How to Start an Accounting Firm in 2025: Step-by-Step Guide & Checklist

Researching Your Accounting Firm Idea

What Services Do Accounting Firms Offer? 

Starting an accounting firm opens the door to a wide range of services that help clients manage their finances, comply with regulations, and plan for the future. As a small accounting firm, you'll primarily focus on offering services tailored to small businesses, freelancers, and individuals. 

Here’s a high-level overview of the core services your accounting firm could provide:

#1. Bookkeeping Services

One of the most fundamental services offered by accounting firms is bookkeeping. This includes maintaining accurate financial records, managing day-to-day transactions, profit and loss management, and keeping track of receipts, invoices, and payments. Bookkeeping services are important for ensuring clients have a clear understanding of their cash flow and financial health.

#2. Tax Preparation and Planning

Handling taxes is a major concern for individuals and businesses alike. Accounting firms assist with tax preparation, ensuring that clients are compliant with local, state, and federal tax regulations. Additionally, tax planning services help clients minimize their tax liabilities and take advantage of any applicable deductions or credits.

#3. Financial Statement Preparation

Accounting firms prepare key financial documents such as balance sheets, income statements, and cash flow statements. These reports provide clients with a snapshot of their business's financial standing and are often required for securing loans, attracting investors, or making strategic decisions.

#4. Payroll Management

For small businesses, managing payroll can be time-consuming and complex. Accounting firms often offer payroll services that handle everything from calculating wages and taxes to ensuring compliance with employment laws. This service can save clients significant time and reduce the risk of costly payroll errors.

#5. Auditing Services

While audits are typically associated with large companies, small accounting firms may offer internal auditing services to help businesses evaluate their financial processes. This can uncover inefficiencies, errors, or potential compliance issues before they become major problems.

#6. Business Consulting and Advisory

Beyond traditional accounting, many firms offer business consulting services. This may include advising clients on financial planning, business growth strategies, and improving operational efficiency. Offering consulting services positions your firm as a trusted partner in helping clients succeed.

#7. Regulatory Compliance Support

Helping businesses stay compliant with various financial regulations is another important service. This could include ensuring clients meet IRS, GAAP, or IFRS standards, as well as industry-specific regulations. Compliance services are crucial for avoiding penalties and maintaining a business’s reputation.

#8. Cash Flow Management

Cash flow is the lifeblood of any business, and accounting firms play a key role in helping clients monitor and manage it. By analyzing financial statements and creating forecasts, your firm can help businesses maintain healthy cash flow, ensuring they have enough liquidity to cover expenses and invest in growth.

#9. Software Consulting

With the increasing importance of technology, accounting firms often provide guidance on choosing and implementing accounting software or other cloud-based solutions. This service helps clients streamline their financial processes and improve their overall efficiency.

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How High Is the Demand for Accounting Services?

The demand for accounting services in the U.S. continues to grow steadily, driven by the complexities of tax laws, business growth, and regulatory compliance needs. In 2023, the accounting industry employed about 1.5 million people in the U.S., including accountants, auditors, and bookkeepers. This number is projected to increase as accounting services evolve, incorporating more consulting, auditing, and advisory roles​.

The U.S. Bureau of Labor Statistics estimates a 6% growth in the accounting profession between 2023 and 2033, which is faster than the average for all occupations. This increase translates to roughly 91,400 new openings each year, fueled by growing business needs and an increasing number of retirements​

Notably, small businesses and startups increasingly rely on accounting firms to manage their finances, making this an ideal time to start an accounting firm.

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What Skills Do You Need to Start an Accounting Business?

Starting your own accounting firm requires more than just financial know-how. To run a successful business, you’ll need a blend of technical skills and business acumen to attract clients, deliver quality services, and navigate the complexities of the accounting industry. 

Here are five key skills you’ll need:

#1. Accounting and Financial Expertise

At the core of any accounting firm is a solid understanding of accounting principles, financial reporting, and tax regulations. This includes knowing how to prepare financial statements, manage books, perform audits, and navigate compliance issues such as tax codes and GAAP (Generally Accepted Accounting Principles). Without this foundation, it's impossible to deliver the high-quality services your clients will expect.

#2. Business Management

Running an accounting firm is essentially running a small business. You’ll need strong business management skills, including budgeting, resource allocation, and understanding cash flow. These skills will help you oversee your firm’s day-to-day operations and ensure long-term sustainability. You’ll also need to understand business entity formation structures (LLC, corporations, partnerships) to provide tailored advice to clients.

#3. Client Acquisition and Relationship Building

Attracting and retaining clients is key to your firm's success. This means developing strong networking and relationship-building skills, which allow you to grow your client base and maintain long-term relationships. You'll need to focus on customer service, communication, and understanding clients' unique financial needs to stand out in a competitive market.

#4. Technological Proficiency

With the rise of cloud-based accounting software like QuickBooks, Xero, and other automated solutions, being tech-savvy is crucial. You’ll need to be comfortable using accounting software and tools that automate bookkeeping, payroll, and tax filing to offer efficient services. In addition, staying current with financial technology trends will give you a competitive edge.

#5. Regulatory Compliance Knowledge

Keeping up with ever-changing tax laws, financial regulations, and compliance standards is key for any accounting firm. A deep knowledge of tax compliance, both on a state and federal level, as well as familiarity with financial regulations like GAAP or IFRS, will help you guide clients through the complexities of staying compliant and avoid costly penalties.

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What Training Do You Need to Start an Accounting Business?

Starting an accounting firm requires more than just a knack for numbers. For some specialist accounting services, formal education and professional certifications are mandatory, while for others industry recognized certifications can significantly enhance credibility and client trust. 

Here's an overview of the training and qualifications that will help you establish a successful accounting business:

#1. Bachelor’s Degree in Accounting or Finance

Most accountants begin with a bachelor's degree in accounting, finance, or a related field. This foundational education provides core knowledge in financial reporting, auditing, taxation, and management accounting. A degree from a recognized institution is often the first step in your journey to becoming a trusted accounting professional.

