Summit Books Bookkeeping and Advisory

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Summit Books Bookkeeping and Advisory is a bookkeeping firm in Colorado. We keep the books for small businesses each month, handle payroll support and help owners understand their numbers. Our clients are small business owners who want clean books and clear reports without becoming bookkeepers.

The problem is simple. Many small business owners fall behind on their books and then scramble at tax time or when a lender asks for statements. We keep the books current, send a clear monthly report and answer questions.

Here is what our numbers show. We expect sales of $90,225 in Year 1, growing to $396,650 by Year 5 as we add retainer clients and bookkeepers. We expect a loss of about $5,000 in Year 1 while we build our client list, then a profit from Year 2 (about $3,200), growing to about $47,200 by Year 5.

We need $43,000 in total. That covers $11,000 in startup costs (computers and a secure scanner, software setup, a website, training, insurance and legal setup) and a cash cushion for the first months. I am putting in $8,000 of my own money, and I am asking for a $35,000 SBA loan.

I am Rachel Dunn, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Summit Books Bookkeeping and Advisory will be a limited liability company (LLC) in Colorado, owned by Rachel Dunn. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Numbers should be accurate, on time and clear. We keep client information private and we are honest about the limits of what a bookkeeper does.

What we offer:
- Monthly bookkeeping retainers. Reconciled accounts, categorized transactions and a monthly report, for a flat monthly fee.
- Payroll, advisory and project work. Payroll support, clean-up of past books, budgeting and cash flow help, billed by the hour or project.
- Later, as we grow: outsourced controller services. The numbers in this plan do not include these.

What we do not do. Bookkeeping is not accounting, tax preparation, auditing or legal advice. We do not prepare tax returns unless we hold the right credentials and we refer clients to a licensed CPA or enrolled agent when needed.

The space. We work from a home office or small coworking desk. We budget $3,600 a year for workspace and internet in Year 1.

Rules and insurance. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and carry errors and omissions and cyber insurance. We handle client bank and payroll information, so we use secure tools, keep access limited and sign a confidentiality agreement with every client. We do not hold client money, and payroll tax deposits remain the client's responsibility unless a payroll provider handles them under a written agreement.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will talk with at least 20 small business owners about what they pay and need, and line up at least 5 who say they would sign a retainer. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Small business books often fall behind.

1. No time. Owners are busy running the business.
2. Costly mistakes. Missed deductions, late payroll taxes and bad records create stress.
3. Unclear numbers. Owners cannot tell if they are making money.
4. Lender and tax requests. Statements are needed fast.
5. Hard to find a good bookkeeper. Many owners are unsure whom to trust.

How we will find out if people want this before we spend money. I will talk with at least 20 small business owners and line up at least 5 retainers. Our Year 1 plan needs about 12 retainer clients on average and about 260 hours of other work.

Products & Services

What we sell. We have two offerings, each priced simply.

1. Monthly bookkeeping retainers. The plan assumes an average of about $425 per client per month in Year 1, rising to about $485 by Year 5. Software and supplies cost about $22 per client-month. We expect about 145 client-months in Year 1 (about 12 clients on average), growing to about 610 by Year 5.
2. Payroll, advisory and project work. The plan assumes about $110 per hour in Year 1, rising to about $126, with about $6 per hour in tools. We expect about 260 hours in Year 1, growing to about 800.

Our prices. A flat monthly fee by number of transactions and accounts, an hourly rate for projects and a written engagement letter.

How it works for a client:
1. A free call to understand the business and the books.
2. A written engagement letter with the scope, the fee and the privacy terms.
3. Secure setup of bank and software access.
4. Monthly reconciled books and a short report with a call to review.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for software and tools for each client. Our plan shows about 95% in Year 1. That money pays the bookkeepers, workspace, insurance and other bills. Bookkeeper pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Small service businesses, contractors and shops.
- Restaurants, salons and online sellers.
- Nonprofits and small organizations.

Where we will work. Clients anywhere online, with a focus on nearby businesses for in-person meetings.

How we sized the plan. Our Year 1 plan needs about 12 retainer clients on average, which one bookkeeper can handle with a part-time helper. I will check the real numbers by talking to owners before spending money.

Season. January through April are busy with tax preparation needs, and year-end brings clean-up work. The numbers show a yearly average.

Competitive Landscape

Other choices clients have:
1. Doing the books themselves with software.
2. Other bookkeepers and small firms.
3. CPA firms, which often cost more.
4. Online bookkeeping services.

How we will win clients: clear reports, on-time books, secure handling and a person who answers questions. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How clients will find us.
- Direct outreach and networking with small business owners.
- Referral partners such as CPAs, lenders, attorneys and business coaches.
- A simple website with services, fees and a contact form.
- A free Google business listing.
- A referral thank-you: a client who refers a business gets a free month.

Marketing budget. About $4,800 a year in Year 1 (about $400 a month), growing about 8% a year. The logo, website and photo are paid for from startup costs ($1,800).

Operations Plan

How the business runs day to day.

The workspace. A secure computer setup, a scanner, cloud accounting software and a client portal.

A normal month:
1. Collect and review bank and card transactions for each client.
2. Categorize, reconcile and review the books.
3. Send a short report and hold a call to review it.
4. Close the month, back up files and track hours and deadlines.

