What to Consider Before Starting an Accountancy Practice

Are you looking to leave the constraints of employment and utilise your financial expertise on your own terms? Perhaps you’ve identified a gap in the local market, or you simply want to realise a dream business venture. In any case, it’s important to be aware of some key considerations related to starting an accountancy practice.

This resource will help you gain a better overall perspective on your idea and potentially identify some factors that were previously missed. It’s often the first steps that are the most difficult, so make things a little easier by reading through the following considerations.

Eligibility

As you might already know, you need the appropriate certification to start your practice. This typically requires two years’ post-qualification experience to obtain. You’ll also have to form a legal entity, register for taxes and meet local licensing requirements. Finally, it may be necessary or at least beneficial to obtain certain kinds of insurance.

Responsibilities

Especially if you’re moving out of an accounting career, it’s important to ensure that you’re comfortable with taking on the challenges and responsibilities associated with this endeavour. Remember, you will now be responsible for everything that is usually dealt with by separate departments, such as compliance, financials and marketing.

Expectations

Most people who start their own practice do so in part to achieve more freedom when it comes to working hours. This, for example, can be in tandem with your children growing up, or purely as a lifestyle preference. You might still want to work two days a week in employment and three days as a sole practitioner.

It’s important to be realistic here, as your desired approach may not be viable when it comes to meeting the demands of your new business.

If true, then it’s worth looking into solutions, such as buying an existing practice instead of going through the lengthier process of establishing your own. Resources such as retiringaccountant.co.uk/ can help you with the purchase of a suitable practice along with a range of other services.

Business Plan

A business plan is key to mapping out the specifics and discovering some unknowns. It will also serve as a valuable tool when seeking investors to help you get established. Some important topics to cover in your business plan include the upfront and ongoing expenses, target market, company name and expected duration before breaking even.

Marketing

Chances are that your accountancy practice isn’t the only one nearby. Therefore, you need to develop a marketing strategy that will ensure an advantage over the competition. In the case of an accountancy practice, most of your business will come from establishing relationships with local professionals and business owners.

It would then be wise to include networking opportunities in your marketing plan, such as local trade shows and events. Having a professionally-designed website and presence on appropriate social networks, such as LinkedIn, is also important.

Conclusion

Thorough consideration of the above points will go a long way in helping you start a successful accountancy practice. Having come this far is already telling of your effort, so be sure to keep moving forward.