Virtual_Bookkeeping

A Business Plan for BIZ DIRECT Virtual Bookkeeping Service Table of Contents 1. Form of Business 2. Short Term Objectives 3. Long Term Objectives 4. Personnel 5. Insurance 6. Location 7. Business Risk 8. Products and Services 9. Customers/Clients 10. Locating Clients 11. Competition 12. Marketing Plan 13. Equipment and Materials Needed Chosen Name BIZ DIRECT SERVICES Form of Business Proprietorship A proprietorship business form has been chosen. This will create personal identification and responsibility. Each client will be dealt with on an individual basis and confidence and good reputation will be used for business growth. Core Business Values: Bravery Creativity Passion Professionalism Mission The BIZ Direct seeks to provide a full suite of bookkeeping, tax and management accounting services for small, social enterprise/community businesses and charities, allowing business owners to not only save money over in-house accounting and ensure their compliance with tax laws and accounting reporting, but to make valuable management decisions of their business/services and funding. BIZ DIRECT has set the following objectives: • To launch the virtual and contact bookkeeping services that will offer professional services for target clients anywhere in the UK. • To start the service in two major UK cities; Liverpool and Manchester in the first and second year, then extend to more cities in the third and fouth year. • To engage a network of qualified and professional bookkeepers in target cities and to offer Server/client based localised bookkeeping services. • To achieve gross income of £60,000 each year minimum in three years • To recruit 15 home-based/part-time computer-base bookkeepers in three years Aims: 1. The aim of the business is to establish a professional virtual bookkeeping service that will reflect quality performance and fill a wide range of business needs regardless of where the business is located. Short Term Objectives Business Establishment 1. To create for clients proper accounting, inventory, and financial controls that will aid them by giving constant business growth on a profitable basis. 2. To make available to clients ‘ one-touch’ accounting systems that have been designed for their business, and have these systems available at any time when required for effective and proactive business decision making in a virtual environment. 3. To meet the daily needs of our clients in a quality assured environment Long Term Objectives A Growing Business 1. To promote (through direct mail, web marketing and personal contact) services and products to prospective clients in 5 cities in UK in a way that will cause business growth on a continuing steady pattern. 2. To gradually expand the business as a network bureau with home-based qualified associates/ area managers at different locations in the UK who have been adequately trained in business management. SWOT analysis: Strengths: • The business is set up by a professional who is well experience in business management, information technology, project planning/ management and financial management in both private, third sector and public sectors. • The use of virtual-based approach in managing daily business finance. • The use of network of local home-based bookkeepers, with local knowledge and expertise • The professional approach and quality driven system that will ensure that clients’ needs are met • The availability of training for both network bookkeepers and clients on current and emerging issues and regulations. • Knowledge of the third sector and bid writing skills/ procurement process Weaknesses: • New business development • Possible competition with accountant films • Cashflow • Scope of control Opportunities: • Market development (more accountability measures on businesses) • Network operation, virtual based • More self-employment or small business creation • More outsourcing of bookkeeping demand from accounting firms and businesses • More development of social enterprises and community businesses. • More demand of financial accountability and value for money on the third sector. Threats: • Unstable economic environment • More demand on secured IT systems • Sustaintial financial availability Personnel Trained and Qualified 1. Present. My own background includes exclusive training in business and project management and accounting systems. I have completed a wide variety of different company’s books which include general sales, construction, automotive, and finance. They include the preparation of daily transations inputs to financial reports and statements. I have had over 15 years experience at senior management level in organisations and business development. 2. I have much experience in advsing small businesses on financial management, have offered computerised bookkeeping training for self-employed and adults within the lifelong learning scheme of the local education dept upto Level 3 NVQ qualification. I have also offered fund raising and management consultancy service for local organisations and served as grant assessor under the Urban fund programme of the European Objective One. 3. My educational and professional background includes graduate of Public Adminstration and finance specializing in Accounting and Business Management, completion of Certified bookkeepers programme and delivered bookkeeping and computerized accounting training. Am also undertaking a teaching qualification training PTLLS, which will enhance my training and support for the network bookkeepers and the clients. 