How do I show a lender my bookkeeping practice’s recurring monthly fees?

Begin with a clean list of recurring clients. For each, show what the practice does, how the fee is set, when billing started and whether the fee has changed. Group the clients by size so the lender can see how concentrated the income is. If one client is a large share, say so plainly and explain the relationship.

Then back the list with records. Invoices, bank deposits and the financial statements should all agree with it. Where they do not, explain the difference, for instance a client who pays quarterly or a fee that changed mid-year. A lender is less concerned by an honest difference than by a surprise.

Describe how stable the work is. Do clients stay for many years? Are engagements written down? What happens when a client leaves? Show the turnover honestly, and explain how new clients arrive. A lender will also ask who holds the relationships, so be ready to speak about staff and any plan for the transition. Ask your accountant to review the package before it goes out, and ask your lawyer about any confidentiality owed to clients when you share their details. Keep a short note of how each fee is calculated, because lenders often ask whether it is by hour, by task or by flat arrangement.

Key takeaways

• Build a client schedule with fee, service, start date and payment record for each.
• Make the schedule agree with invoices, deposits and statements.
• Be open about client concentration, turnover and who holds the relationships.