Remote Bookkeeping Firm
Remote Bookkeeping Services Firm: Deal Review
Asking Price: $289,000
Annual Revenue: $300,000
Annual Profit (SDE): $125,000
Monetization: Monthly Retainers (Service-Based)
Business Type: Virtual Bookkeeping & Financial Services
Executive Overview
This deal review focuses on a remote bookkeeping firm listed for sale (on market listing). With an asking price of $289,000 and seller discretionary earnings (SDE) of approximately $125,000, the business represents a lower mid-market service offering built on consistent, recurring client revenue. The seller indicates that the business supports 50+ small business clients across the U.S., handling monthly bookkeeping, QuickBooks reconciliation, financial reporting, and light advisory work. It is presented as a solo-operator-friendly firm with subcontractor support, built for remote continuity, and primed for bolt-on acquisition or solo practitioner expansion.
The current asking multiple comes in at 2.31x earnings, which reflects a fair pricing tier in this vertical. Bookkeeping firms usually trade between 2x and 3x depending on client quality, systems, and dependency on owner involvement.
This deal, while modest in scale, has the bones of a dependable, cash-flowing professional service platform. It is paper-light, low overhead, and comes with a built-in client base in need of monthly services—making it a high-stability acquisition candidate with room to grow.
Deal Structure & Terms
Transaction Type: Asset Sale
Asking Price: $289,000
Annual Revenue: $300,000
Annual SDE (Profit): $125,000
Profit Margin: 41.6%
Clients: 50+ SMB clients
Training/Transition: 60 days (up to 20 hours)
Included Assets: Client list, SOPs, software subscriptions, branding, domain
Payment Terms: Seller prefers full cash, but open to 20% seller financing over 6 months
Employees/Subcontractors: 3 part-time contractors handling data entry and categorization
Owner Time Commitment: 10–15 hours/week
Service Breakdown
The firm provides recurring monthly bookkeeping services to small businesses, primarily sole proprietors, LLCs, and S-corps in the professional services space.
Core offerings include:
Monthly bookkeeping
Bank & credit card reconciliation
Payroll journal entries (non-payroll processing)
Financial reporting packages (P&L, Balance Sheet, Cash Flow)
1099 tracking & W-9 management
Light advisory (budgeting, cash flow projections)
Clients are billed via monthly retainers, ranging from $300 to $900/month depending on transaction volume and service level. The average revenue per client is ~$6,000/year.
All clients are on QuickBooks Online, and 95% use QuickBooks-integrated payment processors. Client communication occurs via email, Zoom, and Loom updates, with no in-person or phone meetings required.
Financial Profile
The business reports a 41.6% net profit margin, which is above industry average and suggests operational efficiency.
Breakdown of expenses:
Contractor payments: $80,000/year
Software: $3,500/year (QuickBooks subscriptions, Dext, Gusto for internal payroll)
Marketing: <$2,000/year
Admin: <$1,000/year
The seller tracks all billing in QuickBooks and has tax returns to substantiate earnings. Bank statements and client contract summaries were provided for vetting.
Churn rate: 8% annually (mostly due to client business closures, not dissatisfaction)
Client tenure: Average 2.5 years
AR aging: 100% of clients pay automatically via ACH or credit card, no receivables over 30 days
Client industries: 35% marketing agencies, 25% legal/consulting, 15% real estate professionals, remainder mixed
Operational Details
The seller operates the business from home, working ~12 hours per week. Their primary responsibilities include:
Onboarding new clients
Monthly review of contractor-completed books
Final financial report preparation
Client-facing emails and review meetings
Three part-time contractors are used, each paid on a per-client basis. The contractors perform bank feed categorization, document collection, and preliminary reconciliation.
Tech Stack:
QuickBooks Online (primary)
Dext for document management
ClickUp for task tracking
Loom for asynchronous client updates
Slack for internal communication
Calendly for scheduling
All processes are documented with SOPs stored in Google Drive. A transition plan is in place with suggested roles for each task and examples of report templates, standard emails, and issue resolution paths.
Transition Support
The seller offers 60 days of post-sale support, including up to 20 hours of 1-on-1 transition coaching. This includes:
Walkthrough of all systems
Introductory scripts for clients
Handoff emails for clients to receive new owner
Coaching on closing books and preparing reports
Contractor management introduction
Seller has agreed to assist in retention of the three contractors but cannot guarantee their continued service beyond 60 days. However, the seller notes these contractors have worked reliably for over a year and prefer remote work.
No licenses or certifications are required to operate the business, though familiarity with QuickBooks and basic accounting practices is essential.
Growth Potential
While the business is cash-flow positive and predictable, it has seen limited growth due to seller bandwidth and lifestyle goals. Several expansion paths exist for the right buyer:
1. Niche Specialization:
The client base is generalist. Creating a brand around one vertical (e.g., marketing agencies or solo attorneys) would allow for premium pricing and stronger referrals.
2. Paid Lead Gen:
The business has grown almost exclusively via word of mouth and Upwork. Creating a paid funnel via Google Ads targeting "bookkeeper for solo law firm" or similar keywords could unlock lead flow at sub-$100 CAC.
3. Strategic Referrals:
Partnerships with CPAs and tax preparers who do not offer bookkeeping is a low-hanging fruit. These firms often refer clients but don’t offer monthly services themselves.
4. Pricing Optimization:
Current pricing is at market-average levels. Given the clean books and white-glove reporting, raising rates 15% across the board could increase net profit by ~$20,000 with no additional workload.
5. Upsell Paths:
Clients could be offered quarterly cash flow analysis, budgeting templates, and quarterly Zoom strategy calls for an additional $100–$250/month, increasing LTV significantly.
Risks and Considerations
This acquisition carries several risks that must be accounted for:
1. Key Person Dependency:
While processes are documented, clients are used to the seller’s personal style and communication rhythm. Any buyer must handle the transition delicately and avoid immediate workflow changes.
2. Contractor Continuity:
Though the three contractors are competent, they are not locked in. A buyer should consider formalizing agreements or having backup labor plans.
3. Regulatory Risk:
Even though bookkeeping is an unlicensed field in most states, providing budget or advisory services could trigger “accounting practice” thresholds. A buyer should confirm compliance.
4. Software Fragmentation:
While the tech stack is lean, onboarding new clients using different platforms (e.g., Xero or Wave) could complicate operations. The business is optimized around QuickBooks.
5. Scaling Limits:
Without building a true agency model or hiring a full-time ops manager, the owner cannot serve significantly more clients without working more than 25 hours/week. Scaling will require process automation or additional labor investment.
Buyer Fit
Ideal buyers include:
A CPA or EA looking to expand into recurring monthly revenue
A freelance bookkeeper tired of starting from scratch
An operations-savvy entrepreneur who wants a side cash-flow business
A fractional CFO firm seeking a low-end feeder service
A QuickBooks ProAdvisor who wants to move from project-based to retainer billing
Not ideal for: Passive investors, hands-off operators, or buyers unfamiliar with accounting basics.
Deal Structuring Options
While the seller prefers an all-cash deal, they have indicated openness to flexible structuring:
Seller Financing: 20% of the $289K price ($57,800) could be paid over 6 months with interest
Holdback Clause: Buyer may request a 10% holdback for 90 days tied to client retention
Earnout: $250K upfront, $39K conditional upon retention of 90% of client revenue after 6 months
These alternate terms mitigate downside risk if clients churn post-sale, while still offering a clean exit for the seller.
Conclusion
This remote bookkeeping firm offers a consistent, high-margin service business with a solid client base, recurring revenue, and straightforward operations. The documentation, contractor support, and client stability make it a low-risk entry point into professional services. For a buyer with a background in accounting, systems, or client services, the business presents an opportunity for expansion, operational tightening, and gradual scaling.
Acquisition Rating:
Financial Stability: 8.5/10
Documentation: 9/10
Client Quality: 8/10
Scalability: 6.5/10
Transition Risk: 7.5/10
Deal Flexibility: 7/10
This is a strong foundational asset for any buyer who wants to build or absorb a professional service arm.
