Business Idea for an Accounting Firm: Market, Customers, Competitors

This report presents a viable business idea for an accounting firm, including market analysis, customer base, competitors, needed skills, and sources of funding. It also includes projected profit and loss statements and a cash flow statement for two years.

BM564 ENTERPRISE AND
ENTREPRENEURSHIP

EXECUTIVE SUMMARY
 The report is aimed to present a business idea and it various aspects such as market,
customers, competitors.
 With this regard a well-articulated study has been carried out. It revealed that the
business idea is very much viable and having good ability to offer higher profits to the
organisation.

INTRODUCTION
 Entrepreneurship is a venture where a person or an entity takes some steps in order to
flourish its business idea.
 The report will be discussing future business idea, and some other aspects such as
customers, competitors, skills analysis, projected profit and loss and cash flow
statements, sources of funding etc.
 At the end of the report the vision about the business plan will be shared.

FUTURE BUSINESS
 The business would be an accounting firm and will be providing a range of accounting
services. There will be number of accounting services, which are to be offered to the
customers.
 The services such as security of regular pay check, employer provided benefits, such as
social security and medication plan.
 Employees are supposed to complete individual task.

CUSTOMERS
 The entity is to be providing personalized, dependable, and merit services so there
would be good size of customers.
 Mainly small and medium-sized organization will acquire its services, on the other
hands some households who are having security deductions from salary.
 Such customers are our and end users too.
 There are some organization such as government agencies, colleges and universities,
retail stores, hospitality businesses.

COMPETITORS
 The accounting firms specifically some innovative firms are our competitors.
 Firms like London chartered accountants, PwC, EY, BDO, RSM, Grant Thornton etc.
 All Big Four firms are having 84.3% market share in UK.
 And rest is in the hands of other firms.

SKILLS ANALYSIS
Possessed skills-
 Good ability to work as a team member.
 Ability to give strong leadership.
 Understanding of accounting.
 Knowledge of market trends.
 These skills are essential to take the business ahead.
Needed skills-
 Understanding of business environment to deeper level.
 Ability to use modern accounting tools and technologies.
 Appropriate oral communication etc.

PROJECTED PROFIT AND LOSS
ACCOUNT FOR THE YEAR 2023
particulars amount total
To salaries
To rent
To advertising
To lease charges
To bank charges
To stationary
To refreshment charges
To depreciation
Total expenditures
To accounting fee
To accounting consultancy fee
To grant from governments
Total revenue
Net Income for the year
200000
150000
50000
25000
15000
35000
12000
22000
350000
475000
35000
509000
860000
351000

PROJECTED PROFIT AND LOSS
ACCOUNT FOR THE YEAR
particulars Amount (in £) total
To salaries
To rent
To advertising
To lease charges
To bank charges
To stationary
To refreshment charges
To depreciation
Total expenditures
To accounting fee
To accounting consultancy fee
To grant from governments
Total revenue
Net profit for the year
275000
160000
60000
25000
25000
55000
15000
17000
622000
525000
Nil
632000
1147000
515000

CASH FLOW STATEMENT FOR THE
YEAR 2023 AND 2024
2023 2024
Cash flows from operating activities
Net Income
Adjustments with respect to operating activities-
Depreciation and amortization
Loss on sale of equipment
Changes in current assets and liabilities-
Increase in receivables
Decrease in prepaid expenses
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditures
Lease expenditures
Proceeds from sale of equipment’s
Net cash used for investing activities
Cash flows from financing activities
Proceeds from issuing debt
Dividends paid
Net cash provided by financing activities
Net increase in cash during the year
Cash at the beginning of the year
Cash at the end of the year
351000
22000
Nil
-5000
15000
383000
-25000
-25000
-
-
-
368000
142000
510000
515000
17000
Nil
-4000
20000
548000
-25000
-25000
150000
-25000
125000
648000
510000
1158000

BEP ANALYSIS
 BEP refers to the point of sales where the entity
does not make any profit and even not generate
loss.
 The accounting frim is very new in the market yet
it has been seen that the entity is making good
profit even in the beginning year.

SOURCES OF FUNDING
 As it is decided that it would be an accounting firm so the primary source of funding
would be venture-ship.
 Personal funds will be used for the ventures where the savings are to be used.
 Bootstrapping is one of such way for funding the entity. Bootstrapping refers to the
method of funding where external sources are avoided.

PLAN FOR OBTAINING RESOURCES
 Tangible resources such as cash, land, machinery, building etc.
 The organization will be purchasing some of it new and rest of second hand in order to
save money.
 The cash arrangement has to be done by self-contribution of all ventures.
 There is need of computers, air conditioners, coolers, fan, some other furniture, so in
initial phase just 50% of the need are to be purchased.

BREAKDOWN OF START-UP COSTS-
The start-up cost of the entity is £10,00,000
components amount
Registration charges 8000
Patent fee 5000
Digital marketing expenses for one year 50000
Purchasing tangible resources 400000
Intangible resources cost (except patent fee) 50000
Research expenses of business idea 50000
Expenses for installing technology of MIS 200000
Conventional marketing expenses 35000
Cash at hand 142000
Total cost 1000000

ORGANIZATION AND
MANAGEMENT INFORMATION
SYSTEM
 It is an accounting firm so the nature of organization surges demand of installing strong
MIS.
 The organization would be having a well suitable MIS.
 It is an accounting firm so there is huge need to protect data of clients.
 Here some smart tools such as Microsoft dynamics are supposed to be used.
 All aspects as data gathering, analysing data, reporting will be carried out using best
and protective system.

VISION FOR THE BUSINESS
 The vision of accounting firm it to be the most respected firm in the market.
 It aims to fabricate long and strong standing relationship with the clients.
 With this regard, personalized, dependable and merit services shall be provided to
them.

CONCLUSION
 Form the report above it can be concluded that entrepreneurship is a viable process of
taking venture.
 In the report a business idea has been presented considering various elements such as
products or services, customers, competitions, needed skills, sources of funding etc.
 At the end of the report project final statements are also drafted for two years.

REFERENCES
 Tipu, S. A. A., 2018. Business plan competitions in developed and emerging
economies: What do we still need to know?. Journal of entrepreneurship in emerging
economies.
 Han, S. and Kang, E., 2020. The marketing strategy to stimulate customer's interest in
art-gallery business plan. The Journal of Distribution Science, 18(8). pp.47-54.