#2. Certified Public Accountant (CPA) License

The CPA certification is one of the most prestigious qualifications for accountants. While it’s not required to start a bookkeeping or basic accounting business, becoming a CPA greatly expands your scope of services, allowing you to file reports with the Securities and Exchange Commission (SEC), represent clients in IRS audits, and offer tax planning and advisory services. CPA licensing typically involves passing a rigorous exam and meeting state-specific educational and experience requirements.

#3. Additional Certifications

If you want to specialize in certain areas of accounting, additional certifications can give you a competitive edge. For example, becoming a Certified Management Accountant (CMA) or a Certified Internal Auditor (CIA) can open doors to higher-paying clients and more complex advisory roles. Specialized training in tax laws, auditing, or financial forensics can also help you diversify your service offerings.

#4. Continuing Professional Education (CPE)

Accounting professionals must stay current with tax laws, financial regulations, and industry best practices. Many accounting certifications, including CPA, require ongoing Continuing Professional Education (CPE) credits to maintain certification. This training is typically available through professional associations, universities, and accredited online platforms.

Recommended Online Courses for Accounting and Bookkeeping:

Online courses and accreditations from recognized institutions are a flexible and accessible way to advance your skills. Here are a few highly regarded programs:

• Harvard Business School Online Financial Accounting Program: A shorter, intensive program that covers key concepts in financial accounting. It’s ideal for accountants who want to sharpen their skills or business owners looking to gain a deeper understanding of accounting principles.
• AICPA Online Training Programs: The American Institute of CPAs (AICPA) offers a variety of online programs for CPA exam preparation and ongoing professional development. Their courses cover everything from tax planning to advanced financial reporting.

How Much Does it Cost to Start an Accounting Business?

The costs of starting an accounting firm can vary depending on the size of the business, the services offered, and the location. Whether you're launching a small home-based firm or a full-service accounting company, it's important to factor in the various expenses required to get started. Here’s an overview of the key costs:

#1. Business Registration Process and Licensing: $100 to $500USD annually

To legally operate your accounting firm, you’ll need to register your business with local or state authorities. The cost of registration varies depending on your business structure (LLC, sole proprietorship, corporation) and the specific state you operate in. Additionally, certain states may require a CPA license if you plan to offer certain services, which can involve application and exam fees.

#2. Office Space: costs vary

If you’re running your firm from home, you can minimize costs significantly. However, if you’re looking to lease office space, expect to pay anywhere from $500 to $3,000 per month, depending on your location and the size of your office. For those just starting out, coworking spaces can be a cost-effective option, with fees typically ranging from $150 to $400 per month.

#3. Accounting Software and Technology: $300 to $1,500USD annually

You’ll need reliable accounting software to manage your clients' finances. Popular platforms like QuickBooks, Xero, or FreshBooks range from $20 to $60 per month, depending on the features you need. In addition to software, you’ll need a quality computer, printer, and secure cloud storage solutions, which could set you back between $1,000 and $1,500.

#4. Marketing and Branding: $100 to $600USD annually

Building your brand and attracting clients requires investment in marketing. This can include the costs of creating a professional website, business cards, online advertising, and networking events. 

#5. Professional Liability Insurance: $500 to $1,000USD annually

Protecting your business with insurance is essential. Professional liability insurance (also known as Errors & Omissions insurance) is crucial for accountants, as it covers any mistakes or oversights that might occur in your client work. The cost will vary depending on the size of your firm, but expect to pay between $500 and $1,000 annually for basic coverage.

#6. Continuing Education and Certification Fees: $1,000 to $3,000USD annually

If you’re pursuing a CPA certification or other specialized training, there will be costs associated with courses, exams, and ongoing education. CPAs are required to earn Continuing Professional Education (CPE) credits to maintain their certification, which may cost up to $1,000 or more annually, depending on the courses you choose.

#7. Miscellaneous Expenses: $500 to $2,000USD annually

There are additional expenses to consider, such as office supplies, furniture, professional association memberships (like the AICPA), and software updates. These smaller costs can add up over time, so it’s important to budget for them as well.

Estimated Total Startup Costs:

• Low End: $2,500–$5,000 (home-based business)
• Mid Range: $5,000–$15,000 (small office or coworking space)
• High End: $20,000–$50,000 (full-service accounting firm with employees and leased office space)

By understanding these costs and planning accordingly, you can set realistic financial expectations as you start your accounting business. Careful budgeting will help ensure you have the resources to grow and scale your firm over time.

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On a Budget? How to Start an Accounting Business With No Money

Starting an accounting business with limited or no funds is possible with some strategic planning and resourcefulness. Here are a few tips to help you launch your firm on a shoestring budget:

Tip #1. Start as a Home-Based Business

One of the biggest expenses for new businesses is office space. By operating your accounting business from home, you can save thousands of dollars in rent and utilities. All you need is a quiet, dedicated workspace, a reliable computer, and accounting software. Many successful firms started this way and gradually moved to a physical office as the business grew.

Tip #2. Use Free or Low-Cost Accounting Software

Instead of investing in expensive software upfront, take advantage of free or budget-friendly accounting tools. Some platforms offer free versions that include basic accounting features. As your business grows, you can upgrade to paid plans when necessary, but starting with a free solution can save you a significant amount of money.

Tip #3. Leverage Online Marketing and Networking

Traditional advertising can be costly, but there are many ways to market your services for free or at a low cost. Utilize social media platforms like LinkedIn, Facebook, and Instagram to promote your services and build a professional network. You can also join local business groups and online communities to connect with potential clients. Word of mouth is powerful in the accounting industry, so focus on building relationships and offering value to your network.

Tip #4. Barter or Exchange Services

If you're skilled in accounting but need other business services (like website design or marketing), consider bartering with other professionals. Offer your accounting services in exchange for things like web development or graphic design. This can help you get the resources you need without spending cash, making it easier to build your business on a tight budget.

