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A BUSINESS PLAN

<I&S TAX SERVICES>

Prepared by
(XUELING HUANG)
(14 JAN 2018)
Table of Contents
Executive Summary 4
Business idea and goals 4
Business/operation strategy 4
Market opportunity/product summary 4
Financial summary 4

Strategic Plan 5
Mission statement 5
Vision 5
Goals 5
Values 5
Major responsibilities for the management of the practice (if applicable) 6
Legal Structure 7
SWOT analysis for Your Practice 5

Operational Plan: The Services Strategy 8


Qualifications, licences and registrations 8
Other licence or registration holders/to be acquired (if applicable) 8
Professional indemnity insurance 8
Business premises 9
Equipment required 9

Operational Plan: The Financial Plan 10


Start-up requirements (if applicable) 10
Operating requirements 10
Sources and uses of funds 10
Cash flow (refer to appendix) 10
Pricing of services (charge rates) 10
Financial Forecasts 11
Risk management policy 12
Set KPIs relating to key areas 12

Operational Plan: The People Strategy (if applicable) 13


Staff details 13
Ethical guidelines 13
Compliance with legislation 13
Staffing policies 13
Practice culture and values 13

Operational Plan: Practice Operating Systems 14


Practice work papers 14
Operational policies 14
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Risk management 14

Operational Plan: The Marketing Strategy 14


Attributes of the target client 14
Factors affecting marketing strategy 14
Objectives of marketing strategy (SMART) 16
Marketing KPIs 16
Points of differentiation 16
Marketing plan 16

Operational Plan: The Technology Strategy 17


Software 17
Capital equipment 17
Staff training (if applicable) 17
Responsibility for technology management (if applicable) 17
Budgeting for technology 17
Website (design, development, and ongoing maintenance, if applicable) 17
Risk management 17

The Long-Term Practice Direction 18


Culture 18
Branding and client communications 18
Rate of growth 18
Differentiation 18
Responsibility for implementation 18

Appendix 19

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Executive Summary

Business idea and goals

The aim of the business is to be a well-known tax and accounting practice for the local area. The
business will offer reliable, on-time and fairly priced services including taxation , accounting, book
keeping, loan and insurance broking and financial planning..

Business/operation strategy

The company was set up by a single experienced tax agent who has worked over 10 years in the
industry. Moving ahead, the company hopes to expand by leasing a shop in Cabramatta, Sydney. The
shop will be located on the ground floor of a shopping centre, where it will be easily seen by passing
consumers.

Set up a one-man stand company to start a tax agent and accounting practice from scratch. I am
going to lease a shop in Cabramatta Sydney. The shop must locate in the ground floor which can be
easily seen by passing shoppers.

Market opportunity/product summary


The business provides taxation services for local people seeking to finish their tax affairs. Once, the
taxation business has grown to a sufficient client base, other services such as loan brokerage, wealth
planning and SMSF audit will also be provided.
.

Financial summary

Due to the seasonal nature of the taxation industry, the business will expect a negative cash flow from
January to June 2018. However, from July 2018 onwards, the business will expect a positive cash
inflow from individual tax returns. In three years, the business will expect to earn over $200, 000 in
revenue.

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Strategic Plan

Points to note:
 Mission statement is principally a ‘reason for existence’ or ‘set of basic values’ which underlie all
the practice’s services. It could be published in client communications.
 Consider the overall direction for your Practice in relation to the range of services to be provided
and the type of client to be serviced.
 With this broad picture in mind, develop the mission statement.
For further guidance on completing this section, refer to the session ‘Planning for Your Practice’.

Mission statement

My practice seeks to offer a competitive price for individual taxation services and provide affordable
accounting services for local businesses. seek to offer attractive price for individual tax returns and
provide affordable accounting services for local businesses.

Vision

My vision is to establish the practice as a reliable, on time, affordable and value adding taxation and
accounting service for the Western Sydney area.

Goals

My goal is to achieve a 300% growth in revenue over the next three years by providing competitive
pricing for individual and business tax returns.

Values
(up to 30 words)
The values of my business include hard work, attention to detail and personalised service. This is
demonstrated through careful assessment of a client’s financial situation and on-site business visits.

