Accounting Financial Services Plan - Research Paper Example

?Accounting Financial Solutions Business Plan The modern economic climate is forcing consumers to be more protective of their money and more conscience of their spending. We will utilize both online and offline tactics to do not only educate consumers on the proper management of their finances, but also we will provide affordable services that will put customers on the fast track to financial freedom. Hence our primary goals are first to expand to acquire a commercial building for business operations as well as develop and execute a strategically sound marketing campaign to increase the volume of clients received each month. Our company strives to do more than simply provide consumers with a service, it is our goal to educate people on how to better manage their income. We exhibit a more consumer friendly corporate persona, which makes us more attractive for an economy conducive to socially responsible business ethics. The economy is becoming increasingly fragile which makes consumers less predictable. Accounting Financial Solutions will help individuals avoid risky economic behavior while ensuring long term spending from the private sector. Moreover, with foreclosures at an all time high, consumers are increasingly searching for peace of mind that their own property will not be foreclosed on in the future, our company helps them identify their personal income mile markers so they know if they how much effort is required of them to maintain their style of living. Executive Summary Accounting Financial Services (AFS) is a fairly new company with its operating principal possessing almost 15 years of industry specific experience. Our organization is operated by the proprietor. The major barriers preventing AFS from realizing its ideal operating capacity are public visibility and consumer confidence. AFS has an existent customer base that expresses skeptic attitudes towards the existing residential operating space. With Identity theft on the rise, less consumers are willing to consult with individuals outside of brick and motor locations. Our existing clients represent a delicate marketing potential that is not being tapped because of our residential space. Intuits Stimulus Grant will provide the necessary capital to acquire a brick an motor location in order to generate consumer confidence in Accounting Financials Solutions ability to deliver. Our target consumer resides in Camp Spring, Maryland and seasonly seeks tax preparation services. Local small business make up our consumer base for our bookkeeping service. In order to access this community we have developed a marketing strategy to create an online presence and capitalize on target local markets. We also plan to educate consumers about our brand niche, “a friendly business with commercial expertise!” Pricing The price for Tax preparation at Accounting Financial Solutions ranges between $80 to $170 pending on the size and amount file being processed. For Personal and Business Accounting we charge a percentage of the account, pricing is negotiable but accounts for the projected amount of time consumed. Promotion 1. Leverage referrals from professional contacts and individual clients to make this an integral part of how we conduct business. 2. Enhance our profile within our targeted industries and areas of specialization through being cited as possessing unique expertise in these areas. 3. Generating healthy friendships with clients and maintaining a constant out of work relationship. Service Our business and individual clients judge our competence based on how we treat them. This is their primary – and in many cases their only measurement of our capabilities. We must have each of our clients answer positively to these questions: Do they act in a professional manner? Do they know who I am? Do they know my name? Are they genuinely concerned about my best interest? Will they defend their advice and council if needed? Market Research Our market research is conducted by mail out surveys to get a more accurate depiction of our costumers response to our services, as well we utilize think tanks for access to their market descriptions, predictions, and monitoring. Although much of the information is packaged with expert analysis, we also produce in house analysis to further concentrate our marketing strategy to maximize its effectiveness. Financials, Budgets, and Forecasts Our business plan predicts annual revenues of $291,200 a single year operating at maximum capacity. To account for such projections we took the average time per file, divided by the amount of time in a total work year multiplied by our lowest fee. After the acquisition of only 5 additional CPA certified accountants our maximum capacity projection is $1,456,000. The marketing plan is based on these three guidelines: Increasing the visibility of Accounting Financial Solutions in order to reach operating capacity. We will continue to invest in recruiting clients based on a percent of total revenues. As our revenues increase, so will our marketing resources. We will forecast and track revenues on a detailed basis to provide objective feedback regarding progress in the areas of industry expertise, specialization, and client revenue source by type. Break-Even Analysis Due to the abnormally low cost of doing business, the break even analysis is relatively simple. Predicting a maximum of $24,000 for operational expenses, simply servicing 300 clients per year is enough to cover all operational cost. This accounts for less than 1% of the local population. Sales Forecast At a rate of 70 new clients per week, we are able cover operational cost for the year in a little over a single month. Operating at half capacity puts us on track to cover the annual operational cost in just over two months. We intend on operating at full capacity for a minimum of 5 months out of the year. Expense Forecast Marketing expenses will share a direct relationship with company revenue. 10% of the company budget is dedicated to marketing during off season, while tax season commands 15% of the budget due to the heightened social conscientious of tax preparation services. Linking Sales and Expenses to Strategy Our marketing expenses represent a small portion of total revenue generated, as illustrated on the following graph. Regardless, marketing-based efforts and our correlation and reports to the partners regarding our progress at scheduled meetings. We expect to see our strategies impact the bottom line in the preferred areas. Our innovative approach is a great fit. An unexpected decrease in revenues will impact our marketing budget, and we will address this issue if required. This chart indicates that each year our organization can laterally increase the overall amount of clients processed by simply acquiring one new certified accounting per year. This will also require marketing to command a greater percentage of the budget. Despite the belief that a consistent percentage of the budgets correlates to new customers purchasing the service, it is essential to diversify the markets so that the the company can began to build it reputation in markets that will receive new attention after the primary markets tops out. To cope with such expectations the marketing strategy increases by 5% in the second year, 2% in the third year and another 8% in the forth in terms of how much of the budge it controls. Financial History and Analysis Accounting Financial Solutions is currently operating in its start up phases which means there is limited information to provide a financial history statement. The company incurred licensing cost as well as State registration fees. Due to the current residential location, operational cost are almost non-existent. Currently AFS is operating at less than 20% of maximum capacity. Financial Plan 12-Month Profit and Loss Projection In the 12-month profit and loss projection we assume our company is operating at half capacity during the off season and at maximum capacity during tax season. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 35 Clients 70 70 70 70 35 35 35 35 35 35 35 $80 each $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $2800/m $5600 $56 $56 $56 $28 $28 $28 $28 $28 $28 $28 The chart indicates that given the first year projections are accurate, operational cost of $24,000 would occupy 31% of the budget, and at a first year dedication of 10% marketing requires $7,800 to command 10% of the budget. Projected Cash Flow This cash flow diagram is assumes that Accounting Financial Solutions assumes control of the $10,000 rewarded by the Intuit Grant. Additionally, the chart indicates that the service is paid for upon completion by our firm. Finally, marketing expenses are diverted to separate accounts at the end of ever month. This is critical to create a monthly marketing strategy. This quarterly cash flow diagram indicates that our organization will be able to not only make it through an annual cycle, but profit pending an effective marketing program. In the diagram, we accounted for operational cost as well as the cost of marketing operating at 10% of the overall budget. The projections were based on the assumption that during tax season Accounting Financial Services reaches maximum capacity while during the off season the company operates with nearly a 50% reduction in clients. Read More