#5. Work with Virtual Tools and Freelancers

Instead of hiring full-time staff right away, consider using freelancers or virtual assistants to help with administrative tasks. Platforms like Upwork or Fiverr provide access to affordable professionals who can handle everything from bookkeeping to marketing tasks. This helps you keep labor costs low until your business scales.

By being resourceful and focusing on cost-effective solutions, you can successfully start and grow your accounting firm without a large initial investment. As your client base expands, you can reinvest profits into growing your business.

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How Much Could You Earn With an Accounting Business?

Earnings in the accounting industry can vary based on factors like location, experience, and the services you offer. According to the U.S. Bureau of Labor Statistics (BLS), as of May 2023, the median annual wage for accountants and auditors in the U.S. was $79,880USD, with hourly earnings averaging $38.41.

However, the earning potential increases significantly for those with specialized certifications, like a Certified Public Accountant (CPA), or those offering a broader range of services, such as financial consulting or tax preparation.

Here’s a breakdown of potential earnings:

• Top 10% of Accountants: The highest earners in the accounting field make over $137,280USD per year. These top earners often have extensive experience, advanced certifications, or manage larger firms with a wide range of services.
• Entry-Level Accountants: Accountants just starting out or working in smaller firms may earn less, with the bottom 10% of earners making around $50,440USD annually.
• Certified Public Accountants (CPA): CPAs often command higher salaries due to their specialized knowledge and ability to offer services like auditing and tax advisory.

If you offer specialized services or work with high-net-worth individuals or businesses, your accounting firm could earn even more through premium consulting fees or tax planning services. By managing your client base effectively and focusing on value-added services, the income potential for a small accounting business can grow significantly over time.

Building Your Accounting Business

How to Choose What Accounting Services to Offer

When starting an accounting business, deciding which services to offer is critical to attracting clients and building a sustainable practice. Here are some tips to help you identify the best services to provide, along with the pros and cons of focusing on a niche versus offering a broad range of services.

Tip #1. Understand Your Target Market

Consider the types of clients you want to work with. Are you aiming to serve small businesses, freelancers, or high-net-worth individuals? Understanding your target audience will help you tailor your service offerings. For instance, small business consulting might need bookkeeping and payroll services, while individuals may seek tax preparation or retirement planning assistance. Research your market to understand which services are in demand and where there might be gaps you can fill.

Tip #2. Leverage Your Skills and Certifications

Align your services with your areas of expertise and any certifications you hold. If you're a Certified Public Accountant (CPA), you can offer a broader range of services, such as auditing or financial advisory, which may be out of reach for a non-CPA. Specializing in areas where you have the strongest skills, such as tax planning or business consulting, can also set you apart from competitors and enable you to charge premium rates.

Tip #3. Start with Core Services, Then Expand

If you're just starting out, it’s often best to begin by offering core services like bookkeeping, tax preparation, or payroll. As your business grows, you can expand into more specialized areas such as forensic accounting, auditing, or financial consulting. This strategy allows you to build a client base with core services while slowly broadening your offerings as you gain more experience and resources.

Pros and Cons of Niching Down vs. Offering Broad Accounting Services

Niching Down

• Pros:
  • Specialization Builds Expertise: Focusing on one or two services allows you to become an expert in a specific area, which can attract clients who need those services. For example, if you specialize in tax planning for small businesses, you’ll gain a reputation as a go-to expert in that niche.
  • Higher Pricing Potential: Clients are often willing to pay more for specialized knowledge, allowing you to charge premium rates for your niche services.
• Cons:
  • Limited Client Pool: Focusing on a niche can restrict the number of potential clients. If demand in your area for that specific service is low, you may struggle to build a sustainable client base.
  • Less Flexibility: Offering a narrow range of services might limit your ability to pivot if market demands shift.

Offering Broad Services

• Pros:
  • Attract More Clients: Offering a wider range of services means you can cater to a broader audience. From tax preparation to bookkeeping and financial consulting, you can capture clients with various needs.
  • Stable Revenue Streams: With multiple services, you can generate revenue from different sources throughout the year. For example, bookkeeping provides steady income, while tax preparation brings in more during tax season.
• Cons:
  • Overextension Risk: Offering too many services can lead to burnout or a decline in quality. Managing multiple types of services may stretch your resources and expertise thin.
  • Lower Profit Margins: When offering broad services, you may have to compete on price, especially for more general services like bookkeeping, which can lower your profit margins.

The decision between niching down or offering a wide range of services depends on your expertise, target market, and long-term business goals. It’s important to assess your strengths and local market demands to find the right balance for your firm.

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How to Choose Your Accounting Business Name

Selecting the right name for your accounting business is a critical step in establishing your brand. It needs to be professional, memorable, and reflective of your services. Here are some tips to help you choose the perfect name:

Tip #1. Keep It Professional and Simple

Your business name should convey professionalism and trust. Avoid overly complex or playful names, as they might not resonate with clients looking for serious financial services. A simple, clear name makes your firm sound more credible and easier to remember.

Tip #2. Incorporate Keywords or Services

Consider including words related to your services, such as “Accounting,” “Tax,” or “Advisory,” to make it immediately clear what your business offers. This can also help with SEO (search engine optimization) and make it easier for potential clients to find you online.

Tip #3. Check Domain Name Availability

Before finalizing your business name, check if the domain name is available. A matching website domain will make it easier for clients to find you and build a consistent brand online. 

Tip #4. Think About Future Growth

Choose a name that allows for potential business expansion. For example, avoid using a location-specific name if you plan to serve clients in multiple areas. Also, avoid narrowing the name too much to one service if you plan to offer more in the future.

Tip #5. Ensure Uniqueness

Make sure your business name stands out from competitors. Conduct a search to ensure it’s not too similar to other accounting firms in your area. You may also want to verify that the name isn’t trademarked to avoid legal issues down the road.

Feeling stuck or lacking inspiration? Durable’s Business Name Generator can help spark ideas and check domain name availability, ensuring you pick a name that’s not only effective but also web-ready. 