Privacy and accuracy. We use two-step sign-in, a password manager and limited access, keep client files in secure storage and delete them when the work ends. We keep a written checklist for each month and a second person reviews each client's books. We refer tax and legal questions to licensed professionals.

Equipment. About $5,000 to start: computers, second monitors and a secure scanner. We set aside about $1,500 a year after that.

Running costs in Year 1: accounting and payroll software about $6,000, marketing and networking about $4,800, errors and omissions and cyber insurance about $2,400, workspace and internet about $3,600, training and certifications about $2,400, and accounting and legal about $1,800. That is $21,000 in all.

Payment. Retainers are billed monthly in advance and project work after completion. Some clients pay in about 30 days.

Management & Organization

Who runs the business. Rachel Dunn, owner and lead bookkeeper. As owner I will keep books, find clients, train staff and handle the money. I plan to pay myself $40,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Bookkeeper (full-time): none in Year 1, one in Year 2, two in Year 3, three in Year 4 and four in Year 5, at about $42,000 a year each.
- Bookkeeper (part-time): one in every year, at about $24,000 a year.
- Client manager: one starting in Year 3, at about $48,000 a year.

We hire people who are accurate and careful, check references and run background checks (with the person's permission and following the law) on anyone who will see client financial information.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands professional services, a business attorney for a one-time review of the engagement letter, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (2 to 3 months ahead): talk with at least 20 small business owners and line up at least 5 retainers, register the LLC and get an EIN, open a business bank account, get insurance quotes, set up secure software and a website, have an attorney review the engagement letter and test the monthly process with one or two trial clients. Spend on software only after the first retainers are lined up.
- Year 1: open with the owner and one part-time bookkeeper, with about 12 retainer clients on average, $90,225 in sales and a loss of about $5,000.
- Year 2: add our first full-time bookkeeper, with about 235 client-months, $146,150 in sales and a profit of about $3,200.
- Year 3: add a second bookkeeper and a client manager, with about 420 client-months, $262,490 in sales and a profit of about $17,400.
- Year 4: add a third bookkeeper, with about 515 client-months, $328,060 in sales and a profit of about $31,300.
- Year 5: grow to about 610 client-months a year with a team of seven, $396,650 in sales and a profit of about $47,200.
Growth depends on signing and keeping retainer clients, accurate books and hiring careful bookkeepers, so treat the later years as goals, not promises.

What we check every week: retainer clients, books closed on time, hours per client, errors found in review, client renewals and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $43,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $11,000, listed item by item in the Startup Costs section: $5,000 for computers, second monitors and a secure scanner, $500 for business license and local permits, $1,500 for legal, engagement letter and accounting setup, $1,800 for logo, website and professional photo, $900 for first insurance payment, and $1,300 for software setup and training.
- A cash cushion of about $29,800: the deepest hole our cash falls into while we build our client list (about $8,600) plus about 3 months of running costs (about $21,300). Lenders call this "working capital."
- Together that comes to about $40,800, rounded up to the nearest $500: $41,000.
We are raising $2,000 more than that, $43,000 in all, to leave extra room for loan payments in the first years and for the weeks when clients pay late.

Where the money comes from:
- My own money: $8,000.
- Amount requested as a loan: $35,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender. SBA Microloans, which go up to $50,000 through nonprofit lenders, are another place to ask; their repayment times are usually shorter, so the monthly payment would be higher. Put any agreement with a lender, family member or friend in writing.

How we will pay it back. We expect a loss of about $5,000 in Year 1 while we build our client list, then a profit from Year 2 (about $3,200), growing to about $47,200 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $18,400, at the end of Year 2. The loan is planned at 12.75% interest over 10 years, so payments of about $517 a month (about $6,209 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

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 as a solo bookkeeper with two or three clients while keeping your current job. Startup can be roughly $1,500 to $3,000 for software, insurance and a simple website. Get your own quotes.
- Phase 2: once you have eight or more clients, add a part-time 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 training 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 engagement letter, fee schedule and confidentiality agreement.
- Proof of insurance, or quotes.
- Letters from clients who would hire you.
- A description of your monthly review process.
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 Retainers: about $425 per client-month in Year 1, rising to $485; about $22 per client-month in direct costs, rising to $26; about 145 client-months in Year 1, growing to 610.
- Payroll, Advisory and Project Work: about $110 per hour in Year 1, rising to $126; about $6 per hour in direct costs, rising to $6.80; about 260 hours in Year 1, growing to 800.
- Pay: Owner / Lead Bookkeeper $40,000 (1/1/1/1/1); Bookkeeper (full-time) $42,000 (0/1/2/3/4); Bookkeeper (part-time) $24,000 (1/1/1/1/1); Client Manager $48,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: accounting and payroll software $6,000, marketing and networking $4,800, errors and omissions and cyber insurance $2,400, workspace and internet $3,600, training and certifications $2,400, and accounting & legal $1,800. These grow between 5% and 15% a year as the business grows.
- Retainers are billed monthly, and some clients pay in about 30 days. At the end of Year 1 about $9,023 (10% of Year 1 sales) is owed to us by clients.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs