Harborfield Business Capital arranges financing for accounting, tax preparation, bookkeeping and payroll firms in Waukesha, WI and Waukesha County, WI: term loans to buy a book of clients or another firm, and lines of credit to carry payroll ahead of filing deadlines. The county had 201 such firms with employees in 2023 (CBP). Funding partners set every term.
| Tax, bookkeeping and accounting offices | 201 employers with payroll in the CBP 2023 file |
|---|---|
| Employees | 1,821 (CBP 2023) |
| Under 5 employees | 66.2% (CBP 2023) |
| ZIP 53186 firms | 16 (ZBP 2023) |
| Nonemployer firms | 467 (NES 2024) |
| Structures to weigh | Term loans and revolving lines |
Where an Accounting Firm's Cash Goes
Accounting firms sell time. Payroll can be a large part of the cost, and a firm may add preparers and reviewers ahead of busier filing periods. Fees may arrive after the work: on extension, on completion, or on monthly retainers that lag behind the hours. A firm can be fully booked and still need cash to make payroll.
The second big money event is growth by acquisition. Owners who are slowing down sell their client lists, and buying a book of business is one way for a firm to add recurring revenue.
Accounting Firm Financing by Purpose
| Need | Structure |
|---|---|
| Buying a book of clients or another firm | Term loan |
| Payroll for added staff before deadline fees arrive | Line of credit |
| Software, servers and office fit-out for new staff | Equipment loan, or a term loan for the fit-out |
| A one-time gap, such as a large tax payment | Working capital |
Pricing a CPA Firm Purchase: What Drives the Number
There is no general answer, and Harborfield does not value practices. The price depends on the book's recurring fees, client retention after the sale, the mix of tax, audit, bookkeeping and advisory work, and how the deal is structured: cash at closing, payments tied to retention, seller financing, or a combination. Those terms are negotiated between buyer and seller.
What the financing side needs is the number the buyer must pay at closing and evidence that the acquired fees will cover the payment. Partners reviewing CPA firm financing typically ask for the seller's fee history by client category, the retention terms in the agreement and the buyer firm's own statements.
Staffing Ahead of a Deadline: An Example
Illustration only: a firm hires three seasonal preparers for twelve weeks at a combined $16,500 every two weeks, about $99,000 in total. Much of the related fee income is billed as returns are delivered and collected over the following weeks. A line drawn as payroll comes due and repaid as fees arrive may cost less than borrowing the full amount up front, because interest generally runs only on the drawn balance; compare the total dollar cost of each.
The Accounting Firm File Partners Read
- Bank statements showing fee collections over a full year
- Client concentration and recurring-revenue share
- For acquisitions: the purchase agreement, seller fee history and retention terms
- Returns and financial statements for the firm
- Existing debts, including any prior acquisition financing
Waukesha County, WI Accounting Offices in the 2023 Count
County Business Patterns counted 201 accounting, tax preparation, bookkeeping and payroll service establishments in Waukesha County, WI in 2023, with 1,821 employees and about $117.5 million in annual payroll. Two-thirds (66.2%, or 133 firms) had fewer than five employees. ZIP 53186 had 16 (ZBP 2023).
Nonemployer Statistics counted 467 firms in the same industry with no payroll in 2024. CBP and NES are different programs, so the two counts stay apart. For the wider county picture, see the Waukesha, WI figures page; related professional firms are on the industry overview.