4. Future. Any additions to personnel will be based on their individual training in all facets of business accounting and information technology with the ability to converse with clients on a professional and knowledgeable basis. Insurance Insurance Coverage All business insurance will include full coverage of all assets of the business in case of loss by theft, fire, or other related reasons. Location The location of the business will be in my home located at . Overhead costs will be kept at a minimum. A room within the home will be fully equipped and utilized for the bookkeeping service business. My present residential location is within an area where over 1,000 small prospective business clients are located. Business Risk 1. The normal business risks which result from unprepared management, inadequate capital, and lack of accounting have been given careful consideration and are being covered as part of this business plan. The identified weaknesses will be minimised by setting up the business in a professional footing, seeking the niche market of accounting firms outsourcing bookkeeping services, marketing how our service can compliment and benefit local accounting firms. Make adequate assessment of cashflow needs and set up an effective control mechanism that will ensure that all area bookkeepers are managed and monitored effectively. 1. The current business climate shows a definite need and a future expansion potential for those who are qualified to give professional bookkeeping and accounting services. The server/client system will be secured and ensure that all clients information are protected. Products and Services Provided General Business Bookkeeping Products 1. The products I have available to clients will automise their financial management system, which include computerized daily bookkeeping systems for partial or full-charge accounting. They include journalized bookkeeping, the general ledger, and a variety of subsidiary ledgers. 2. 3. A complete computerised desktop filing system for daily transactions is furnished to clients for their use in giving stronger financial control. 4. A computer accounting program covering the entire integrated field of business bookkeeping will be available for serve/client distribution to clients when such becomes requested or desired. Other products: Training and support in business contiunity process and profit maximisation Training on ‘taking control’ on IT in business Effective credit control system, automated invoice , payment reminder, overdue payments letters alert services. Customers and Clients Services Types and Size of Businesses 1. All small businesses are potential clients. Where in-house bookkeeping is maintained, the professional completion of financial statements, business financial packages and corporate creations, special consultations and services will be available when requested. 2. For businesses that have no complete bookkeeping systems, these will be provided and serviced on a daily, weekly, or monthly basis as needed. Final year-end closings, tax returns, and management reports will be made available to all clients and customers. Private Sector: 4. Complete virtual and contact bookkeeping services are included as needed and requested by clients, including data entry for all sales, disbursements, payrolls and standard entries. Our bookkeeping service is customised to requirements. Depending on the complexity of the business and bookkeeping requirements, we will tailor our bookkeeping solution to meeting the customer service needs and also make suggestions to help streamline processes, with a view to saving money in the long term. We are extremely flexible and very capable of delivering on requirements. Some of the areas we manage are as follows:- • Daily preparation and processing of sales invoices • Daily posting and allocation of sales receipts • Credit control and debt chasing • Daily processing, coding and posting of supplier invoices • Daily posting and allocation of supplier direct debit payments • Production of cheques in accordance with credit terms • Posting and allocation of supplier cheques • Daily analysing and posting of petty cash payments • Payroll journal entries • Depreciation journals • Interest journals • Accruals and prepayments • Bank reconciliations • Calculation of quarterly VAT returns 5. Detailed computation and completion of financial statements are made available as a separate service for those clients who already maintain in-house journalized bookkeeping. 6. Special services covering business financing, year-end tax returns, word processing, and corporate management are optional services available to clients on a contract basis. Charities: (Not-for-profit and social enterprise sector) At BIZ DIRECT, we understand the importance of correct reporting for charities and other, not-for-profit, organisations. When we are engaged by a charity, we will undertake all bookkeeping functions by producing Income and Expenditure accounts in compliance with current Charity Statement of Recommended Practice (SORP) and ensure the accounts preparation is done to a very high standard of compliance. As a charity, it is important to minimise costs so the organisation can focus on core aims, for this reason having bookkeeping done by a professional will enable to do both. By appointing BIZ DIRECT, the organization will benefit from: • Books being right the first time, with the work carried out by professionals, who are managed and trained, by qualified or certified bookkeepers of the Institute of Certified Bookkeepers, • Help for the organisation to understand their financial situation, • Help to adjust spending, if over budget, • Smaller accounting bills and compliance with legislation and regulations. • Help and advise on fundraising and bid writing. Locating Clients Advertising for New Clients 1. The advertising budget will be maintained on a very conservative basis. Direct mail to new businesses and businesses within the close vicinity of the hub office will be the primary source of clients in local area and at network areas, will use web marketing and network bookkeepers for local marketing. Each of these businesses will be given personal contact with a visual display of all products and services offered. 