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Why You Need a Website For Your Accounting Firm

Having a website for your accounting firm is key for attracting clients, building trust, and establishing your brand. Here are some key benefits of having a professional website:

#1. Build Credibility and Trust

A well-designed website helps establish your firm’s professionalism and credibility. Potential clients are more likely to trust businesses with an online presence. Showcasing your services, client testimonials, and qualifications on a website can give prospects confidence in your expertise.

#2. Increase Visibility and Reach

Search Engine Optimization (SEO) is key to ensuring your business shows up in relevant search results. A well-optimized website allows potential customers to find your business easily online. Whether someone is searching for "accountants near me" or "bookkeeping services," having a website increases your chances of appearing in search results, attracting more local customers.

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#3. Offer 24/7 Accessibility

Unlike a physical office, a website is accessible 24/7. Potential clients can learn about your services, book appointments, or contact you at any time. This convenience can give you an edge over competitors who don’t have an online presence or easy ways to engage outside of business hours.

#4. Showcase Your Services and Expertise

A website acts as your digital portfolio. You can clearly outline your services, from bookkeeping to tax consulting, and provide helpful content like blogs or FAQs to demonstrate your expertise. This helps clients understand the full range of your offerings and positions your firm as a valuable resource.

#5. Streamline Client Communication

A website can simplify client interactions by integrating features like contact forms, appointment scheduling, and even client portals for sharing financial documents. This improves the efficiency of your business operations while providing a seamless experience for your clients.

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Build an Accounting Business Website With Durable 

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From a library of website templates to creating logos that highlight your niche to writing website content that sells your services, Durable AI does it all for you. 

With every Durable subscription, you get a customizable, ready-made website, a custom domain, invoicing tools, an AI-powered client management system, and more. Learn more about our subscriptions here. 

Don’t believe us? Try out our AI Website Builder for free! 

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How to Register Your Accounting Company

Registering your accounting firm in the United States involves several legal and administrative steps to ensure your business operates legally. Here’s a step-by-step guide to help you through the process:

Step #1. Choose Your Business Structure

The first step in registering your accounting firm is selecting the legal structure of your business. Common options include:

• Sole Proprietorship: Simple and easy to set up, but you are personally liable for business debts.
• Limited Liability Company (LLC): Offers personal liability protection while allowing flexibility in management and tax structure.
• Corporation (C-Corp or S-Corp): More complex, but offers additional tax benefits and legal protection.

Each structure has different tax implications and levels of personal liability, so it’s important to choose the one that fits your needs best. You may want to consult an attorney or accountant to help decide which structure is right for you.

Step #2. Register Your Business Name

Once you’ve chosen a structure, the next step is to register your business name with your state’s Secretary of State office. If you're using a name other than your legal name, you may need to file a “Doing Business As” (DBA) name.

• Check for Name Availability: Ensure the business name you want to use is unique in your state and hasn’t been trademarked by another company.
• Domain Availability: It's also a good idea to check if your business name’s domain is available for your website (as mentioned earlier).

Step #3. Apply for an Employer Identification Number (EIN)

An EIN, also known as a Federal Tax ID number, is necessary for most businesses, especially if you plan to hire employees or set up a business bank accounts. You can apply for an EIN for free through the IRS website.

Step #4. Register for State and Local Taxes

Depending on your location, you may need to register for state and local taxes, including income tax, sales tax, and employment taxes. Requirements vary by state, so check with your state's Department of Revenue or other tax authorities.

Step #5. Obtain Necessary Licenses and Permits

The licenses and permits you need will depend on your location and the services you plan to offer. For example:

• CPA License: If you plan to offer Certified Public Accountant services, you'll need to be licensed by your state’s Board of Accountancy.
• Business Licenses: Many cities and counties require businesses to obtain a general business license to operate legally.

Step #6. Open a Business Bank Account

Once you’ve registered your company and received your EIN, you should open a separate business bank account. This helps keep your personal and business finances separate, which is essential for both accounting and legal reasons.

Step #7. Consider Insurance

To protect your business, it’s a good idea to invest in professional liability insurance (Errors and Omissions insurance), especially if you’re offering advisory or tax services. This coverage protects you in case of lawsuits or claims of negligence.

If you're looking to start an accounting business in a specific state, our State Guides can help. From licensing fees to payroll taxes, they have everything you need to know to start an accounting company in your state.

• How to start a business in Texas
• How to start a business in California
• How to start a business in Ohio
• How to start a business in Georgia
• How to start a business in Michigan
• More State Guides

What Licenses Are Needed to Start an Accounting Business?

When starting an accounting business in the U.S., the specific licenses and certifications you need will depend on the services you plan to offer and your location. Here’s an overview of the licenses and permits that may be required:

Certified Public Accountant (CPA) License

If you plan to offer CPA services — such as auditing or representing clients before the IRS — you must be licensed as a CPA in your state. Each state’s Board of Accountancy has its own licensing requirements, which typically include passing the Uniform CPA Examination, meeting specific education requirements, and completing a certain number of hours in professional work experience. CPAs also need to complete Continuing Professional Education (CPE) credits to maintain their license.

General Business License

Most states and local governments require a general business license to legally operate your accounting business. This applies regardless of whether you’re a sole proprietor, LLC, or corporation. The process of obtaining a business license will vary depending on your city and state, and fees may apply.

Enrolled Agent (EA) License

If you specialize in tax preparation and representation, becoming an Enrolled Agent (EA) may be beneficial. Enrolled Agents are federally authorized tax practitioners who can represent clients before the IRS. To become an EA, you must pass the Special Enrollment Examination (SEE) and undergo a background check conducted by the IRS.

Tax Preparer Identification Number (PTIN)

If you’re providing tax preparation services, you’ll need to obtain a Preparer Tax Identification Number (PTIN) from the IRS. This number is required for anyone who prepares or assists in preparing federal tax returns for compensation. The PTIN is relatively easy to obtain and can be applied for online through the IRS website.

