Bookkeeping & Accounting Firm

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Executive Summary

Plain Numbers Bookkeeping is a bookkeeping and tax preparation firm serving small businesses and individuals in our city and the nearby suburbs. We keep books, run payroll reports, prepare tax returns and give owners clear numbers so they can run their businesses with confidence. Small business owners are good at what they do, but many dread bookkeeping and taxes, and messy books lead to missed deductions, late filings and surprises. Many owners cannot afford a full-time accountant. We will win clients by being organized, explaining numbers in plain words, meeting deadlines and keeping information secure. Here is what our numbers show. We expect sales of about $83,700 in Year 1, growing to about $333,800 by Year 5 as we add bookkeepers and more monthly clients. We expect losses of about $22,600 in Year 1 and $30,000 in Year 2 while we build our customer base, then a profit from Year 3 (about $11,100), growing to about $29,800 by Year 5. We need $73,500 in total. That covers $8,300 in startup costs (computers and a scanner, tax preparer registration, errors and omissions and cyber insurance, software, engagement letters and a website) and a cash cushion of about three months of bills. I am putting in $10,000 of my own money, and I am asking for $63,500. I will work from home and at client sites, so no office lease is needed on day one. I am Jessica Singh, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Plain Numbers Bookkeeping will be a limited liability company (LLC) in Mississippi, owned by Jessica Singh. We will work from my home office, with meetings at client sites and cafes. What we believe. Keep accurate records, explain numbers in plain words, meet every deadline and protect client information. What we offer:
- Monthly bookkeeping for small businesses. - Payroll reports and sales tax filings. - Business and individual tax return preparation. - Clean-up of messy or late books. - Monthly financial reports and planning sessions. Licenses and insurance. Bookkeeping needs a business license, and tax preparation has its own rules. Anyone paid to prepare federal tax returns must have a tax preparer ID (PTIN), and e-filing requires registration. Some states require registration or licensing for tax preparers, and the title "CPA" is reserved for licensed Certified Public Accountants. I will register for my federal PTIN before the first return, and our state requires no extra license for tax preparers. We use engagement letters that define the work, carry errors and omissions and cyber insurance and follow the federal rules for protecting taxpayer data. We do not give legal advice, and we refer clients to a CPA or attorney when needed. Where things stand today. I have worked as a bookkeeper for seven years, I will have my tax preparer ID before tax season, I keep books for four small businesses on the side and I have a sample engagement letter.

Problem & Opportunity

Small business owners near us need help with their books and taxes, and many are behind. 1. Messy books. Many owners track money in a shoebox or a spreadsheet. 2. Missed deadlines. Late filings cause penalties and stress. 3. Missed deductions. Owners often pay more tax than necessary. 4. Cost. Large accounting firms charge more than small businesses can pay. How we know people want this. Four business owners already pay me monthly, and an attorney said she would refer clients.

Products & Services

What we sell. 1. Monthly bookkeeping contracts. Ongoing bookkeeping for a monthly fee. Our plan assumes an average of about $455 per client per month in Year 1, rising to about $505 by Year 5. Software and direct costs run about $110 per client per month. We expect about 120 client months in Year 1 (about ten clients on average), growing to about 431 client months a year by Year 5. 2. Seasonal tax preparation. Business and individual tax returns, mostly from January to April. Our plan assumes an average of about $485 per return in Year 1, rising to about $540. Direct costs run about $90 per return. We expect about 60 returns in Year 1, growing to about 215. Our prices. Monthly bookkeeping from $400. Business tax return from $600. Individual return from $250. How it works for the customer:
1. A free consultation to understand the business and the books. 2. A written proposal with the scope, fee and deadlines. 3. Secure document sharing, monthly bookkeeping and reports. 4. Tax return preparation, a review with the client and e-filing. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 78% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Small business owners, freelancers and contractors. - Restaurants, shops and service businesses. - Nonprofits and small organizations. - Individuals with self-employment or rental income. Where we will work. Clients in our city and the nearby suburbs and nearby, with a focus first on restaurants, contractors and small service businesses in our county, and remote clients where possible. Season. Tax work is busiest from January through April, and bookkeeping is steady all year. Monthly clients give steady income, and tax season brings extra revenue. Our plan is careful on purpose. About ten monthly clients and 60 tax returns in Year 1 is a workload the owner can handle well, with extra help added later.

