Earning Potential
Franchise Projected Profit and Loss Account (Certax Full Accountants & Qualified Accountants Packages only)
|
Home Based Practice
|
Office Based Practice
|
Office Based Practice
|
|
|
Early Stages
|
Established
|
|
£
|
£
|
£
|
|
Sales
|
60,000
|
125,000
|
250,000
|
|
Less:
|
|
|
|
|
Overheads:
|
|
|
|
|
Rent, rates, light & heat
|
-
|
4,000
|
17,750
|
|
Marketing costs
|
3,600
|
5,000
|
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
|
14,965
______
|
66,340
______
|
163,750
______
|
|
Net Profit
|
45,035
______
|
58,660
______
|
86,250
______
|
|
Estimated value of business belonging to franchisee
|
60,000
______
|
125,000
______
|
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.