A firm's request goes from Deerbrook Lenders to a funding partner, which makes the call.
Four invented cases for accounting offices and related firms: fireproof files, a shredder and desk phones on a 36-month term loan, a recruiter's placement fee compared on a term loan and a credit line, client travel drawn on a line until the final invoice is paid, and a ground-penetrating radar cart on equipment financing.
At a glance
- Accounting, tax preparation, bookkeeping, and payroll services (NAICS 5412), Jackson County, MS
41 employer establishments (CBP 2023)
- Of those, establishments with fewer than five employees
31, or 75.6% (CBP 2023)
- Management, scientific, and technical consulting services (NAICS 5416)
30 employer establishments (CBP 2023)
- Architectural, engineering, and related services (NAICS 5413)
35 employer establishments (CBP 2023)
Fireproof file cabinets, a shredder and desk phones for a Pascagoula, MS accounting practice: a term loan
An invented office refresh at an accounting practice in Pascagoula, MS: 4 fireproof file cabinets at $1,385 each for client records, a high-capacity shredder at $2,190 and 9 desk phones at $245 each, an invented $9,935.
Carried on a term loan for 36 months at 11.8% a year, the invented refresh costs $329.04 a month. Over three years the invented schedule comes to $11,845.44, $1,910.44 of it interest.
A practice could also ask for equipment financing on cabinets and a shredder, since both carry vendor invoices. A funding partner may prefer a term loan when part of the cost, like the phone setup, holds little resale value; it decides on any offer and term.
A recruiter's placement fee for a staff accountant: term loan or credit line for a Jackson County, MS CPA firm
In a second invented case, a Jackson County, MS CPA firm hires a staff accountant through a recruiter that charges 18% of a $62,000 first-year salary, an invented fee of $11,160, due when the hire starts.
| Product | Annual rate | Payments | First payment | Interest |
|---|---|---|---|---|
| Term loan, 12 months | 13.5% | 12 of $999.40 | $999.40 | $832.80 |
| Credit line, $1,860 of principal a month | 15.15% | 6, falling | $2,000.90 | $493.14 |
In this invented comparison the credit line draw costs $339.66 less in interest than the term loan, because it is cleared in 6 months instead of 12; its first invented payment is $1,001.50 higher. The fee is paid once and earns back only as the new accountant bills hours, so the choice is between a lighter payment and a shorter debt. Which product the partner offers, if it offers one, is its call.
Client travel billed at the end of an engagement: a credit line for a Pascagoula, MS consulting firm
A consulting firm can carry travel costs for weeks before it bills them. In an invented engagement, a Pascagoula, MS consulting firm draws airfare, hotel and mileage on its credit line in three amounts: $2,310 on day 0, $2,060 on day 14 and $2,110 on day 28, an invented $6,480.
The final invoice goes out on day 28 and the client pays on day 68. At 14.85% a year, the three invented draws cost $63.91, $45.26 and $34.34 in simple daily interest, $143.51 together, and the line is cleared when the payment arrives.
Travel that repeats with each engagement is the kind of cost a revolving limit carries without a new request each time. A partner may ask for the engagement letter and recent bank statements before setting any limit.
Field equipment for a Jackson County, MS engineering office: equipment financing
Engineering firms are counted with this page. In an invented case, a Jackson County, MS engineering office adds a ground-penetrating radar cart for utility locating and site studies at $19,450.
On equipment financing for 48 months at 11.3% a year, the invented cart costs $505.53 a month, $24,265.44 across the term and $4,815.44 of interest. The cart carries a serial number, so a funding partner may hold it as collateral.
Small staffs and ZIP 39567 counts for Jackson County, MS accounting offices and two related trades
County Business Patterns 2023 counted 41 accounting, tax preparation, bookkeeping, and payroll services establishments with a payroll in Jackson County, MS (NAICS 5412). Three in four ran small: 31 of the 41, or 75.6%, had fewer than five employees, so a single new hire changes the payroll a great deal.
The same file listed 30 management, scientific, and technical consulting services establishments (NAICS 5416), 26 of them with a staff under five, and 35 architectural, engineering, and related services establishments (NAICS 5413), whose 379 employees drew $35.7 million of 2023 annual payroll.
ZIP 39567 had 8 accounting offices, 4 consulting offices and 5 engineering offices in the 2023 ZIP Code Business Patterns file, counted by street address.
Nonemployer Statistics 2024 found 136 accounting, tax preparation, bookkeeping, and payroll businesses with no paid employees in Jackson County, MS, a separate count. More county and ZIP 39567 figures are on the Pascagoula, MS page, and law offices, salons and gyms share this group on the industries page.
By Deerbrook Lenders · Updated
