How to Build an Accounting Practice

Starting an Accounting Practice

1. Create a business plan. While you are in school or employed by an accounting firm, develop a financial, management and marketing plan for your business. Make sure you include at least 5 years of financial and other support, so that you will have time to grow your business.

   1. At this point, you should decide if you want to take on partners. If so, you will need to enter into a partnership and register it with your state. You should also do research about competition, pricing and services. If you have experience in a niche market, research where and how you can take advantage of this competitive edge.

2. Choose a name. Accounting firms should have simple names that identify their name and the services they provide, so that a potential client can easily find them.

3. Register your name with your Secretary of State, County Clerk or other appropriate authority by filling out and submitting a "Doing Business As" (DBA) application or similar. Submit other business licenses as required by your state or country.

4. Create a website. Few businesses can survive in today's business world without a website. Make sure you have a professional look, contact information, a description of services and a scheduling program so that new clients can find you using a search engine and contact you.

5. Order stationery and business cards. Place your website, email, telephone number, address and title on a simple business card so that you can market yourself to people in the community.

6. Choose a type of accounting software. It is a good idea to choose a software, like Quickbooks, that is commonly used, so that you can help clients to use this software for more complicated bookkeeping. Train thoroughly on this software.

7. Take on your first clients. Begin by approaching friends or family members about doing their individual or business taxes for a reduced rate. Then, ask them to refer you to other clients. In order to afford to build your accounting practice infrastructure, you will need a base of clients.

   1. Many accountants start their own business as a part-time endeavor. If you work at a large niche accounting firm, you may be able to take certain accounting projects on after work. You will need to prepare yourself for the possibility that you will only have part-time employment for at least a year. It is reported that home-based accountants work approximately 10 hours less per week than accountants employed at firms.

8. Consider starting work from home while you have a small client base. The American Institute of CPAs reports that home-based accounting practices have a higher success rate than other home based businesses. Building a client base can take a few years, so wait until your client base is on the rise to choose a brick and mortar location.