aged in their fifties, whilst 7 of the top 20 clients are below 50 years of age.
One part time accountant and one part time administrative staff member currently assist the practitioner who works 4 to 5 days during July to September and then 3 days per week for a remaining six months of the year.
As this is a home based practice, it would be envisaged that the purchaser would also continue to work from home or service the clients from new or current premises.
The vendor, having been in public practice for over two decades, now wishes to retire to spend time with their family. Given the size of the fee base, an extensive transition is not considered necessary, with the practitioner initially available a couple of days per week and then scaling back to one day per week as required.
E-mail broking@robknightsbroking.com.au to request a confidentiality agreement or phone (02) 9233 4333.
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