Owning Your Own Accounting Firm

Want to start your own accounting firm? Your career as an accountant can also pave your way for financial freedom when you own your own accounting firm. Find out what it takes to make this dream come true – the good and the bad points – and assess for yourself if this the right path for you.

If you have the ambition and the drive to start your own accounting firm, you should know that there are several options that are available for you to do so. Typically, most businesses require the services of accounting firms because they fall in the ‘small business’ category. As such these organizations do not have the wherewithal to employ a full-time accountant. Such firms are going to be your most desired clients – because they provide you with a steady and long term client-customer relationship. Entrepreneurial accounting can benefit both sides of the table – for the entrepreneur and for the accountant.

Owning your own accounting firm may sound like a dream come true for many accountants. However, the path to becoming your own boss is not as easy as that. Certainly, there are benefits to running your own firm. But there are also some concerns which you should take into consideration before jumping right in.

Typically, any new business takes some time to get established and start churning out profits. Depending on the kind of business and clients you get, this may take anywhere between 2 to 3 years. So, you should be financially prepared to stick it out during this time. You need to have the necessary financial backing in order to do so.

You can also consider buying an established practice of a retiring CPA. This means you already have an established business and clientele, which ensures a certain amount of income right from the start. Another alternative is to find a partner who can share costs with you. However, if none of these options sit well with you, starting from scratch is always an available option.

The next thing to consider is developing a proper business plan – just as you would for any other business that comes to you for consulting. You need to know your business goals, decide your fee structure, identify your market and strategize about how you are going to market yourself to your future clients.

After you have worked out and charted out the future path for your firm, you need to consider office space. You can consider working from home, or renting office space in a commercial building or even sharing an office with someone. You will need to consider the local laws and permits for starting your own home office. Commercial or shared office spaces will be rented or leased – so that means paying out a fixed sum every month.

If you are starting an office, you will need office furniture and supplies. Also, you need to consider if you are going to hire any other employees – like a secretary, for example – and factor in their salaries and insurance costs into your budget.

Thus, if you consider your budget, legal aspects and insurance requirements, you are looking at a certain amount of start-up costs, before you actually begin to earn something.

Although it sounds like a rough road at first, if you stick it out, owning your own accounting firm is the best way to create a niche and a name for yourself as an individual in the market. You also gain more freedom and versatility: for example, you can choose the kind of work that you want to specially deal in, or choose your own hours.