An ideal fee base for a new practitioner or as a bolt on to an existing firm.
This 30 year sole practitioner firm has expected fees between $330K and $350K for FY 2022 with additional scope for growth through increased resourcing as well as the introduction of financial planning or mortgage broking. The firm has a cross section of older well established family groups / clients with long tenure now in retirement phase as well as younger clients that are operating businesses and have a reliance on the practice to keep their tax obligation up to date. New clients currently originate from referrals as well as the firm’s website.
The firm offers tax compliance and SMSF services through the utilisation of Xero, XPM, BGL 360, CAS 360 and Suitefiles. SOAs are prepared externally for more complex transactions. Scheduled working papers are utilised for all clients.
Billings consist of 116 or 23% of revenue associated with individual returns, 11 partnerships contributing 4% of fees, 14 trust returns at 11% of revenue, 20 companies at 16% of fees, 19 super funds adding 19% of fees, and 35 quarterly BAS contributing 19% of revenue.
The bulk of the firm’s revenue is contributed by clients with annual fees ranging between $3K and $30K, with over 50% of turnover representative of fees $5K – $20K. Client groups are limited to 89 with an average client size of $3.7K.
The top 20 client groups equate to around 57% of continuing fees where the key contact ranges in age between their late thirties and their mid-eighties. Some 45% of these contacts are in their forties and fifties. Most have been serviced by the firm for five, ten or fifteen plus years, with all but one located on the Northern Beaches / North Shore.
Personnel, in addition to the principal, consist of a part time contractor, a part time bookkeeper and a part time administrative person.
The firm’s premises consist of a main office with 53 m2 and an adjoining office of 40 m2 utilised as storage. The lease is currently month to month.
The vendor, who is both a tax agent and authorised representative, wishes to retire but is available on a part-time basis for up to six months where required.
E-mail broking@robknightsbroking.com.au to request a confidentiality agreement or phone (02) 9233 4333.
The completion of a confidentiality agreement is essential prior to the supply of any information.
