As an accountant, you have a choice to make when it comes to your career path – you can either work for a company or set up on your own. If you work for a company, you can enjoy a good paycheck and job security. However, when you set up your own accounting firm, the possibilities are endless. In this article, you will learn how to set up your own accounting firm.
Plan your business and brand
Once you have decided to start your own accounting firm, the first thing that you need to do is create a business plan. By creating a business plan, you will be able to see if this type of work is really for you. This plan should include your objectives, strategies, and costs. This will also stand you in good stead if you’re looking for funding.
Alternatively, you could buy an existing firm and rebrand it as your own. This will give you access to an existing pool of clients and an established reputation. Poe Group helps the buying and selling of accountancy firms, so this is a great place to start your search.
Form a legal entity and register for taxes
Before you start working, you need to form a legal entity. This can be done by registering as an LLC or S-Corp with your state’s government. With this type of structure, the business is treated as its own entity, meaning that it cannot be held accountable for things that happen within the firm. You will also need to apply for an Employer Identification Number which you can do through the IRS.
Next, set up a business checking account for your accounting firm and do your best to separate personal and business expenses. This will help keep track of how much money you are spending on the company. You’ll also need to register your firm with an accountant designation so that clients have peace of mind that you know your stuff.
Acquire talent and equipment for the office
Now that you have figured out what type of work to do and how to structure your business, it’s time to start hiring employees. Depending on the size of the company, you might be able to get away with just hiring yourself. However, you can also hire accountants, bookkeepers, secretaries, and office managers. In addition, there are many people who would be willing to work for a smaller salary to gain experience with an established company.
Network and market yourself
After you have set up the company, it’s time to market yourself. This can be done through networking events and trade shows. You can also put together a company newsletter that you can send out to your clients regularly. Joining professional organizations is another good way of meeting potential clients and other members in your field.
Get business insurance
Just like any other business, you need to make sure that you have the proper insurance. This will protect your company and everyone who is working for it. Look into professional liability insurance as well as errors and omission plans. You also might consider getting a health plan for employees if they request one. Make sure that these costs are part of your business plan so that you can keep your expenses under control.