At the moment, there are more than 40,000 accounting firms scattered throughout the U.S. From large firms that lend a hand to major corporations to small operations that work closely with individuals, there is no shortage of accounting firms in the country today.
But there is always room for one more. If you have a strong accounting background and sense a need for a new firm in your area, consider learning how to start an accounting firm from the ground up.
It can take some time to get an accounting firm up and running. It can also take even more time than that to transform it into a successful business that brings in a lot of money every year.
But if you’re passionate about accounting, you can (and should!) start an accounting firm in your city or town. Check out the essential steps you’ll need to take to bring your firm to life below.
Start by Taking a Look at the Accounting Firms Operating in Your Area
Before you begin trying to start an accounting firm, you should take a few weeks to scout the firms that will be your competition in the coming years. Do your market research and find out everything you can about other firms in the area.
It doesn’t matter if you’re opening an accounting firm in a large city like Los Angeles or in a small town in the middle of nowhere. Knowing what you’re going to be up against is important.
Figure Out What Will Make Your Accounting Firm Unique
Once you’ve taken the time to research the other accounting firms in your city, sit down and think about what’s going to set your firm apart from all the rest.
Are you going to cater primarily to very large businesses? Very small businesses? Entrepreneurs?
One way to create some separation between your firm and other firms is by catering to one specific crowd. This might limit your opportunities in other areas. But it’ll solidify your firm as the firm for one particular type of business.
Come Up With a Name for Your Accounting Firm
What is the name of your accounting firm going to be?
In the grand scheme of things, this might not seem like a detail that you’ll need to hash out when you’re first attempting to start an accounting firm. But your firm isn’t going to feel real to you until it has a name.
Generally speaking, most accounting firms don’t go too crazy when it’s time to create a name for themselves. You should probably try to stick with something simple that indicates what your company does.
You might want to use your last name, your city or town, or even an accounting term to generate a name for your firm. You’ll begin to feel a change in the way you approach building your firm after you have a name in place for it.
Create a Business Plan for Your Accounting Firm
Regardless of whether you’re going to start an accounting firm, a restaurant, a retail store, or some other kind of business, you need to create a business plan prior to doing it.
A good business plan should include things like:
- Executive summary
- Company description
- Market analysis
- Marketing plan
From start to finish, your business plan should spell out exactly what your accounting firm is going to be about. It’ll help you stay on track as you move forward with your firm.
A business plan will also be necessary for those companies that plan on either obtaining a business loan or convincing investors to purchase a stake in their business. It’s why you should take as long as you need to perfect your business plan.
Find a Great Location for Your Accounting Firm to Set Up Shop
It’s obviously not going to be possible to start an accounting firm if you don’t have someplace to put it. After you have your business plan finished and you have the funding you need to kickstart your operation, you can begin looking for an office to work out of.
You don’t need an office that’s too large. But you want to get something that you can grow into over time, assuming your accounting firm takes off.
You also want something that’s situated in a place that’s easy for people to get to. You might be able to leapfrog over your competition simply by choosing a location that’s more convenient than theirs.
When you get to this point in the process, you might be so excited to get things going that you settle for a location you know you shouldn’t. Don’t do this as it could get your accounting firm off to a bad start.
Obtain Furniture and Equipment to Carry Out Your Accounting Firm’s Services
Once you’ve located a great office for your accounting firm, you’ll be so close to opening your firm up for business. There will be just a few final touches that you have to tend to before opening your front doors.
One of the main things you’ll have to do is fill your new office space with all the furniture that you’ll need to get work done. From desks and chairs to conference room tables and everything you’ll need to create a waiting room, your office is going to fill up fast with furniture.
After you have it all in place, you can add the equipment that you’ll use to perform your accounting services day in and day out. This equipment should include phones, computers loaded with accounting software, calculators, projectors, and more.
Hire People to Work for Your Accounting Firm
If your accounting firm is going to be a very, very, very small operation, you might be the only person that works in it. But if you’re going to have more than a couple of clients, you’re not going to be able to do it all alone.
Hire a few people to work with you. Consider bringing a few other accountants on board as well as a receptionist. That should be enough employees to start.
Market Your Accounting Firm’s Services to Those in Your Community
Your accounting firm has an office space. It also has all the necessary furniture and equipment, and there are employees ready to begin working.
You’re finally done with the process of building your firm! Or are you?
The truth is that you can do all of this and still not feel like your accounting firm is official. You’ll need to welcome at least a few clients through your front door to make it feel like you’re running a legit operation.
To attract clients, you’ll need to market your accounting services to those in your community. You can do this in a variety of ways.
You can:
- Set up social media pages for your accounting firm and connect with local businesses on it
- Attend small business gatherings in your city or town and market your firm to other businesses in person
- Cold call businesses throughout the area and tell them that you’re available to assist them with their accounting needs
You can also enroll in an Accountants Marketing course to learn other effective marketing techniques that you can put to good use.
Hold Your Accounting Firm to the Highest Standards Possible
As long as you’re able to market your accounting firm to the masses, it shouldn’t take too long for the clients to start coming in. Within about six months, you should have a steady number of clients calling on you for accounting services.
Reward them by providing them with the best accounting services you can. Do whatever it takes to anticipate your clients’ accounting needs and tend to them so that they know you value their business.
Additionally, speak with your employees early and often about keeping ethics in mind at all times while on the clock. You want your employees to be honest people who can be counted on to keep your clients’ financial information confidential.
Build up your reputation in your community and demonstrate to people that your firm can be trusted. It’ll go a long way towards establishing your firm as one of the best in the business in your area.
Start an Accounting Firm From Scratch by Following These Steps
As you can see, starting an accounting firm from scratch is going to be a tall task. There are so many steps that you’ll need to climb before you can start carrying out accounting services.
Don’t use that as an excuse to skip any of the steps mentioned here. You’re going to struggle to start an accounting firm if you don’t work your way through the process.
You’re also going to make it hard for your firm to stay afloat for very long. By sticking to these steps, you’ll lay down a solid foundation for your firm and put it in a position to grow.
Would you like to learn more about starting a new business? Take a look at the informative articles on our blog.
