SOLD
Accounting Firm - Sydney Northern Beaches

This well-established accounting firm, located on Sydney’s mid Northern Beaches, presented an attractive acquisition opportunity with maintainable fees of $820K. Operating for over 20 years, the firm is built on strong client relationships, offering tax returns, financial statements, and bookkeeping services for SMEs and SMSFs. Its long-standing reputation has attracted multi-generational clients, reflecting its focus on high-end, attentive service. Significant growth opportunities exist in business advisory and financial planning, as the firm currently declines new clients due to capacity limitations.

Key Highlights:

Client Base:

• 217 client groups serviced in FY 2022, averaging just over $4K per group annually.
• 23% of clients fall in the $5K–$10K range, 19% in the $10K–$30K range, and 34% exceed $30K annually.
• Top 20 client groups contribute nearly 60% of fees, with the largest client accounting for 34% due to a special project.
• Clients are predominantly located on the Northern Beaches, with others across Sydney and a few interstate.

Revenue Breakdown:

• 371 lodgements in 2022, including 229 ‘I’ returns (14% of revenue) and 43 company returns (55% of revenue).
• 30 SMSFs contributed 15% of fees, while BAS lodgements accounted for 9% of revenue.
• Average billing per client: $2,374.

Operations & Infrastructure:

• Staffing includes 2 FTE professionals, a contractor, and 1.2 FTE support personnel, crucial for transition.
• Uses MYOB AE tax, MAS, BGL 360, and Simple Ledger software, with clients split between MYOB and Xero.
• Virtual server with 7 desktops ensures efficient operations.

Premises & Transition:

• 69m² premises owned by the principal, with favourable lease terms offered to assist with a smooth transition.
• Fee base is relocatable, though retaining the current location initially is recommended for client retention.
• Vendor available for up to 2 years to ensure a seamless handover, particularly for larger clients.

This firm offered a rare opportunity for a buyer seeking a strong client base, reliable revenue, and growth potential, with the added benefit of vendor support during the transition.