The Sorcerer's Accountant

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Accounting and Bookkeeping Business Plan

Appendix

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unit Sales
Tax Preparations 8 10 11 16 10 10 10 10 10 10 10 10
Cost Accounting Analysis 5 4 2 2 6 6 6 6 6 6 6 6
QuickBooks Services 4 4 4 5 5 5 5 5 5 5 5 5
Bookkeeping Hours 0 50 70 90 100 120 140 160 180 200 220 240
Total Unit Sales 17 67 88 113 121 141 161 181 201 221 241 261
Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tax Preparations $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00
Cost Accounting Analysis $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
QuickBooks Services $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00
Bookkeeping Hours $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
Sales
Tax Preparations $6,000 $7,200 $8,400 $12,000 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Cost Accounting Analysis $4,800 $3,600 $2,400 $1,500 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
QuickBooks Services $1,200 $1,200 $1,200 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Bookkeeping Hours $0 $1,500 $2,100 $2,700 $3,000 $3,600 $4,200 $4,800 $5,400 $6,000 $6,600 $7,200
Total Sales $12,000 $13,500 $14,100 $17,700 $18,000 $18,600 $19,200 $19,800 $20,400 $21,000 $21,600 $22,200
Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tax Preparations 5.00% $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50
Cost Accounting Analysis 3.00% $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
QuickBooks Services 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Bookkeeping Hours 50.00% $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00
Direct Cost of Sales
Tax Preparations $300 $360 $420 $600 $375 $375 $375 $375 $375 $375 $375 $375
Cost Accounting Analysis $144 $108 $72 $45 $180 $180 $180 $180 $180 $180 $180 $180
QuickBooks Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bookkeeping Hours $0 $750 $1,050 $1,350 $1,500 $1,800 $2,100 $2,400 $2,700 $3,000 $3,300 $3,600
Subtotal Direct Cost of Sales $444 $1,218 $1,542 $1,995 $2,055 $2,355 $2,655 $2,955 $3,255 $3,555 $3,855 $4,155
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Bookkeeper training-period wages $800 $0 $0 $0 $0 $0 $400 $0 $0 $0 $0 $0
Max Greenwood $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Bookkeeper Manager $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Benefits 10% $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Total People 4 4 4 4 4 4 5 5 5 5 5 5
Total Payroll $8,500 $7,700 $7,700 $7,700 $7,700 $7,700 $8,100 $7,700 $7,700 $7,700 $7,700 $7,700
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $12,000 $13,500 $14,100 $17,700 $18,000 $18,600 $19,200 $19,800 $20,400 $21,000 $21,600 $22,200
Direct Cost of Sales $444 $1,218 $1,542 $1,995 $2,055 $2,355 $2,655 $2,955 $3,255 $3,555 $3,855 $4,155
Other Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $444 $1,218 $1,542 $1,995 $2,055 $2,355 $2,655 $2,955 $3,255 $3,555 $3,855 $4,155
Gross Margin $11,556 $12,282 $12,558 $15,705 $15,945 $16,245 $16,545 $16,845 $17,145 $17,445 $17,745 $18,045
Gross Margin % 96.30% 90.98% 89.06% 88.73% 88.58% 87.34% 86.17% 85.08% 84.04% 83.07% 82.15% 81.28%
Expenses
Payroll $8,500 $7,700 $7,700 $7,700 $7,700 $7,700 $8,100 $7,700 $7,700 $7,700 $7,700 $7,700
Marketing/Promotion $10,000 $3,000 $3,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $1,275 $1,155 $1,155 $1,155 $1,155 $1,155 $1,215 $1,155 $1,155 $1,155 $1,155 $1,155
Software and Computer Expenses $2,500 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Total Operating Expenses $28,975 $13,655 $13,655 $13,155 $13,155 $13,155 $13,615 $13,155 $13,155 $13,155 $13,155 $13,155
