WD BOOKKEEPING AND ACCOUNTANCY SERVICES LTD

Executive Summary

WD Bookkeeping and Accountancy Services Ltd holds a focused niche in bookkeeping and accounting for small businesses, supported by strong founder control and regulatory compliance. However, recent financial strains highlight pressing liquidity and solvency challenges that must be addressed to stabilize the business. Strategic growth through service diversification, technology adoption, and network partnerships can unlock expansion potential, provided operational risks and resource limitations are managed carefully.

WD BOOKKEEPING AND ACCOUNTANCY SERVICES LTD - Analysis Report

Company Number: SC678425

Analysis Date: 2025-07-29 20:31 UTC

1. Executive Summary
   WD Bookkeeping and Accountancy Services Ltd operates as a micro-entity within the highly fragmented bookkeeping and accounting services sector in Scotland. While the company benefits from a focused niche and low overhead structure, recent financials reflect working capital pressures and negative equity, signaling operational challenges that require strategic attention to stabilize financial health and support growth ambitions.

2. Strategic Assets

• Niche Focus and Expertise: The company is specialized in bookkeeping and accounting activities (SIC 69202, 69201), allowing it to serve small businesses or sole traders who require tailored financial record-keeping and compliance support.
• Low Fixed Asset Base: With minimal fixed assets (~£1,000), the business maintains operational flexibility and low capital intensity, which is typical and appropriate for service businesses in this sector.
• Direct Control and Leadership: The founder, Mr. Wojciech Dobkiewicz, holds significant ownership (50-75%) and directorship, ensuring clear decision-making and alignment of strategic goals.
• Regulatory Compliance: The company is active and up to date with filings, indicating good governance practices that support credibility with clients and regulators.

3. Growth Opportunities

• Expanding Client Base: Leveraging the founder’s expertise and existing reputation to target additional small businesses in the local region could increase revenue without substantial fixed costs.
• Value-Added Services: Introducing complementary advisory services such as tax planning, payroll, or financial consultancy could diversify revenue streams and deepen client relationships.
• Technology Adoption: Investing in cloud accounting software platforms or automation tools could improve service efficiency, reduce manual errors, and enhance scalability.
• Partnerships and Referrals: Building alliances with local business networks, accountants, or financial advisors could increase lead generation and client acquisition cost-effectively.

4. Strategic Risks

• Financial Stability Concerns: The latest financials show negative shareholders' funds (-£1,118) and current liabilities exceeding current assets (£5,030 vs £2,533), indicating liquidity and solvency risks that could impair operational continuity and client confidence.
• Single Director Dependency: The company relies heavily on one individual for leadership, posing succession and capacity risks, especially if demand grows or unforeseen events occur.
• Market Competition: The bookkeeping market is highly competitive with many small operators and software alternatives (e.g., QuickBooks, Xero), which could pressure fees and margins.
• Scale and Resource Constraints: As a micro-entity with only one employee, scaling operations quickly may be challenging without additional hires or outsourcing, potentially limiting service capacity.