State-Specific Licenses

Some states may require additional licenses, depending on the services offered and the business structure. For example, certain states require a Sales Tax Permit if you're charging for services that are taxable. Be sure to check with your state’s licensing authorities to ensure you're compliant with all local regulations.

Professional Liability Insurance

While not technically a license, having Professional Liability Insurance (Errors & Omissions) is highly recommended for accounting firms. This insurance protects your business in case of lawsuits due to errors, negligence, or failure to deliver services as promised.

Essential Accounting Business Supplies and Tools

Starting an accounting business requires more than just knowledge and expertise — you’ll need the right tools and supplies to effectively manage your clients and streamline your operations. Here are some of the supplies and tools every accounting firm should have:

• Accounting Software: Accounting software is the backbone of your business, helping you manage client accounts, track expenses, and prepare financial statements. 
• Client Management Software (CRM): A Customer Relationship Management (CRM) tool helps you keep track of client interactions, appointments, and communications. A CRM like Durable allows you to manage client relationships more efficiently and ensure timely follow-ups, which is crucial for building long-term relationships.
• Professional Office Supplies: Even in the digital age, some office supplies remain necessary for organizing and running your firm smoothly:
  • Filing Cabinets and Folders: To securely store physical documents like tax forms and client contracts.
  • Stationery and Business Cards: Professional stationery and branded business cards help establish a formal image for your firm during client meetings.
  • Shredders: Ensuring sensitive documents are disposed of securely is critical for protecting client confidentiality.
• Cloud Storage Solutions: With most accounting work moving online, having a secure cloud storage solution is essential. Tools like Google Drive or Dropbox allow you to safely store and share financial documents with clients. These services also help ensure that your files are backed up and accessible from any location.
• Secure Communication Tools: Since accounting firms deal with sensitive client information, secure communication tools are critical. Encrypted email services like ProtonMail or secure client portals for document sharing (such as SmartVault) ensure that private information stays protected.
• Time-Tracking and Billing Tools: For many accounting firms, billing clients by the hour is standard practice. Tools like Toggl or Harvest help track billable hours and create invoices automatically, ensuring you get paid on time for your services.

By equipping your accounting business with these tools and supplies, you can operate efficiently, keep your clients satisfied, and maintain the highest level of professionalism.

Growing Your Accounting Business

How to Market Your Accounting Business

Marketing your accounting firm effectively is key to attracting new clients and building your reputation. Here are some easy marketing tips for small business owners:

Tip #1. Build a Professional Website

A well-designed, user-friendly website is essential for establishing your firm’s credibility and showcasing your services. Include details about your services, testimonials, and contact information. Optimizing your website for SEO (search engine optimization) will help potential clients find you through online searches. Consider adding a blog with helpful accounting tips, which can boost your search rankings and demonstrate your expertise.

Tip #2. Post on Social Media

Use social media platforms like LinkedIn, Facebook, and Instagram to connect with potential clients and share content that highlights your expertise. Post updates about tax deadlines, accounting tips, and financial planning advice to engage your audience. LinkedIn, in particular, is a great platform for professionals looking to network and build credibility in the industry.

Tip #3. Join Local Networking Groups

Networking groups like local chambers of commerce or small business associations provide opportunities to meet other business owners who may need accounting services. Attend events, introduce your services, and hand out business cards. Building face-to-face relationships can lead to referrals and long-term clients.

Tip #4. Offer Free Workshops or Webinars

Hosting free workshops or webinars on accounting topics, such as small business tax strategies or financial planning, is a great way to demonstrate your expertise while building your brand. These events allow potential clients to get to know you and your services in a non-sales setting, making them more likely to trust you when they need help.

Tip #5. Use Email Marketing

Building an email list from your website and networking activities allows you to stay in touch with potential clients. Use email newsletters to share valuable content like tax tips, accounting advice, and business updates. Email marketing for accountants is a cost-effective way to stay top-of-mind for clients, especially during tax season or year-end accounting needs.

These strategies will help you build awareness, grow your client base, and establish your accounting firm as a trusted service provider in your community.

Tip #6: Experiment With Online Ads

Increase your visibility through targeted online ads, like Google Ads and Facebook Ads, to connect with specific audiences based on their location, interests, and online behaviors. Develop engaging ads that highlight your services and feature strong calls to action. Remember to always track the performance of your ads and make adjustments as needed to optimize their effectiveness.

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How to Find and Secure Your First Accounting Client

Securing your first client is an exciting milestone for your accounting business, but it can also be challenging. Here are several effective strategies to help you land that first client:

#1. Create a Google Business Profile

Setting up a Google Business Profile (formerly Google My Business) allows your business to appear in local search results and Google Maps. This is one of the easiest and most effective ways to reach customers searching for accounting services in your area. Make sure to include accurate information, such as your hours, contact details, and photos of your work.

#2. Use Local SEO

Optimize your website for local search by including keywords such as “bookkeeping in [your city]” on your website. Include location-based phrases in your content, meta descriptions, and titles. This helps your business rank higher in local search results and attract more customers from your area.

#3. Leverage Your Personal and Professional Network

Your existing network can be the easiest place to find your first client. Reach out to friends, family, or former colleagues who may need accounting services or know someone who does. Let them know that you’ve started your own accounting business and are available to help with their bookkeeping, tax preparation, or financial planning needs. Offering a discounted rate or free initial consultation to your first clients can incentivize them to work with you and refer others.

#4. Ask for Referrals from Trusted Professionals

If you’ve worked with other professionals — such as lawyers, bankers, or business consultants — reach out to them for referrals. Professionals in complementary fields often work with clients who need accounting services. Building relationships with these professionals can lead to a steady stream of client referrals. Be sure to offer value in return, either by referring your own clients to them or offering reciprocal services.

#5. Offer Free Consultations or Audits

Offering free consultations or financial audits is an effective way to showcase your skills and demonstrate value to potential clients. By providing a free initial service, clients can experience firsthand the benefits of working with you, which may lead to long-term relationships. For example, offering a complimentary tax strategy session can help clients see potential savings and encourage them to engage your services for full tax preparation or advisory work.