Profit Before Interest and Taxes ($17,419) ($1,373) ($1,097) $2,550 $2,790 $3,090 $2,930 $3,690 $3,990 $4,290 $4,590 $4,890
EBITDA ($17,419) ($1,373) ($1,097) $2,550 $2,790 $3,090 $2,930 $3,690 $3,990 $4,290 $4,590 $4,890
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($5,226) ($412) ($329) $765 $837 $927 $879 $1,107 $1,197 $1,287 $1,377 $1,467
Net Profit ($12,193) ($961) ($768) $1,785 $1,953 $2,163 $2,051 $2,583 $2,793 $3,003 $3,213 $3,423
Net Profit/Sales -101.61% -7.12% -5.45% 10.08% 10.85% 11.63% 10.68% 13.05% 13.69% 14.30% 14.88% 15.42%
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $6,000 $6,750 $7,050 $8,850 $9,000 $9,300 $9,600 $9,900 $10,200 $10,500 $10,800 $11,100
Cash from Receivables $7,492 $6,025 $6,760 $7,110 $8,855 $9,010 $9,310 $9,610 $9,910 $10,210 $10,510 $10,810
Subtotal Cash from Operations $13,492 $12,775 $13,810 $15,960 $17,855 $18,310 $18,910 $19,510 $20,110 $20,710 $21,310 $21,910
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $13,492 $12,775 $13,810 $15,960 $17,855 $18,310 $18,910 $19,510 $20,110 $20,710 $21,310 $21,910
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $8,500 $7,700 $7,700 $7,700 $7,700 $7,700 $8,100 $7,700 $7,700 $7,700 $7,700 $7,700
Bill Payments $7,419 $15,396 $6,775 $7,203 $8,219 $8,360 $8,747 $9,065 $9,530 $9,920 $10,310 $10,700
Subtotal Spent on Operations $15,919 $23,096 $14,475 $14,903 $15,919 $16,060 $16,847 $16,765 $17,230 $17,620 $18,010 $18,400
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $15,919 $23,096 $14,475 $14,903 $15,919 $16,060 $16,847 $16,765 $17,230 $17,620 $18,010 $18,400
Net Cash Flow ($2,427) ($10,321) ($665) $1,057 $1,936 $2,250 $2,063 $2,745 $2,880 $3,090 $3,300 $3,510
Cash Balance $17,573 $7,252 $6,588 $7,645 $9,580 $11,830 $13,893 $16,638 $19,518 $22,608 $25,908 $29,418
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting Balances
Current Assets
Cash $20,000 $17,573 $7,252 $6,588 $7,645 $9,580 $11,830 $13,893 $16,638 $19,518 $22,608 $25,908 $29,418
Accounts Receivable $7,292 $5,800 $6,525 $6,815 $8,555 $8,700 $8,990 $9,280 $9,570 $9,860 $10,150 $10,440 $10,730
Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $32,292 $28,373 $18,777 $18,403 $21,200 $23,280 $25,820 $28,173 $31,208 $34,378 $37,758 $41,348 $45,148
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $32,292 $28,373 $18,777 $18,403 $21,200 $23,280 $25,820 $28,173 $31,208 $34,378 $37,758 $41,348 $45,148
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $6,896 $15,170 $6,536 $6,929 $7,941 $8,069 $8,446 $8,747 $9,200 $9,577 $9,954 $10,331 $10,708
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $6,896 $15,170 $6,536 $6,929 $7,941 $8,069 $8,446 $8,747 $9,200 $9,577 $9,954 $10,331 $10,708
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $6,896 $15,170 $6,536 $6,929 $7,941 $8,069 $8,446 $8,747 $9,200 $9,577 $9,954 $10,331 $10,708
Paid-in Capital $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Retained Earnings ($83,554) $15,396 $15,396 $15,396 $15,396 $15,396 $15,396 $15,396 $15,396 $15,396 $15,396 $15,396 $15,396
Earnings $98,950 ($12,193) ($13,154) ($13,922) ($12,137) ($10,184) ($8,021) ($5,970) ($3,387) ($594) $2,409 $5,622 $9,045
Total Capital $25,396 $13,203 $12,241 $11,474 $13,259 $15,212 $17,375 $19,426 $22,009 $24,802 $27,805 $31,018 $34,441
Total Liabilities and Capital $32,292 $28,373 $18,777 $18,403 $21,200 $23,280 $25,820 $28,173 $31,208 $34,378 $37,758 $41,348 $45,148
Net Worth $25,396 $13,203 $12,241 $11,474 $13,259 $15,212 $17,375 $19,426 $22,009 $24,802 $27,805 $31,018 $34,441