1.
How do I set a tax consultancy and accounting services
firm?
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2 Answers
Vashvi Panwar, CA Article (2017-present)
Answered March 29, 2018 · Upvoted by Dhaval Dave, MBA Finance, G H Patel Post Graduate Institute of
Business Management (2020)
Establishing your own accounting firm can be an incredibly rewarding experience with an
impressive side of perks.
However, before you make the jump into starting your own business, there are several key
issues to be aware of. I've compiled imperative measures that accountants should
acknowledge when starting their own firm. By contemplating these dimensions, your firm
should be off to a great and promising start.
Before any of the below mentioned measures, most important thing is to be accurately
knowledgeable and experienced towards your profession. The right networking and funds
are the key to beginning of your own business.
1. Market Yourself
Working for a large CA firm does not guarantee a huge client base once you start your own
firm. Many new business owner CAs do not realize this. One way to put yourself out there is
to be the lowest bidder on public bid work. When you get the job, perform above and
beyond the client's expectations. If you do this, you give yourself opportunity to be
recognized by local organizations, and you open the door for positive word-of-mouth
advertising. You may not make the big bucks off those original projects, but the outcome
will be worth it.
When starting your own firm, be sure to:
Market yourself
Hold yourself to high standards
Make sure you're doing it for the right reasons
Select your target market
Seek the help of advisers when needed
Hire the right employees
2. Cutting corners when preparing clients' taxes
As an accountant, it's important to set an honorable example for your clients, particularly
when dealing with tax preparation. Never advise clients against reporting cash sales or other
ethically questionable methods of avoiding taxes. Giving clients the green light in cutting
corners may simultaneously give them the green light in taking advantage of you or your
services. When you hold yourself to high standards, your customers will do the same.
3. Going in for the wrong reasons
Admittedly, there are lots of perks to owning your own business, including control over your
schedule, ability to pocket profits, and having control over the future and direction of your
business. However, be sure that you're not blindly opening your own firm to receive perks
that also come with grueling and time-consuming work. According to the Dun & Bradstreet
19th Annual Small Business Survey, 27 percent of people go into business because they're
tired of working for others. While this is an acceptable reason, be sure that you aren't simply
bitter toward an old boss or tired of your nine-to-five schedule. Undoubtedly, running your
own firm comes with challenges that shouldn't be overlooked.
4. Not selecting a target
When you start your own firm, it's important to decide what type of clients you'd like to
obtain. Many accountants make the mistake of showing off all of their specialties and
services to anyone who will listen. Granted, you should make clients aware of all your skills,
but be sure to develop a specialty or set of strengths. Then decide what segment you'd like
to target.
Do you excel at tax preparation? Consider targeting young adults who will need tax
preparation services for the first time. Then, on your website, include an exhaustive list of
your skills and services so that other potential customers can learn about your business.
5. Avoiding the help of other advisers
Accountants often act as advisers for business owners, homeowners, and real estate
property managers. However, that doesn't mean that CAs don't need their own set of
advisers. When opening your own firm, develop a team of advisers who can give you advice
and steer you in the right direction with your business. Potential advisers could include
other accountants, small business owners, information technology (IT) professionals,
bankers, attorneys, etc. Realize which areas you excel in and which areas you could use
professional guidance, then seek out those resources.
6. Not hiring the right team
Your employees are an incredibly integral ingredient to the success or failure of your
business. Employees should share your common goal, work hard, and believe in the future
of your firm. Whether it's a secretary or college intern, selecting the right employee is
crucial. The key to a good hire is having a large pool of potential candidates. You can never
over-advertise a job opening; the more good candidates who apply, the better chance you
stand of finding a suitable employee. Be picky and analyze candidates' resumes,
handshakes, clothing, communication skills, etc.
2. How to Start a Tax Consulting
Firm
Time for a career change? Maybe you should open a tax consulting firm. Our
guide will take you through the process step-by-step.
Wondering how to start a tax consulting firm? We take you step-by-step from
start to success.
(article continues below)
Creating Business Plans for a Tax Consulting Firm
Never underestimate the value of a good tax consulting firm business plan. If it's
sound, your business plan will keep you new venture on course and help you
avoid the pitfalls that plague other startup entrepreneurs.
To assist your efforts, you may want to consider enlisting the aid of
a professional business plan writer.
Time and time again, the best entrepreneurs we see rely on professionally
crafted plans to guide their decision making. However, outsourcing doesn't
completely eliminate your responsibilities in the writing process.
As the primary stakeholder in your tax consulting firm, you will intentionally need
to insert yourself in various stages of the plan's development.
Don't Overlook Competitors
Long before you open a tax consulting firm within your community, it's a smart
move to see how many competitors you have. Try our link below to get a list of
local competitors near you. After clicking on the link, type in your city, state and
zip code to get a list of tax consulting firms near you.
Locate Tax Consulting Firms Near You
Is the established competition doing a good job? It's important to understand their
strengths and weaknesses and think through how you'll stake up against those
established businesses.
Learn from Others Who Are Already In This Space
If you want to open a tax consulting firm be sure to have a conversation with
someone who is in the business. If you think owners of nearby tax consulting
firms will give you advice, think again. It'd be crazy for them to teach you the
business.
However, an entrepreneur who owns a tax consulting firm outside of your
community may be willing to share their entrepreneurial wisdom with you, given
that you don't compete with them in their area. Many business owners are happy
to give advice to new entrepreneurs It can take a while to find an entrepreneur
who is willing to talk, but it's well worth the effort.
How does one go about finding an entrepreneur who is running a tax consulting
firm in a different locale who can assist you?
We can help. Follow the link below, try a few city/state combos or zipcodes, and
then start calling!
Find Tax Consulting Firm Owners Who Might Advise You
Is It Easier to Buy an Existing Tax Consulting Firm?
Tough decisions are what business ownership is all about. And one of the first
decisions you'll have to make is whether to start a business from scratch or buy
an existing tax consulting firm.
In general, purchased tax consulting firms fare better than startups, at least
during the initial few years. Existing companies have an established customer
base, brand recognition and functional business models. More importantly,
buying an existing tax consulting firm makes it easier for you to begin collecting a
salary sooner rather than later.
Entrepreneurs who are committed to a highly unique value proposition may need
to pursue a startup approach. However, in today's business-for-sale marketplace,
there is an abundance of tax consulting firms worth considering.
Explore Franchising Options
Startup small business owners are at definite disadvantage compared to
entrepreneurs who buy an established operation.
To stack the odds in your favor, consider tapping into one of the many tax
consulting firm startup opportunities offered by leading brands and franchisors.
Proven franchises give startup business owners access to a turnkey business
concept. Instead of reinventing wheels, you can focus on growing your company
