Good-day everyone.
My client has just referred a business owner with a registered company to me. He need a loan from his bank and want me to do 1 year forecast of his business.
I am not currently their accountant and would like idea of how much to charge as fee for preparing the business forecast for him.
Your ideas are welcome and will be highly appreciated
Thank you.
Tyra
Replies (9)
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You give absolutely no information about the business in question.
Also, why aren't they asking their existing accountant to do this?
Figurewizard
Try Figurewizard. It's comprehensive, includes projected monthly bank balances and cash flows and operating and net cash flows including VAT and tax which it calculates from projected sales, overheads, investment etc. It's quick and easy to use and subscribing is twenty quid a year. As for what you should charge for this, I suggest whatever you think it's worth to the client.
How much time will it take?
If you answer that question you will have an idea of what you want to charge. You might consider a discount for it being an introductory service. However as said above, it's going to be difficult to do without understanding his business.
Is he after a hand hold session to pull some forecasts together or is he wanting you to prepare them entirely?
You'll also have to be careful of the disclaimer you provide with the document too.
Who knows?
It should only take a few minutes to come up with something useful enough to judge the business but you could spend hours coming up with something very specific but totally wrong.
Try the client with £100 per
Try the client with £100 per hour with a minimum total of £500 and see if he blenches
How much is he looking to borrow?
What size of loan are they after?
Obviously if the work is really only required because the 'bank' want it, the value to the client might be quite low, whereas if the financing required is larger, they may have a larger budget (and so you could spend some time helping them in the detail of planning finances.)
What do you think the probability of getting the loan is?
Offer them accounting services
If they haven't got an accountant offer to do the forecast as part of the deal if they appoint you.