Starting an accounting firm doesn’t have to be as difficult as you think. We are in times when startup culture is dominant. The youth are ambitious, focused, and full of dreams. But it is not enough to just dream. As the young generation of accountants steer away from the regular 9-5, aim for a career that allows more flexibility and allows them to do more. While many accountants aim to open their accounting firms, many get lost mid-way – mostly because they lack the means to understand what is the right thing to do and how.
Starting an accounting firm is not just about numbers and financial statements, it is about building a brand that clients can trust. It is about using innovation to your advantage, staying updated with the industry trends and staying ahead of the competition. Whether you are a seasoned accountant just setting your foot into entrepreneurship or a recent graduate with a passion for starting your accounting firm, here are some crucial insights from Finsmart Accounting – globally trusted for outsourced bookkeeping services in India.
Start your accounting firm in 2024
Work with these accounting business commencement tips and ideas to get started in the right direction:
– Just start: The interesting thing about starting your own accounting firm is that there is no right time to begin. Accounting being a nuanced field, starting a business, can be overwhelming, especially if you are yet to gain experience. Instead of waiting for the stars to align, to start an accounting firm, would-be firm owners need to let go of procrastination. Starting a firm is all about taking a leap of faith.
Conduct the research you need, build your core team, determine the accounting services you want to provide, set your target audience, and know what they want. Instead of worrying about if you will be able to make it big, focus on the learning process and take the initial steps of starting an accounting firm.
– Don’t overthink: There is no doubt in the fact that starting your own firm and worrying about the pros and cons is a big deal, but the end goal is what you need to focus on. Remember, there will always be someone to tell you that you will not be able to make it. It is only normal to want to analyze every aspect of your accounting business plan – from infrastructure to strategy, client base to the solutions you provide. But it is important to focus only on things that are within your control.
Trust your instincts, but do not forget to make informed decisions and be prepared to adjust your approach accordingly. Your dreams of starting an accounting firm will bear fruits!
Recommended: Learn about accounting outsourcing services pricing in India.
– Your first clients aren’t your forever clients: When you are starting, you might want to focus on your first clients thinking that they are the ones to make or break your accounting business. That could not be far from the truth. It is imperative to make your clients feel important, heard, and valued. But that should not be at the expense of your mental health. Just because they are your first clients, you do not need to do “everything” or be available round the clock.
While they will play a key role in establishing your accounting firm and helping you gain experience, your client base will evolve. There is a possibility that in the next 5 years, you will cater to a completely different set of clients. Instead of focusing on delivering services, focus on delivering experience, regardless of their tenure, and use the feedback to improve constantly.
– Credentials don’t matter: This does not mean your certifications are worthless. This simply means they aren’t the sole determinant of the success of the business. Your technical expertise in accounting and the certifications that come along remain relevant for the customer only during the core work. But a business-client relationship is way beyond that. Clients look for how you communicate with them – your responsiveness, your approach to problem-solving, and how you deal with them daily.
Focus on honing your skills, stay updated with industry trends, and improve your accounting services and processes to meet client needs constantly. Your reputation is all about delivering excellent customer service and that is what will speak volumes about your expertise. However, it is important to note that certifications are paramount when it comes to data security and compliance. Super important to start a CPA practice in 2024!
– Accept that fear is normal: For entrepreneurs, especially in a field like accounting, the fear of failure is a common experience. Instead of being pulled back by it, to become a successful entrepreneur, it is important to acknowledge the fear. This fear can become your motivation to push yourself out of your comfort zone and take informed and calculated risks. Some entrepreneurs might worry about what happens if they fail in the venture. Well, it is most definitely not the end of the world.
You can either use the experience gained to keep pushing or seek opportunities elsewhere. After all, there is no dearth of accounting and finance jobs. The uncertainty, when you start your bookkeeping firm, gives you the courage and confidence to emerge stronger and be more resilient.
Read on to discover more tips for starting your own accounting firm or check out this blog to learn about auditing in accounting.
– Get your tech right: Well, this is no secret. Artificial intelligence and technology have been ruling in 2024 and the accounting field is no exception. If you want to start your accounting firm, having a “no AI” approach is detrimental to your business. It’s a world of automation and for good reasons. They help you work efficiently with a lesser number of resources, have a quick turnaround time, and deliver quality.
When starting your bookkeeping firm, you should determine which accounting software you want to use for functions like bookkeeping, taxation, etc (Quickbooks, for example), what will be your task management software (Monday.com for example), and what tools will help you communicate easily and better (Teams, for example). Technology is changing rapidly. Staying abreast with the latest ones will only help start your accounting firm on the right note.
– Know what brings happiness: When you choose to become an accounting entrepreneur, you levy yourself with a whole lot of responsibilities and uncertainties. While the world talks about work-life balance, it is important to find what brings happiness to your work. Finding the “life” in your work is important, if you do not want to end up stressed and exhausted. While many might tell you that you cannot make your hobby, your job, that isn’t true.
You need to find your happy place and blend it seamlessly with your work. For entrepreneurs, especially at the beginning, it is wise to acknowledge you will not get a lot of time for “life” separately. Instead of letting that lead to frustration, use what you love to your advantage.
– Use social media to your advantage: Social media, when used correctly, can help businesses to an immense extent. From marketing all about your new business to finding clients, social media platforms are an incredibly powerful tool. Besides engaging with your target audience and understanding their pain points, they also help in connecting with potential clients and allow the showcase of expertise.
Thought leadership is a popular aspect of social media, that helps you showcase exactly what you want to show the world. By using social media strategically, you can build credibility and grow your firm’s online presence, because that is where the world is.
Recommended: Cash flow management reporting tips and ideas for CPAs.
– Build your collaborative network: Being an entrepreneur in a field like accounting is not a cakewalk. Many have already trodden the path and know exactly what you feel today. Talk to people who know what you want to know, get the help you need, and open up opportunities for your firm’s growth. Attend industry events, join professional associations, and participate in networking groups. By building your collaborative network while scaling your accounting practice, you can tap into a wide range of expertise, resources, and client opportunities that enable growth and success.
Start your accounting firm: Endnote
You might think accounting businesses are all about knowing the technical nuances, but the thing is all about knowing what your clients want and how they want. The interesting thing about businesses is that you can learn most of the ingredients for success on the way, all you need is a little support and trust in the process.
If you are all set to start your own accounting firm, but unsure on how to deliver quality, you might want to consider onboarding an outsourcing partner. A firm like Finsmart Accounting will help you deliver deadlines, support clients, and deliver projects whenever you have too much on your plate. Get all the help you need by writing to us at connect@finsmartaccounting.com.
Also, don’t forget to check out:
Accounts receivable outsourcing services
Outsourced financial controller services
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
