Hillmark Credit forwards the request, and the funding partner reviewing it may set the amount, rate and term.
A production copier and six laptops with docking stations at two invented terms, a yearly software license spread over invented monthly paydowns, 2023 County Business Patterns figures for Yuma County, AZ accounting and consulting offices, and the records a partner may ask for.
At a glance
- Accounting, tax preparation, bookkeeping and payroll services, Yuma County, AZ
67 establishments (CBP 2023, NAICS 5412)
- With fewer than 5 employees
50, or 74.6% (CBP 2023)
- Paid employees
248 (CBP 2023)
- Annual payroll
$8.8 million (CBP 2023)
Accounting Firm Loans in San Luis, AZ: Office Equipment, Licenses and Staff Wages
An accounting, bookkeeping or payroll-service practice runs on people, computers and software. Hardware such as a production copier, laptops, docking stations and monitors is bought as a set and used for several years, so a term loan can match the payments to that life.
Software is billed differently. Many practice programs charge a yearly license up front, and a line of credit can spread that single payment across the months the license covers. The same line can carry a new staff accountant's first weeks of wages while the clients they serve are billed.
Management consulting and engineering offices carry the same kinds of costs, with design or project software in place of tax programs and large monitors or a wide scanner in place of a copier, so the same three products apply to them. A practice that hires before new client fees start may also look at a working capital loan with a fixed schedule.
Construction inside an office, new walls or wiring for a server closet are property work and stay outside this site.
A Production Copier and Six Laptops With Docking Stations at 36 or 48 Months: an Invented Practice
In an invented example, a bookkeeping and tax practice prices a production copier with a document feeder at $12,690 and six laptops with docking stations at $1,415 each. The invented set comes to $21,180, financed at an 11.62% annual rate.
| Term | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| 36 months | $699.64 | $25,187.04 | $4,007.04 |
| 48 months | $553.81 | $26,582.88 | $5,402.88 |
Over 48 invented months, each payment drops by $145.83 compared with 36, and the invented interest rises by $1,395.84. Laptops tend to be replaced sooner than a copier, which is why the invented practice leans toward the shorter term.
Toner, paper and the copier's service contract are running costs, so they stay out of the invented financed amount. A partner may also compare the invented loan with a copier lease from the dealer.
Accounting and Bookkeeping Offices in Yuma County, AZ: 67 Employer Establishments, 50 With Fewer Than Five Employees
County Business Patterns lists 67 employer establishments in Yuma County, AZ for 2023 under NAICS 5412, Accounting, Tax Preparation, Bookkeeping, and Payroll Services. Fifty (74.6%) kept a staff below five. Their combined 2023 payroll was $8.8 million, paid to 248 employees on the March count.
Two neighboring lines of professional work show a similar pattern. Management, Scientific, and Technical Consulting Services (NAICS 5416) had 44 employer establishments in the county, 37 (84.1%) of them with fewer than five employees.
Architectural, Engineering, and Related Services (NAICS 5413) had 49, and 29 of them (59.2%) were in the same under-five size class.
ZIP 85349 figures, including other professional services at addresses in the office's ZIP, are on the San Luis, AZ page.
A Yearly Practice-Software License Spread Over Ten Monthly Paydowns: an Invented Draw
In a second invented case, the practice renews its yearly tax and bookkeeping software license for $6,915, due in a single payment. Rather than pay it from the account, the invented practice draws it on a line of credit at a 14.46% annual rate, with 10 level monthly paydowns.
Each invented paydown is $738.15, for $7,381.50 in all and $466.50 of invented interest. The invented license runs twelve months, so the draw is cleared two months before the next renewal comes due.
In the invented case, the practice keeps its cash for payroll in the meantime. If the invented practice pays the draw down ahead of the invented schedule, the interest shrinks with it.
Paying the invented license from cash would avoid the interest, but it would take the invented $6,915 out of the account in one day. For a practice whose clients pay monthly, that single day can fall a week or two before the payroll it also has to meet, which is the timing a credit line draw is meant to smooth. A partner may ask how the practice has handled the same renewal in earlier years.
Client Billing Reports and the Equipment Quote: The File an Accounting Practice Can Gather
- Monthly client billing reports and accounts receivable aging
- Business bank statements that show client payments arriving
- The dealer quote for the copier or laptops
- The software renewal notice with its amount and due date
- The office lease and payments still running on earlier equipment
One partner may want the whole file, another only two or three items. A call can begin with the cost, its due date and when the matching client payments come in.
Real estate offices and child care centers share the front desks, classrooms, salon chairs and workout floors group on the industries page.
By Hillmark Credit ยท Updated