#6. Attend Local Business Networking Events

Local business events, such as chamber of commerce meetings, small business expos, or industry conferences, are great places to meet potential clients. Attending these events allows you to introduce yourself to small business owners who may need accounting services. Have your business cards and elevator pitch ready, and be prepared to follow up with interested prospects after the event.

By actively using these strategies, you’ll be able to find and secure your first accounting client, build a strong reputation, and grow your business from there. The key is to be proactive, persistent, and always deliver high-quality services.

Learn How to Much to Charge For Your Accounting Services 

Setting the right price for your accounting services is important for both attracting clients and ensuring your business remains profitable. Here are a few factors to consider when determining how much to charge:

#1. Consider the Services You Offer

Your pricing will depend on the types of services you provide. For example:

• Bookkeeping: This typically involves managing day-to-day financial transactions and can be charged on an hourly or monthly basis. 
• Tax Preparation: More specialized services, like tax preparation, often command higher rates. 
• Advisory Services: Financial consulting and business advisory services typically have premium pricing because of the value they provide.

#2. Hourly vs. Flat Rate Pricing

Many accounting firms charge by the hour, especially for complex or ongoing services like tax planning or consulting. However, some clients prefer predictable flat fees for specific services, such as payroll or tax filings. If you offer flat-rate pricing, ensure that the rate covers your time, effort, and overhead costs while providing value to the client.

#3. Research Local Market Rates

It's important to research what competitors in your area are charging for similar services. Pricing too high can deter potential clients, while pricing too low can make it hard to cover your business expenses. In general, accountants in major metropolitan areas tend to charge more than those in smaller towns.

#4. Factor in Your Experience and Credentials

Your level of expertise, certifications, and experience will significantly impact your rates. For example, Certified Public Accountants (CPAs) generally charge more than non-CPA accountants due to their additional training and ability to offer specialized services. According to the U.S. Bureau of Labor Statistics, CPAs tend to command higher rates, with salaries or hourly rates reflecting their advanced qualifications​

#5. Offer Package Pricing

Consider offering service packages that bundle multiple accounting services, such as bookkeeping, tax preparation, and payroll management, into a monthly retainer. This makes your pricing more predictable for clients while giving you recurring revenue. Package pricing can range depending on the scope of services and the size of the client’s business.

#6. Consider Value-Based Pricing

For services that directly impact a client’s bottom line, like tax strategy or business consulting, consider value-based pricing. This approach involves setting fees based on the value or savings you provide to the client rather than the time you spend. If your services save the client thousands in taxes or optimize their financial operations, you can justify a higher price.

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How to Manage Your Accounting Business Clients

Effectively managing your accounting clients is key to maintaining strong relationships, ensuring smooth operations, and scaling your business. Here are several strategies to help you stay organized and provide exceptional service:

#1. Use Client Management Software

Implementing a Customer Relationship Management (CRM) system like Durable helps streamline your interactions with clients. A CRM also helps manage client data, billing, and follow-ups in one centralized location, improving efficiency.

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#2. Set Clear Expectations

From the beginning of your engagement, ensure your clients understand what services you provide, deadlines, and payment terms. Offering detailed service agreements or engagement letters can help clarify the scope of work and avoid misunderstandings. Regularly review these agreements, especially when the client's needs evolve.

#3. Establish Regular Communication

Frequent communication is crucial for maintaining long-term client relationships. Set up regular check-ins with clients, whether it’s quarterly reviews, monthly calls, or email updates, to keep them informed about their financial status and any important tax or regulatory changes. This not only shows you're proactive but also builds trust.

#4. Automate Billing and Payments

Use accounting software to automate your billing process, track hours, and send invoices. This will streamline your payment system and ensure timely billing. Setting up automatic reminders for late payments and offering online payment options can also make it easier for clients to pay their bills on time.

#5. Segment Your Clients

Not all clients have the same needs or value to your business. Segment your clients based on the size of their business, the services they require, or the frequency of interactions. This allows you to tailor your service approach accordingly. For example, high-value clients may require more hands-on attention, while smaller clients may benefit from more automated solutions.

#6. Offer a Client Portal

Providing clients with a secure, easy-to-use portal for document sharing, tax filings, and communication can streamline collaboration. Online tools and platforms allow clients to upload necessary documents, view completed work, and ask questions, reducing the back-and-forth of email exchanges while ensuring secure handling of sensitive financial information.

#7. Gather Feedback

Periodically ask for client feedback to gauge their satisfaction and identify areas for improvement. You can send simple surveys or ask for direct input during client meetings. This not only shows that you value their opinion but also gives you insight into how to improve your services and retain clients longer.

Managing Your Accounting Business

What Insurance Do You Need For an Accounting Business? 

Running an accounting business involves managing sensitive financial information, which exposes your firm to various risks. Having the right insurance coverage is crucial to protect your business from potential liabilities. Here are the key types of insurance you should consider for your accounting firm:

Professional Liability Insurance (Errors & Omissions Insurance)

Professional liability insurance, also known as Errors & Omissions (E&O) Insurance, is essential for accounting businesses. This coverage protects you if a client claims you made an error or omission in your services that caused them financial harm. For instance, if you provide inaccurate tax advice or make a mistake in financial reporting, this insurance covers legal fees, settlements, and damages.

Why You Need It: Accountants deal with complex financial matters, and even a minor mistake can lead to significant losses for clients. E&O insurance safeguards your business from lawsuits and costly legal battles.

General Liability Insurance

General Liability Insurance covers common risks that can affect any business, such as property damage, bodily injury, or personal injury claims. For example, if a client slips and falls while visiting your office, general liability insurance would cover their medical expenses and any related lawsuits.

Why You Need It: Although accounting is a low-risk profession in terms of physical accidents, this coverage is essential for protecting against unforeseen events that could occur in your office space.

