Discussion:Client asked if i can help with business plan
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Discussion Forum Index --> Tax Questions --> Client asked if i can help with business plan
Wkstaxprep (talk|edits) said: | 12 December 2007 |
| Hi everyone,
Client inquired if i can assist her with developing her startup company's business plan. mainly with the income statement, balance sheet and cash flow. I'm an EA, not a CPA. As far as i know, fincial info in a business plan is not required to be certified (as many times the owner does the entire business plan themself). My question is, my strength is in taxes, but i have worked at CPA firms for a number of years with financial statments. Should i meet with client to see exactly what is involved and is it wise or not wise to even get involved in this type of work. Oh yeah, of course, how much should i charge, lol? I think the best i can do is help her with the basics. Thanks for any feedback at all. Will | |
| 12 December 2007 | |
| Wks: there have been several discussions of somewhat related matters in the accounting forum. You could probably look down the page over there and find something relevant. Technically, I don't believe it's a compilation or a review of existing numbers, in your client's case, it's a pure projection: really an educated guess. Public libraries have books on putting together business plans, and I've found that some books are a lot better than others. I see no reason that you should not do this if you desire to get involved with it, but like me, you'll probably be a lot slower than a CPA would in getting it done, and should probably make a downward adjustment in your time or hourly charge to be fair. I think the SBA website has some info. on business plans also, but it's been a while since I've been over there. | |
| 12 December 2007 | |
| This is a great way to generate new loyal clients. I've done business plans for doctors, dentists,etc. Your right they don't have to be certified. The sources for your projections should be from reputable sources, such as the AMA or ADA thus giving credence to your work. Typically, I would negotiate the start-up bank debt as well. Some firms have flat fees for such work. Since my work is usually on going the total hours are'nt known so I charge by the hour. Tax research can be up to $165, tax work at $85 and accounting type work at a minimum of $50 an hour. I think any finance or accounting major with at least three years experience should be able to handle this task. There are many free samples of business plans available on the internet. | |
Wkstaxprep (talk|edits) said: | 12 December 2007 |
| Thank you CrowJD and thank you Jctmstx, your replies are greatly appreciated ! | |
Wkstaxprep (talk|edits) said: | 12 December 2007 |
| I just met with client, she is basically doing the business plan on her own and being guided by some sort of online coaching company that charges a $1,000 1 yr membership.
She asked me to review her already prepared financial statements and just make them look more professional. We agreed on a fee of $400. Thanks again folks. | |
TaxAssistCPA (talk|edits) said: | 12 December 2007 |
| Will:
The only work which requires a CPA is anything related to the 'attest' function: compilations, reviews and audits. You are fine to help with a business plan as long as it is clear that they are unaudited financial statements. I'm sure you will provide good advice especially with your tax background. I would charge your regular hourly rate and 'adjust' the number of hours downward only if you feel it is taking you more hours than a person who does business plans every day. Have fun! | |
