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Selling a small, but busy CPA/Tax practice in Glendale, CA. Established in 2008. The practice is operated by a CPA and one assistant. The assistant handles most of the calls and the day to day customer service. The practice provides year-round Income Tax, Sales Tax, Payroll, City Tax, and document filing services. Most of the clients are referral based. Clients are all seen by appointment-only. The CPA will work with the new accountant to transition his clients and practice over to assure maximum client retention and satisfaction. The CPA will also sign a Non-Compete Agreement.
ABOUT OUR SERVICES
The practice provides tax and document filing services. The tax services include Income Tax, Sales Tax, Payroll, and City Tax filing. The document filing services include incorporation and other basic document filing services. The document filing services are a successful complement to the tax practice as it generates about 25% of the annual gross revenues.
SELLING PRICE AND BREAKDOWN
The CPA is motivated to sell as soon as possible and is interested in cash only offers. For this reason, he is willing to discount the price to $275,000. Estimated Breakdown of Revenues and other Figures Total annual gross revenues are about $360,000
Percentage Breakdown based on services provided:
40% Income Tax
7% Sales Tax
8% City Tax
10% Misc. Services (1099 filing, audit representation, consulting, etc.)
25% Document Filing & Related Most of the Income Tax Returns are filed on the Form 1120 and 1120S.
Most of the clients are a small to mid-size businesses will less than $1 million in annual gross revenues. Income Tax returns are filed using the LaCerte tax software. Filing approximately 168 business Income Tax Returns with an average fee of $800 per return and approximately 110 individual Income Tax Returns with an average fee of $275 per return. Have 24 payroll clients and 90 sales tax clients that bring in a regular stream of revenue. The CPA charges a flat fee for almost all his services and collects almost all the service fees in advance, so you don't have to deal with billing and AR issues.
THE OFFICE, LEASE, AND PHONE SYSTEM
The office was professionally renovated 4 years ago and is in a move in condition. The CPA spent over $25K on tenant improvements. It is located on a major street and has a visible office sign. The office is about 1000SF, has 4 separate rooms plus a large waiting room. It has 5 reserved parking spaces and plenty of street parking. It has laminate floors, 8FT tall doors, high ceiling, tinted windows, air conditioning, a server room, network connection in all the rooms, new paint, and more. The office lease is only $1840/mo. The lease expires in May 2017, but the landlord should have no problem renewing the lease. The building and garage are secured. All the phones are connected through VOIP, so the phone number and the phone system can be easily transferred. TO
GET MORE INFO
The CPA is willing to share the details of his practice with qualified buyers that have proof of funds. To gain more information, please email your name, firm name, address, and phone number. He will personally call you to discuss further.