Cyber Liability Insurance

As an accounting firm, you likely store sensitive client information such as financial records, tax returns, and personal identification details. Cyber Liability Insurance protects your business in the event of a data breach, hacking attempt, or cyberattack. It covers the costs of notifying affected clients, recovering lost data, and dealing with regulatory fines.

Why You Need It: The risk of cyberattacks is increasing across all industries, and accounting firms are particularly vulnerable due to the sensitive nature of the information they handle.

Business Owner’s Policy (BOP)

A Business Owner’s Policy (BOP) bundles several important types of insurance, including general liability, commercial property insurance, and business interruption insurance. This package offers comprehensive protection at a lower cost than buying each policy separately.

Why You Need It: A BOP is a great option for small accounting firms, as it combines essential coverage into one affordable package. It protects your office space, equipment, and operations from unexpected interruptions.

Workers’ Compensation Insurance

If you have employees, you may be legally required to carry Workers’ Compensation Insurance. This coverage provides benefits to employees who are injured or become ill while on the job. It covers medical expenses, lost wages, and rehabilitation costs.

Why You Need It: Even in a low-risk environment like an accounting office, accidents can happen. Workers’ compensation insurance ensures your employees are taken care of and helps you comply with legal requirements.

Commercial Property Insurance

If you own or lease office space, Commercial Property Insurance protects your physical assets, such as your office building, computers, and furniture, from risks like fire, theft, or natural disasters.

Why You Need It: This coverage is vital for ensuring that your business can recover financially if your office or equipment is damaged or destroyed.

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Set up Invoicing For Your Accounting Business

As an accountant or bookkeeper, you’ll know that efficient invoicing is important for managing cash flow and ensuring that you get paid on time for your services. Setting up a professional and reliable invoicing system can help streamline your accounting business operations. Here’s how to set up invoicing for your firm:

#1. Choose an Invoicing Software

Using invoicing software is the most efficient way to generate, send, and track invoices. Many accounting platforms offer built-in invoicing features. These tools allow you to customize your invoices, set payment reminders, and automate recurring billing.

Why Use Invoicing Software? It simplifies the entire billing process, reduces errors, and saves time by automating repetitive tasks.

#2. Create Professional, Branded Invoices

Ensure that your invoices look professional and include your business’s branding. This means incorporating your logo, business name, and contact information. A well-designed invoice reinforces your business’s professionalism and makes it easier for clients to recognize and pay you.

What to Include on Your Invoice:

• Business name and contact information
• Client’s name and details
• Invoice number for easy tracking
• List of services provided with itemized charges
• Payment terms and due date
• Accepted payment methods (e.g., bank transfer, credit card, PayPal)

#3. Set Clear Payment Terms

Defining clear payment terms upfront is essential for avoiding confusion and late payments. Specify your preferred payment methods and deadlines (e.g., Net 30, due upon receipt). It’s also helpful to outline any late fees or penalties for overdue payments.

Tip: If possible, offer incentives for early payments (e.g., a 2% discount if paid within 10 days) to encourage clients to pay promptly.

FYI: When you use Durable’s Invoice Builder Tool it’s easy for clients to pay you by credit card, ACH, or Apple Pay.

#4. Automate Recurring Invoices

For clients who need ongoing services like monthly bookkeeping or payroll, setting up recurring invoices can save time and ensure consistency. Most invoicing software allows you to automate this process, ensuring that your clients are billed at the same time each month without any manual input.

Why Automate? Automating recurring invoices reduces administrative work, ensuring that clients are invoiced on time and payments are consistent.

#5. Track Invoices and Payments

It’s important to monitor the status of each invoice to ensure timely payments. Use your invoicing software to track when an invoice is sent, viewed, and paid. Set up automatic payment reminders for clients who miss the payment due date.

Why Tracking Matters: Tracking invoices helps you stay on top of unpaid invoices, improving your cash flow and reducing the likelihood of missed payments.

#6. Offer Multiple Payment Options

Make it as easy as possible for clients to pay you by offering multiple payment options. In addition to traditional bank transfers or checks, consider accepting credit cards and online payment platforms like PayPal or Stripe. Offering a variety of payment methods increases the likelihood that clients will pay on time.

How to Hire and Train People to Join Your Business

As your accounting business grows, you may reach a point where hiring additional staff becomes necessary to manage client workloads and expand your service offerings. Here’s a guide to help you through the hiring and training process, along with tips on knowing when it’s the right time to hire.

When Is the Right Time to Hire?

Knowing when to bring on new employees can be challenging. Here are a few signs that it may be time to expand your team:

• Overwhelming Workload: If you're consistently struggling to keep up with client demands or missing deadlines, it’s a sign that additional help is needed to maintain the quality of your services.
• Turning Down New Business: If you’re turning away potential clients because you don’t have the capacity to take on more work, hiring someone could help you grow your business.
• Business Growth Goals: If you’re ready to expand your service offerings or target new markets, you’ll need extra manpower to achieve these goals.
• Consistent Administrative Burden: Spending too much time on administrative tasks (like invoicing or scheduling) instead of billable client work may indicate the need for an assistant or junior accountant.

Steps to Hiring People for Your Business

• Define the Role and Responsibilities Start by identifying the specific tasks and responsibilities you want the new hire to handle. This could include client management, bookkeeping, tax preparation, or administrative duties. Write a clear and detailed job description that outlines qualifications, skills, and expectations.
• Determine Employment Type Decide whether you need a full-time employee, part-time help, or a contractor. For smaller firms, hiring freelancers or part-time staff may be a more flexible and cost-effective solution, especially if you’re testing the waters before committing to a full-time role.
• Create a Competitive Compensation Package Research industry standards for salaries in your area, based on the role and the level of experience required. Be sure to offer competitive pay and benefits to attract qualified candidates. Compensation should also include non-monetary perks, such as remote work flexibility or professional development opportunities.
• Advertise the Job Post the job description on online platforms like LinkedIn, Indeed, or specialized job boards for accountants. You can also leverage your professional network and reach out to industry contacts for referrals.
• Conduct a Thorough Interview Process Screen applicants based on their qualifications and conduct interviews to assess their fit with your company culture and the specific needs of your accounting firm. Be sure to ask questions that assess both technical skills (e.g., knowledge of tax laws or accounting software) and soft skills (e.g., communication and time management).
• Check References and Credentials Verify the candidate’s professional qualifications, references, and certifications (especially for roles requiring CPA licenses). This step ensures that you hire someone with the appropriate skills and experience for your business.
• Onboard and Train Your New Employee Once you’ve hired the right person, a well-organized onboarding process is crucial for their success. Provide clear instructions on your firm’s processes, introduce them to any software they’ll be using (like QuickBooks or Xero), and outline your expectations. Training should include both technical and client-facing aspects, so they can quickly integrate into the workflow and contribute to the business.