Competitive Landscape

Other choices customers have:
1. Larger accounting firms. Metro Accounting (a made-up name) charges about $500 a month for a small business; known for CPAs, but pricey for small clients. 2. Online bookkeeping and tax software. Cheap, but without personal advice. 3. Other independent bookkeepers and tax preparers. We compete on service and specialty. How we will win customers: clear communication, accurate and timely work, secure systems, fair prices and a focus on small businesses.

Marketing & Sales Strategy

How people will find us. - A simple website with clear services and fees, and a free Google business listing. - Referrals from banks, attorneys, insurance agents and business coaches. - Free workshops for small business owners at libraries and chambers of commerce. - Asking every happy client for a testimonial and a referral. - A monthly email with simple tips and deadline reminders. Marketing budget. About $5,000 a year for marketing and referral fees. The brand, website and business cards are paid for from startup costs.

Operations Plan

How the business runs day to day. Clients and work. The owner meets clients, sets up books, does the monthly work and prepares returns. In Year 1 the owner works alone. We add one bookkeeper in Year 2 and grow to three by Year 5. Each client has an engagement letter, a secure folder, a monthly checklist and a deadline calendar. Equipment. About $3,000 to start: two laptops and a document scanner; dual monitors; printer. We set aside about $1,000 to $1,500 a year for repairs and replacements. Upkeep. Client files backed up securely, software updated, deadlines tracked and continuing education completed each year. Safety. Careful protection of client data: secure file sharing, strong passwords, two-step logins, encrypted backups and a written information security plan. Running costs in Year 1: software subscriptions about $6,000, marketing and referral fees about $5,000, admin and professional insurance about $6,000. Scheduling and billing. Online accounting and invoicing software, with monthly clients billed by card in advance.

Management & Organization

Who runs the business. Jessica Singh, owner. As owner I will do the bookkeeping and tax work, meet clients, manage deadlines, market the firm and handle the money side of the business. I plan to pay myself $62,000 a year in salary in Year 1. Crew. Bookkeepers at about $44,000 a year each (or part-time pay): none in Year 1, one in Year 2, one in Year 3, two in Year 4 and three in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Robert Mitchell serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: register the business, get the tax preparer ID, insurance and software, build the website and sign the first clients. Target start: January 2027, before tax season. - First year: serve about ten monthly clients and prepare about 60 tax returns, for about $83,700 in sales. - Year 2: add a bookkeeper, about $131,600 in sales, and a loss of about $30,000. - Years 3 to 5: grow to three bookkeepers and about $333,800 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: deadlines coming up, work in progress, invoices paid, new inquiries, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $73,500. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $8,300, listed item by item in the Startup Costs section (about $3,000 for computers, monitors, a scanner and a printer, $400 for tax preparer ID and registration fees, $2,300 for insurance and software setup, $800 for entity formation, engagement letters and bookkeeping, and $1,800 for the brand, website and business cards). - A cash cushion of about $65,200: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "cash cushion." - Together that comes to about $73,500 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $10,000. - Amount requested: $63,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect losses of about $22,600 in Year 1 and $30,000 in Year 2 while we build our customer base, then a profit from Year 3 (about $11,100), growing to about $29,800 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $939 a month are already included in our cash flow. What we are offering the lender: our equipment and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start with two or three clients and a few tax returns a month alongside your current job, using your laptop and a basic software plan. Startup can be under $1,500. - Phase 2: once you have more clients than you can handle part-time, go full time, add software and a bookkeeper and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Your tax preparer ID and any state registration or license. - A sample engagement letter and fee schedule. - A list of references, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Monthly Bookkeeping Contracts: about $455 per client month in Year 1, rising to $505; about $110 per client month in direct costs; about 120 client months in Year 1, growing to 431. - Seasonal Tax Preparation: about $485 per return in Year 1, rising to $540; about $90 per return in direct costs; about 60 returns in Year 1, growing to 215. - Owner salary: $62,000 a year. Crew: $44,000 a year each, from none in Year 1 to three in Year 5. - Other yearly costs in Year 1: software subscriptions about $6,000, marketing and referral fees about $5,000, admin and professional insurance about $6,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs