Established Chelmsford Area Accountancy Practice for Sale – £294k Fees & £161k Profit

Established Chelmsford Area Accountancy Practice for Sale

Overview

An exceptional opportunity to acquire a long-established and highly profitable accountancy practice in the Chelmsford area of Essex. Established for over 30 years, the firm has developed a strong reputation within its local market, servicing approximately c250 clients across a broad range of sectors, predominantly within the service industry.

The practice generates recurring annual fees of approximately c£294,000 and delivers adjusted profits of around £161,000. The business benefits from an experienced team, modern systems, excellent client retention and secure owner-controlled premises.

This opportunity would suit an existing firm looking to expand in Essex and the South East, or an ambitious practitioner seeking a well-established, profitable practice with significant growth potential. The vendor is looking to deal with experienced buyers only.

Key Highlights

  • Location: Chelmsford Area, Essex
  • Established: 30 + Years
  • Annual Fee Income: c. £300,000
  • Adjusted Profit: c. £161,000
  • Recurring Revenue: 99%
  • Client Numbers: c. 250
  • Average Client Fee: c. £1,140
  • Largest Client Fee: c. £9,900
  • Work in Progress: c. £30,000
  • Debtors: c. £25,000
  • Experienced Team in Place
  • Owned Business Premises (the vendor would like the purchaser to remain for c 12 months to assist with client integration)
  • Cloud and Digital Working Environment

Client Base

The practice acts for approximately c250 clients, primarily located within a 15-mile radius of the office. The client portfolio consists mainly of service-sector businesses, alongside a small number of manufacturing clients.

The firm has successfully embraced digital working practices, with the majority of records received electronically. This has enabled efficient service delivery whilst maintaining strong client relationships.

The client base benefits from:

  • Long-established relationships
  • Strong recurring compliance income
  • Diverse SME portfolio
  • Excellent local reputation
  • Minimal client concentration risk

Specialist Expertise

The practice has developed recognised expertise in several niche areas, including:

  • Trusts and estates
  • Travel agents and ATOL reporting
  • Owner-managed businesses
  • SME compliance and advisory services

These specialist capabilities provide opportunities for continued growth and cross-selling under new ownership.

Financial Information

Fee Income Breakdown

Service

Annual Fees

Accounts Production

£172,548

Bookkeeping & VAT

£41,780

Tax Compliance

£36,320

Payroll Services

£18,277

Software Reseller Income

£9,660

Statutory Services

£3,709

ATOL Work

£3,690

Additional Financial Information

  • Recurring Fees: 99%
  • Non-Recurring Fees: 1%
  • Average WIP: £30,000
  • Average Debtors: £25,000
  • Partner Charge-Out Rate: £195 per hour

The practice generates highly predictable recurring revenues and strong cash generation.

Operations & Systems

The firm operates using established practice management and accounting software, including:

Core Systems

  • Absolute Accounting (Accounts & Tax)
  • PracticeNet CRM
  • Rapport Client Database
  • Panache WIP & Staff Management

Client Systems Supported

  • Xero
  • QuickBooks
  • Moneysoft Payroll

The practice is highly systemised and benefits from efficient operational processes.

Staffing

A capable and experienced team supports the day-to-day running of the business.

Full-Time Team

  • Senior Accountant (AAT qualified and part-qualified ACCA)
  • Junior Accountant (currently studying AAT)

Part-Time Team

  • Senior Accountant (CIMA qualified)

The team provides continuity for clients and offers a smooth transition opportunity for an acquirer.

Premises

The business operates from attractive premises in the Chelmsford area which are owned by the vendor through a separate property holding company.

Key benefits include:

  • Established trading location
  • Open-plan office environment
  • Capacity for additional staff
  • Modern heating and cooling systems
  • Opportunity to acquire a long leasehold interest (approximately 980 years remaining)

The vendor wishes the buyer to continue trading from the premises during the transition period and is open to discussions regarding the property’s future ownership.

Ideal Acquisition Opportunity

This practice would particularly suit:

  • Existing Essex accountancy firms seeking growth by acquisition
  • Regional firms expanding their South East footprint
  • Buyers looking for strong profitability and recurring revenues
  • Firms wishing to acquire an experienced team and established office infrastructure

Additional Information

  • VAT Registered
  • Professional Indemnity Insurance in place
  • Most recent regulatory reviews completed without issues
  • One minor PI claim currently being settled (£2,500)
  • No reliance on introducers or referral networks
  • Sale structured as a share sale, including the trading company and adjusted net assets
  • Vendor seeking an experienced purchaser committed to maintaining the office presence and client service continuity

For more information, please call 0203 811 8543 and quote reference number 220029.