David Cupido from DC Accounting (centre) with country manager for Xero, Colin Timmis (left) and Palesa Moeletsi, FNB SME business development support manager
The driving force needed for David to follow his dream of opening his own business in 2008 was realising the lack of business and financial support within the local fishing community... He initially serviced micro-enterprises who needed VAT, payroll and AFS complication services. After years of limited clients and generating insufficient income, David was selected in 2023 to participate in The FNB Xero Programme.
This first of its kind development initiative sees FNB collaborate with accounting software specialist and Xero and Edge Growth to support and empower black-owned accounting practices by providing one-on-one mentorship, practice management skills, high-quality tools and the required resources.
At the time, David had no retainer clients and all services were being provided on an ad hoc basis. All processes were largely manual, with little to no marketing and no clear value proposition or pricing strategy. Through the FNB Xero programme with support and mentorship by small business development specialist Edge Growth, this was all about to change.
The first area of focus was to identify where opportunities lay to source new business, as well as to convert as many ad hoc clients as possible to retainer clients. A marketing and sales plan followed, along with a clear and structured value proposition to enable David to sell his business with confidence.
The results
David transitioned his practice to Xero, gaining crucial insights into the importance of digitising his operations and the potential this holds for scaling. All 31 of his clients are now also registered on Xero.
The business was rebranded, along with a new digital brochure, website, and signage.
The programme also sourced the expertise of an accounting specialist to assist in the development of a pricing strategy and clearly defined profit margins. David also underwent training to administer deceased estates, which now offers an additional revenue stream for the business.
By focusing on converting high potential existing ad hoc clients to retainer based clients, David’s goal of achieving an initial 10 retainer clients was achieved. The key focus for DC Accounting going forward is to continue to grow its retainer client base, and once the practice reaches 20 retainer clients, David will be in a position to employ an additional accountant.
“I realised during 2022 that I would need to transform my practice in order to stay relevant and become future-ready. I also knew that I would need help in order to bring this dream to fruition. When I saw the invitation from FNB to apply for participation in this programme, I knew this would be my ideal vehicle to take me on my journey,” says David.
He says the impact of the programme has resulted in a business that now has fixed recurring monthly cash flow which allows for improved planning and continuous growth going forward.
“This programme, together with the professional and world class assistance from its mentors, presenters, coaches and business advisers has undoubtedly contributed to realising the dream of migrating from a self-employment practice to a business that is steadfastly becoming a legacy”.
The 2024 FNB Xero Accounting Programme, spearheaded by FNB in partnership with Xero and Edge Growth, is calling on eligible small to medium accountancy firms to apply for their third cohort. Businesses need to be 51% or more black-owned, have an annual turnover of between R1 and R10 million and have been operating for over a year. The business should also have a team of three of more employees, be SARS compliant and be SAICA or SAIPA accredited.
A maximum of 15 entrepreneurs will be selected to participate in the programme, which commences in November 2024. Those interested can go to https://edgegrowth.incubatorportal.com/apply/fnbxero3 to register by Friday, 27 September 2024.