Training Tips for New Employees

• Provide Access to Ongoing Education: The accounting industry is constantly evolving, so offering access to Continuing Professional Education (CPE) programs helps keep your team up to date on tax laws and regulations.
• Mentorship and Shadowing: Have new hires shadow experienced team members to learn best practices and how to interact with clients. A mentorship program can also help them develop soft skills and integrate into the company culture.
• Set Clear Milestones: Establish clear goals and performance benchmarks for your new hires during the first few months to ensure they are meeting expectations and contributing to the firm’s success.

Expert Advice For Running Your Business

Resources for New Accounting Firm Business Owners 

Staying informed about the latest trends, industry best practices, and regulatory changes is crucial for running a successful accounting firm. Here are some valuable resources to help new accounting business owners stay up to date:

Websites:

• Accounting Today: A leading source for accounting news, trends, and analysis. It covers tax laws, accounting standards, and practice management tips.
• The American Institute of CPAs (AICPA):The AICPA offers resources for accounting professionals, including news, continuing education courses, and guidance on best practices.
• IRS Newsroom: Stay updated on the latest tax laws, regulations, and important IRS announcements that may impact your clients.
• Small Business Administration (SBA): The SBA provides resources for small business owners, including accounting tools, financial advice, and guidance on setting up businesses.
• CPA Academy (Free Webinars): CPA Academy offers free webinars and courses on various accounting topics, including tax law updates, technology in accounting, and practice management.

Podcasts:

• Journal of Accountancy Podcast: Produced by the AICPA, this podcast covers topics like tax updates, technology in accounting, and business growth strategies for accountants.
• Thrivecast by Jason Blumer
  This podcast discusses innovative approaches to running an accounting firm, focusing on growth strategies, modern firm management, and client relationships.

Books:

• "Profit First" by Mike Michalowicz: A must-read for small business owners, this book introduces a cash management system that ensures profitability by prioritizing profit before expenses. It’s especially useful for accountants advising business clients on financial health.
• "The E-Myth Accountant" by Michael E. Gerber and Darren Root: This book helps accountants build a business mindset and grow their practices. It focuses on systematizing operations to create sustainable growth.
• "Principles of Taxation for Business and Investment Planning" by Sally Jones: This comprehensive guide is great for keeping up with U.S. tax laws and learning how to optimize tax strategies for clients.
• "Scaling Up" by Verne Harnish: Ideal for entrepreneurs and small business owners, this book focuses on scaling a business sustainably. It’s relevant to accountants looking to expand their firm while maintaining operational efficiency.

Your Business Launch Checklist

Starting an Accounting Business Checklist: 

Use this comprehensive checklist to guide you through the key steps of launching your own accounting firm, from setting up your business structure to marketing your services.

#1. Choose Your Business Structure

• Decide whether to form a Sole Proprietorship, LLC, or Corporation based on liability and tax implications.
• Register your business name with your state’s Secretary of State office.
• Obtain an Employer Identification Number (EIN) from the IRS.

#2. Register Your Business and Obtain Licenses

• Apply for a Certified Public Accountant (CPA) License if you plan to offer CPA services (state-specific requirements apply).
• Obtain a General Business License and any necessary local permits for operating legally.
• If offering tax services, register for a Preparer Tax Identification Number (PTIN) through the IRS.

#3. Get the Right Insurance

• Secure Professional Liability Insurance (Errors & Omissions) to protect against client claims of negligence.
• Consider a Business Owner’s Policy (BOP) for general liability and property protection.
• Add Cyber Liability Insurance to protect against data breaches.

#4. Set Up Your Office and Tools

• Choose an office location (home-based or rented space) and invest in essential office supplies like computers, printers, and secure filing systems.
• Select and implement accounting software such as to manage client accounts and transactions.
• Use cloud storage solutions like Google Drive or Dropbox to securely store client data.
• Establish a Client Management System (CRM) to track communications, appointments, and billing.

#5. Set Up Invoicing and Billing

• Use invoicing software to generate professional, branded invoices.
• Define clear payment terms and automate billing for recurring clients.
• Offer multiple payment options, including credit cards and online platforms like PayPal or Stripe.

#6. Market Your Accounting Firm

• Create a professional website showcasing your services and optimizing it for SEO.
• Use social media platforms like LinkedIn and Facebook to promote your services.
• Join local networking groups and attend industry events.
• Consider offering free workshops or webinars to showcase your expertise.

#7. Find and Secure Your First Clients

• Start by leveraging your personal network to find potential clients.
• Offer free initial consultations or audits to demonstrate your value and secure long-term clients.

#8. Hire and Train Employees (When Ready)

• Recognize the right time to hire (e.g., overwhelming workload or turning down business).
• Define clear roles and hire employees or freelancers based on your immediate needs.
• Onboard and train new hires on firm processes, accounting software, and client management best practices.

#9. Stay Informed and Continue Learning

• Use resources like Accounting Today, the AICPA, and the IRS Newsroom to stay updated on industry trends.
• Subscribe to podcasts like Journal of Accountancy or read books like Profit First for ongoing professional development.
• Attend webinars from platforms like CPA Academy to fulfill Continuing Professional Education (CPE) requirements.