SWOT analysis for Your Practice


(up to 100 words)
 Strengths- I have a CPA qualification and a tax agent license to practice. CPA qualified and
holding tax agent licence. I have over 10 years of experience in preparing tax returns. The
business is located in Cabramatta, a prime location.
 Weaknesses- Foreigner background with English speaking difficulties. The office is also small
in size. .
 Opportunities-To expand into other financial services including loan and insurance referrals
for banks and brokers. do loan referral and insurance referral for banks and brokers
 Threats-Changes in government taxation rules can limit the financial advice accounts provide
without an appropriate financial license. taxation rules, financial advice was limited for
accountant without financial licence.

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Major responsibilities for the management of the practice (if applicable)

Area of responsibility Partner Assisting staff members


responsible
Marketing and practice development

Finance and operations

Human resources

Technology

Others

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Legal Structure

Name of the practice I&S TAX SERVICES

ABN (if applicable)

Service entity (if COMPANY


applicable)
Owners of the XUELING HUANG
practice

Details of partnership
agreement (if
applicable)

I will set up a company with the business name ”I&S Tax Services”. I will be the sole director and
shareholder. During the busy season from July to October, I will hire an accounting student to help
with data entry and preparing simple cash books. I will prepare all the tax returns by myself to ensure
all transactions are accurate and reflect professional high standard of professional competence.

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Operational Plan: The Services Strategy

Points to note:
 Consider the services that Your Practice would offer and how would you be able to provide the
services.
For further guidance on completing this section, refer to the session ‘Planning for Your Practice’.

Qualifications, licences and registrations


Name: XUELING HUANG
Qualifications: BACHELOR OF COMMERCE
CPA Australia membership number:9252589
Any specific licence or registrations: TAX AGENT

Name: ………………………………………………..
Qualifications: ………………………………………………..
CPA Australia membership number: ………………………………………………..
Any specific licence or registrations: ………………………………………………..

Other licence or registration holders/to be acquired (if applicable)


Name: ………………………………………………..
Qualifications: ………………………………………………..
CPA Australia membership number: ………………………………………………..
Specific licence or registrations: ………………………………………………..

Professional indemnity insurance


CPA PII

Insurance and security issues


Public Insurance for the shop

Services offered

Service offered Relevant industry Relevant location Person responsible


Tax agent Tax returns CABRAMATTA XUELING HUANG

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Business premises

Location
Shop1/11 Hughes St , Cabramatta, NSW 2166

Location's proximity to customers and suppliers


South Western Sydney

Any additional information


Cabramatta is the central location of South Western Sydney. As more and more Vietnamese and
Chinese migrants move into this area to live, they look for accounts from the same background to
finish their tax affairs. The practice will be located in the centre of Cabramatta, on the ground floor of a
bustling shopping centre where it can easily be seen by passing customers.

Equipment required

Rent or purchase equipment


Equipment required includes a computer, two desks, a few chairs and a cabinet to store client files.

Any additional information


The nature of the taxation service is very seasonal – it is extremely busy during July to October as a
lot of people will drop into the office to complete their tax returns. Thus it is essential to have a good
quality computer and appropriate taxation software to quickly and reliably get the job done. The
waiting room must be properly set up to allow customers to queue in comfort.

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Operational Plan: The Financial Plan

Points to note:
 The ChargeRate and CashFlows spreadsheets, provided in the appendix,would assist you
in preparing detailed financial projections relating to fees, profit and cash flow.
 Complete these spreadsheets and include them in an appendix attached to your business
plan.
For further guidance on completing this section, refer to the session ‘Financial considerations
for Your Practice’.

Start-up requirements (if applicable)


To start-up, I will need to lease a shop and purchase computers, desks and taxation software.

Lease the shop and buy tax softwares and computers, desks.

Operating requirements
Before opening, I must set up all the computers and taxation software. The business will operation
between 10am and 5pm during the weekdays. It will also operate during the weekend by
appointment.

Get all the computers, internet tax software ready before open up. Open from 10am to 5pm during
weekday. By appointment during weekend to order to working people.

Sources and uses of funds(up to 100 words)


$40, 000 will be drawn from the home loan to fund initial capital requirements. Immediate costs will
include the rental bond of $15, 000 and $2,200 of rent paid one month in advance. Taxation software
will cost $1,500, computer and desks will be around $4,000 and the cabinet will be $4,000. There will
$18,700 remaining for ongoing working capital.

