Five Problems to Overcome When Starting An Accountant Practice

There are many accountants out there who would love to start their own small practice. After you qualify, you tend to spend a few years working for someone else, and there are always things you think can do better. But let’s face facts – setting out on your own is hard. And, there will be many problems you encounter. We’ve put together a list of five of the biggest issues you might face – and how to prepare for them.

Finding the time. Don’t underestimate how draining it can be to start a business yourself. And, if you have other things going on in your life at the time, it might be better to wait awhile. When you are working with a big firm, you will have set hours, and people to do other important business tasks for you. When you are on your own, you will have no one. Your days will be long, and you will never have enough time for everything. You can forget about the 9-5 schedule, and also expect to work on weekends. Things will improve, but it will take a while – do you honestly have the time?

Fitting in your CPE. As you will know, all CPAs must continue their education if they want to keep their licenses. Your CPE is critical, then, and you will need to leave time aside to refresh your knowledge and learn new skills. There are a variety of ways of doing this, from the standard courses on at your local college to online CPA webinars. Regardless of how you intend to do your CPE, it is critical that you set aside the time.

Lack of customers. Your first big issue will be finding customers for your practice. Marketing is essential, of course. And, we recommend that you consider outsourcing to a reputable marketing agency to give you the best possible start. But don’t forget that word of mouth is the way you will find most of your clients. While you won’t be able to take clients from your old firm with you – yet – there is some groundwork you can prepare. Always work beyond and above your client’s expectations, right from the start of your career. It’s how you will make a name for yourself, and word will soon spread that you are someone to work with.

Lack of targeting. You could set up as a general accountant, but the reality is you are more likely to succeed if you target a particular niche. That’s not to say you shouldn’t make your clients aware of what you can do, of course. But it does mean you should also concentrate on your specialist skills and strengths. For example, perhaps you are fantastic at performing audits. You could then focus on targeting small retail businesses. Or maybe you are a tax specialist, and you could help startups ensure their businesses are set up correctly. Work out what you are best at, and always seek out suitable customers.

Not seeking help. Finally, just because you know about accountancy advice, it doesn’t mean you can’t enjoy using an adviser yourself. An external accountant will be able to see your business with fresh eyes, and will only be a benefit. Never be afraid of asking for advice and professional guidance