2. All direct mail advertising will come from proven solicitation methods covering the exclusive systems designed and available for the client’s specific business. 3. Referrals will be gained from satisfied clients and used in the promotion of new customers. 4. Direct telephone solicitation will be used when personnel (able to give proper presentations) can be located and utilized. All clients will be kept in contact on a monthly personalized basis. Initial Promotion 1. Two hundred and fifty personal letters to the Chamber of Commence members, friends and relatives will be sent announcing the opening of my new business, asking for referrals, and offering a “thank you.” Business cards will be included with each letter. 2. Ten personal letters will be mailed each business day to all small businesses within a one-mile radius of my business location advising them of my business service and confirming a specific personal visit with an systems presentation. 3. Ten letters with brochures will be mailed each business day to new businesses within the trade area advising them of the available bookkeeping systems and offering free consultation services. 4. A one-column by five inch local newspaper ad will be run weekly for the first month of business (together with a “FREE” published article written about the business, personally, and the service I offer printed in the same newspaper). 5. Ten personal contacts will be made daily as a follow-up to the written requests for appointments. 6. Ten follow-up telephone calls will be made daily to new businesses who have been mailed letters and brochures. 7. All letters mailed and telephone calls made will emphasize the personally designed accounting systems, and other services I have available. 8. Each presentation visit will include a display of the virtual filing system and simplified accounting forms available for client use. Competition Other Competitive Bookkeeping Services 1. Other accounting services within the cities should create a constant source of new clients. This would be caused due to the many additional services I will offer. With the utilization of updated systems and programs, plus a weekly contact, financial statements can be completed immediately at the end of each month, which is what clients desire. Lack of prompt service will create immediate interest from those who want quicker action. 2. Some competitors (having been in business for many years) becomes lax and not willing to give complete service to clients. 3. Having many additional business services available through the fundraising packages, corporate articles, virtual friend and year-end closings will add to client interest. 4. My pricing and billing structure gives great flexibility and provide prospective clients quick service quotations. 5. operating 24/7 financial statement information at a touch of a button/key as well as localised contact with home-based staff will generated interests from business. Overall Marketing An Expanding Area Marketing is a management process responsible for identifying, anticipating and satisfying customer requirements profitably.(CIM) 1. The phase one target location of the business hub are growing commercial areas (Liverpool & Manchester). New retail stores are being created each year. Shopping centres are large and fully occupied. 2. Based on present studies, the need for professional bookkeeping services, especially virtual services, becomes greater each year. 3. Small businesses/ social enterprises are maintaining a continual growth pattern. 4. Population within the areas is increasing and demand for services is following the same pattern. Why Will Clients be Attracted 1. The products and services offered are more complete than those offered by the competition and are in increasing demand as a greater number of small businesses and self employed are created. 2. 3. The combined personal “on site” and virtual service (24/7) without waiting for meeting, contact or delivery, with exclusively designed systems for businesses will create interest. 4. My training and background plus that of personnel will be a positive plus in present and future marketing. 5. Competitive price and free consultaion service 6. We offer opportunities to work from home with all essential support and materials will attract experienced, qualified bookkeepers, part-qualified accountants and even those on full/part time employment who would like the opportunity to work weekends or evenings when at home, will give the business the chance to engage team of vast knowledge and experienced workforce to benefit our clients. Equipment and Materials Needed for Professional Service Electronic Equipment and Materials In order to prepare modern financial documentation in a computerized fashion, the following equipment is considered necessary: 1. A computer with monitor. £495.00 2. A server system £695.0 3. A printer for use in preparing journals and columnar presentations. £95.00 4. A laser printer for high quality financial statements. £159.00 5. A full capacity printing calculator. £45.00 6. A Cisco or other remote router system £795.00 Computer Programs and Materials 1. Sage multi-user/ client manager and Quickbooks Premier Pro Advisor £1,390.00 2. A Payroll Plus Program £595.00 3. Client file displays £159.00 4. Computer Paper and Office Supplies £120.00 5. A remote assistance software £695.00 Furniture and Fixtures 1. An executive size office desk and chair £210.00 2. A four-drawer business filing cabinet £69.00 3. Two customer arm chairs £105.00 4. Office bookcase, decorations and planters £95.00 Total £5,722.00