It is better to draw out $40,000 from home loan for a start-up fund. The initial cost will be rental bond
around $15000, rent pay in one month advance $2200, tax software $1500, computer and desks will
be $4,000, cabinet $4000, left $18,700 for ongoing working capital.

Cash flow (refer to appendix)


Please refer to the cash flow workbook.

Pricing of services (charge rates and value based pricing)(up to 100 words)
Basic individual tax returns will be charged at a flat rate of $80.
For every rental property, I will add on an extra $100 for a cumulative price of $180.
For small business tax returns, I will charge a flat rate of $2000 annually. This price includes 4
quarters of BAS.
Pricing for financial advice will be value based with a benchmark of $1,500 per client.
For the basic individual tax returns, I will charge a flat rate of $80. For each rental property will add on
$100 on top of basic price, that is $180.
For small business tax returns, I will charge a flat rate of $2000 annually, this price will include 4
quarters BAS.
Value-based pricing for financial advice will be around $1500 per piece of advice.

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Financial Forecasts(up to 100 words)
For the first year, the business will forecast 300 individual tax returns and 30 business tax returns for
total revenue of $84,000. Subtracting expenses of rent ($25,000), start-up costs ($9,500) and
maintenance costs ($10,000). I will expect a profit of $39,500. In three years’ time, I expect the
business to grow by 300% - to be earning revenue of over $200,000.

For the first year of opening, if I can do 300 individual tax returns and 30 business tax returns I will
have a income of $84000, take away rent $25000 and initial start up cost of $9500, ongoing cost of
$10000, I expect a profit of $39,500 in the first year. In three years time, by growing 300%, I will earn
over $200,000.

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Risk management policy
(up to 100 words)
Acquisition of professional indemnity insurance and public insurance.
Client files and documents will be safely stored in the cabinet.
Data will be backed up daily.
Upfront collection of cash for individual tax returns. Up front correct money for individual tax return.
Cash collected after quarterly BAS done for the business client. Collect money after quarterly BAS
done for business client.
Client payments will be collected within one month. Collect the client's payments within one month.
Constant monitoring of client’s quarterly GST to ensure a timely finish. Monitor Client's quarterly GST
finished on time.

Set KPIs relating to key financial areas


(max 200 words)
Chargeable time
-CPA myself- to be at 90% chargeable
…………………………………………………………………………………………………………….
Chargeable time (for employees and partners, if applicable)
-Part-time Book Keeper- to be 80% chargeable
…………………………………………………………………………………………………………….

WIP levels
WIP to be less than 14 days.

Write-downs/ write-offs
Maximum of 5% write downs

Growth
Each year will add on 100 Individual clients and 10 business clients - yearly income will increase
about $32000.

Client retention and turnover


The business aim is to retain the client for a minimum of 4 years.

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Operational Plan: The People Strategy (if applicable)

Points to note:
 Consider the number and type of staff that Your Practice need to employ.
For further guidance on completing this section, refer to the sessions ‘Planning for Your Practice’ and
‘Ethics, Quality Controls and Risk Management’.

Staff details

Role Starting Salary pa Commencing Chargeable


(salary only) Time %

Ethical guidelines
(up to 50 words)
…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….

Compliance with legislation


(up to 50 words)
…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….

Staffing policies
(up to 50 words)
…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….

Practice culture and values


(up to 50 words)
…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….

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Operational Plan: Practice Operating Systems

Points to note:
 Consider the how you would operate the day to day functioning of Your Practice.
For further guidance on completing this section, refer to the session ‘Ethics, Quality Controls and Risk
Management’.

Practice work papers


(up to 100 words)
The business aims to be paperless by using excel to prepare all business transactions. Clients will be
asked to electronically sign tax forms. Data will be properly reviewed before lodgement.

Aim to paperless, using excel to prepare all the business transactions, ask client electronically sign
the tax returns. Proper review all data before lodgement.

Operational policies
(up to 100 words)
From July to October, the business will concentrate on individual tax clients. From November 2018 to
May 2019, I will arrange business clients to come in one by one to bring in their papers and download
their bank transactions. The business tax returns will be finished within 14 days.

