An excellent entry point for a sole practitioner or as a bolt on to an existing firm.
This is a small business services practice with SMSF administration and audit services generating expected fees of $400K for the 2022 financial year. It commenced some 16+ years ago and has operated from the area throughout this time. Most clients are long term, with few individuals, unless they are part of a business group or have an SMSF. Where individuals are taken on, they will have rentals or are more complex in nature. Clients are predominately on Xero, with the balance on MYOB. The practice also performs SMSF audits for a couple of accountants.
The firm is based in what is now considered the fastest growing region of SE QLD, thus there is potential to grow through refreshed enthusiasm and an increased service offering to new businesses and residents in the area. To date, marketing has been non-existent, with the practitioner restricting growth due to their reluctance to take on more work or staff. The practice currently operates four days per week.
Billings consist of 135 or 19% of revenue associated with individual returns, 3 partnerships contributing 1% of fees, 21 trust returns at 11% of revenue, 24 companies at 18% of fees, 36 super funds adding 28% of fees, 29 or 7% of income from SMSF audits, 15 quarterly BAS contributing 8% of revenue, some management advice, as well as corporate secretarial services.
The bulk of the firm’s revenue is contributed by clients with annual fees ranging between $3K and $30K, with almost 50% of turnover representative of fees $5K – $20K. Client groups are limited to 78 with an average client size of $4.8K.
The top 20 client groups equate to around 60% of annual fees, the largest of which contributes 7.4% of revenue. The key contacts for these groups range in age from their early forties to eighty. Three quarters have been with the firm for over ten years. Around half are based locally to the firm with the balance throughout QLD.
Personnel, in addition to the principal, consist of two accountants and two administrative staff, all of whom work part time.
The firm’s premises, which are owned by a related party, consists of approximately 62 m2 with flexible rent / reviews available.
The vendor is retiring, however is available on a consultancy basis for up to twelve months.
E-mail broking@robknightsbroking.com.au to request a confidentiality agreement or phone (02) 9233 4333.
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