Business model Accounting practices
If you have kicked around the idea of hanging out your shingle long enough and it’s time to get serious, then we can help. Every month, we work with many new and developing CPA firms helping them with the process. To avoid many of the pitfalls, here are some things that you should be asking yourself and pulling together before you start an accounting firm.
Before you hand in your resignation, here are some questions to ask yourself:
- Do you have the experience to process the accounting needs of small businesses and individuals on your own?
- Do you have the drive and motivation to succeed on your own?
- Do you have support from your spouse and family?
- Do you have the capital to get started and operate the accounting firm for one year?
Owning your own CPA firm business can be very rewarding. The process requires planning, hard work, perseverance, and investment. If you can weather the start-up and early development phase, the transition can be wonderful.
Most Accountants and CPAs start an accounting practice using a combination of:
- Starting from scratch – Starting an accounting firm from ground zero allows you to begin without any legacy issues like old pricing, old software, and past-client service issues. To effectively market your services and price properly, you should enroll in a practice marketing and development program to learn marketing, pricing, selling and practice management.
- Part-time practices - Many accountants start picking up clients on the side as a part-time practice. This lowers their risk and enables them to assess whether they might enjoy starting a full-time accounting practice.
- Finding a partner – Some CPAs start off with an accounting peer. This can help expand the services of the firm so you can cast a wider net. This generally requires chemistry and compromise. While the start-up expenses are shared, so are the revenues.