How to Start a CPA Firm
Enjoying a position of prestige right along with doctors, lawyers and engineers, Certified Public Accountants represent professionalism. A CPA performs the same duties as an accountant but is held to a higher standard, so a CPA can demand more compensation. Starting a CPA firm is a profitable enterprise.
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Instructions
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Obtain Your Certification as a CPA
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Complete a 4-year bachelor's program in accounting. Some additional schooling may be necessary in preparation for the CPA exam. Accountants who have worked for 15 years and spent at least 75 percent of their time performing audits are also eligible for taking the exam.
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Finish 2 years of professional experience with diverse exposure to the accounting field in order to apply for licensure. Applicants who have completed advanced study in accounting can shave 1 year off this requirement.
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Take the CPA Exam, as prepared and graded by the American Institute of Certified Public Accountants. Pass and you receive your license as a CPA.
Start Building the CPA Firm
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Examine the market in which you plan to start a CPA firm and evaluate whether the market can bear another CPA firm and whether your strategy for service is unique enough to stay in business.
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Draw up a business plan for your CPA firm in order to speak intelligibly before a creditor or potential investor. You establish your marketing strategy as well legal and financial structures through the writing process.
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Hire an attorney to handle the paperwork of establishing your firm as a legal business entity. Obtain an employee identification number through the IRS (see Resources below).
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Consider how much start-up capital you will need in order to furnish an office and weather the 6-month period it can take to begin seeing some revenue. Seek funding through selling your debt or equity in your firm.
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Staff your CPA firm. Post ads in newspapers and websites for job seekers. You may also want to hire temp workers for your start-up and keep the best on as permanent employees.
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Get to work networking and start building a client base. Develop relationships with lawyers because they often encounter clients who need accounting help or they may need accounting help themselves.
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Tips & Warnings
Invest in Professional Liability Insurance to protect yourself in a litigious business world.
