Franchisee Projected Profit & Loss Account
| Home Based Practice | Office Based Practice | Office Based Practice | |
Early Stages |
Established |
||
| £ | £ | £ | |
| Sales | 55,000 | 120,000 | 250,000 |
| Less: | |||
| Overheads: | |||
| Rent, rates, light & heat | - | 4,000 | 17,750 |
| Marketing costs | 3,000 | 3,000 | 5,000 |
| Wages | - | 36,000 | 87,000 |
| Computer sundries | 600 | 1,100 | 2,000 |
| Repairs & renewals | - | 1,000 | 2,000 |
| Postage & stationery | 2,500 | 3,500 | 17,000 |
| Motor expenses | 1,200 | 2,500 | 9,000 |
| Telephone | 800 | 1,200 | 3,000 |
| Management service fee | 4,675 | 10,000 | 14,500 |
| Sundries | 750 | 1,200 | 5,000 |
| Bank interest | 480 | 480 | - |
| Bank charges | 360 ______ |
360 ______ |
1,500 ______ |
| Total costs | 14,365 ______ |
64,340 ______ |
163,750 ______ |
| Net Profit | 40,635 ______ |
55,660 ______ |
86,250 ______ |
| Estimated value of business belonging to franchisee | 55,000 ______ |
120,000 ______ |
250,000 ______ |
These figures are by way of illustration only and whilst no guarantee can be given that these will be attained, it is our opinion that they represent realistic and achievable results.
Generally, Accountancy Practices are valued at one times gross recurring fees (GRF), but the final value usually takes into account any client losses during the first year after takeover.
The length of time it will take to achieve the above results will vary and depend upon the aspirations of each individual Franchisee.
The home base practice figures are, we feel, the maximum that can be achieved using your home as an office.
The office based practice would be necessary for those who wish to take their practice to the next level of profitability.
The office based example shown would be achievable within three years and turnover could be increased further with additional staff.
To speak to a CerTax Accounting representative, please call 0800 0283 018.
For an in-depth prospectus, click here