So you’ve decided to open your own accounting firm. The accounting business is one of the most lucrative out there, in large part due to the fact that there will always be clients, no matter the state of the economy.
If you are interested in opening your own firm, it’s important to give yourself plenty of time to prepare. Before breaking ground on your firm, it’s important to understand the common mistakes related to such an endeavor.
Avoiding these pitfalls will put you a step ahead in the game and make those often rough first couple years smoother. Here are a few mistakes to avoid when getting your firm up and running.
Not Enough Investment
As with any business, the first few months to a year will be rocky without enough capital invested. Be sure that you have enough to keep your business running with no income for at least half a year.
If you don’t have the personal capital, you’ll need to consider using a lender. Whether you choose an angel investor from a site like or you’re hoping to garner a loan from the SBA, it’s important to consider your finances early on.
Forgoing Marketing
A modern business simply can’t forgo proper marketing. Decrease the likelihood of slow business by boosting your brand. The good news is, if you increase your marketing and you provide a good service, word will spread.
If marketing is not your forte, there are
plenty of seminars and classes out there for you to attend. Research closely and you will even find seminars designed for accountants and small business owners. Get the word out as soon as possible to prevent losing money and gain profit in the long-term.
Not Investing In A Website
Your website is going to be one of your strongest marketing strategies. Having a professional platform for potential clients to visit will build confidence and garner your brand a better reputation. Gone are the days when websites were optional; now it is a vital tool that you need to invest in now to benefit you in the long-term.
Make sure that your website stands out. It doesn’t need to be flashy, but a distinct personality should be present. Work with an excellent website creator who can capture your idea and maximize it with their own skills.
Make sure that it also includes links to social media accounts on every page. Also, preview your site and comb it for broken links and other flaws lest it causes your client to become disinterested.
Balling Too Low On Your Services
If you have participated in the accounting industry for a few years and you are venturing out on your own, don’t make the mistake of setting too low a price.
While it may be tempting to try to fish for as many clients as possible early on with low prices, it will make it difficult to maintain those clients once you raise them. Because your price would be below the norm, customers may not remain loyal.
Also, be wary of clients that try to haggle you to a lower price. Know the value of your service so clients know they are getting the most out of the price.
Unethical Practices
Don’t fall into the trap of cutting corners. Not only does that leave you liable to repercussions in the future, but you will risk legality issues and ruin the integrity of your business.
You and your team need, to be honest and have high standards so that everyone can profit. When hiring, vet your employees carefully, and be sure they follow an ethics code.
Failure To Brand Your Service
Not everyone who seeks an accountant knows what they are asking for. Unfortunately, they won’t know if you are what they’re looking for at all if you don’t describe yourself.
All it needs is to be a simple paragraph of around one hundred to two hundred words. A description of what you do is essential to pulling in and convincing clients, and it could be the most effective yet easiest task on your list.
There’s plenty of preparation work that goes into opening an accounting firm, and the sooner you get started, the better. Perhaps you haven’t yet achieved your CPA designation; study up with resources and give yourself the best chance of passing on your next attempt.
Maybe you don’t have the finances in order; consider small business loans and private investors that can give you the capital you need. Whatever it may be, using these guidelines can help you create a task list to get started on your dreams today.