Risk management
(up to 100 words)
Risk management will be in line with CPA Australia guidelines and APEX 320.

Operational Plan: The Marketing Strategy

Points to note:
 Consider the target client profile for Your Practice
 Consider how Your Practice will be able to demonstrate value over other competitors
For further guidance on completing this section, refer to the session ‘Marketing and growing
Your Practice’.

Attributes of the target client(up to 100 words)


 Chinese and Vietnamese background customers from around south western Sydney.
 People who want cheap individual tax return services, aged 18-65.
 Businesses who want value added taxation advice.

Factors affecting marketing strategy

Competition No fluent Chinese-speaking accountant in Cabramatta


however Cabramatta has around 10 small sized
accounting practices, the price for doing tax returns are
very competitive.
Legal APES APEX or APES? must be complied with

Political Government Budget will affect many facets of tax affairs

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Economic
Economic growth is expected to be strong in 2018
however there will always be demand for taxation
services as it is required by law.
Technological Older accountants typically don't know how to use Excel
to prepare the cash book for clients so they generally
have to hire a few young assistant to do the job. However,
I will be using a combination of excel and advanced
accounting software to prepare tax returns. .
Sociocultural Asian background people prefer to hire accountants from
their own background.
Seasonality July to October will be a very busy time.

Potential strategic Potential partnerships with bank lending manager, home


alliances loan broker, insurance broker and financial planner.
Clients will be referred to earn a referral fee.

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Objectives of marketing strategy (SMART)(up to 150 words)
Annual increases of 100 clients for individual tax returns. Annual increases of 10 clients for business
tax returns each year.

Marketing KPIs(up to 150 words)


For every local newspaper advertisement placed, one new client will be recruited.
For every 100 flyers drop in the letterbox, 10 new clients will be recruited.
Through word of mouth, 20 new clients will be attracted each year.

Points of differentiation(up to 100 words)


Charming communication skills
Timely and experienced professional advice for client’s questions.
Offering fixed-fee tax and BAS returns
Offering two weeks turnaround on all tax and BAS returns

Marketing plan

Objective (SMART) Method Responsibility Timeframe Cost Anticipated


Results
To Recruit 100 new Flyers drop Owner May-June $500 100 new
individual tax in the letter each year individual tax
returns box around returns
the Suburb
of
Cabramatta

To let new clients to Facebook Owner Monthly Free 5 new client


know about the Wechat each month
practice posting

Local Owner Weekly $800 10 new


To recruit 10 newspaper business
business client in clients
twelve months

Business Plan Page 16 of 19


Operational Plan: The Technology Strategy

Software
Acquire Catsoft for doing tax returns
Acquire MYOB and QuickBooks for preparing books for medium sized business
Excel and Word.

Capital equipment
Two Desktops
Two Tables
Two Printers.

Staff training (if applicable)


…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….

Responsibility for technology management (if applicable)


…………………………………………………………………………………………………………….
…………………………………………………………………………………………………………….

Budgeting for technology


Renew tax software- Catsoft- each year.

Website (design, development, and ongoing maintenance, if applicable)


The business will be advertised in the White Page and Yellow Page.
A single page website will be set up.

Risk management
(up to 100 words)
Website content will be reviewed every 2 months to ensure information is up to date.
Data will be backed up daily.

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The Long-Term Practice Direction
Culture(up to 50 words)
Work hard during the tax season
Quickly respond to the client's question even outside of working hours
Add value to the client's financial situation by providing professional tax advice.

Branding and client communications(up to 50 words)


Will display CPA qualification in letters, business cards and window signs.

Rate of growth(up to 50 words)


100 new individual tax return clients each year
10 new business tax return clients each year
10 loan referrals each year
10 business insurance referrals each year

Differentiation(up to 100 words)


Deliver charismatic and patient communication with client
Offer lowest fixed price for doing tax return and BAS in Cabramatta

Responsibility for implementation(up to 50 words)


I will need to always remind myself be patient with the client's question even though there is no extra
charge for the time spent. I will explain in great detail the client’s taxation liabilities.
A montly review will be conducted to ensure the advertising timeframe is met.

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Appendix

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