How to start Accounting business ?
Start-up cost : 100000 Rs – 300000 Rs.
Potential earnings : 600000 Rs – 1000000 Rs / P.A
Typical fees : 2000 Rs. and up per hour
Advertising : Membership and active participation in community groups, ads in newspapers and publications for local fundraisers, referrals, possibly your own Web site with tax preparation tips on it as a resource for potential new clients
Qualifications : CPA and some experience with services on which you choose to focus
Equipment needed : Office area, furniture, computer, suite software, printer, business cards, letterhead, envelopes, cell phone is optional but handy
Staff required : No
Hidden costs : Errors and omissions insurance, subscriptions and membership dues, continuing education
What You Do
This is a service that virtually everyone needs. The challenge is to show potential clients how you can improve their lives by helping them manage their financial affairs better. The two major approaches chosen by solo accountants are
(1) to work with individuals on tax issues and personal financial planning and
(2) to serve the burgeoning small business market with bookkeeping setup, payroll, tax planning, and all the other financial activities that an enterprise requires. You will need to be creative in distinguishing yourself from this rather crowded field. How are your accounting services better than those of the other accountants in town? How can you show an individual that you can serve him better than the big storefront operations that prepare taxes for low fees during the winter and early spring?
What You Need
Will you meet clients in your office, or will you travel to their homes or businesses? These decisions will control your start-up costs (which could be as little as $3,000).
Keys to Success
Being an excellent accountant and being able to create a profitable business are two different things. The people skills required have probably been completely neglected in your education and possibly in your experience if you have worked for a large firm. Gaining the confidence of potential clients is far more than simply having excellent accounting skills up your sleeve, which is why an informative company Web site might be advantageous for business-building, especially in the beginning. You’ll need to find a way to present your services in a way that appeals to people who want your help but don’t really understand how you can best help them find ways to save money. On the downside, your services will be particularly needed during peak tax preparation seasons; you’ll be busiest in December and March/April.
Expert Advice :
What sets your business apart from others like it ?
Personalized service and aff ordable rates are what set apart Kelly M. Zimmerman’s accounting business in Cuyahoga Falls, Ohio. “I take a genuine interest in my clients’ businesses. I really care about whether or not they succeed.”
Things you couldn’t do without
Zimmerman says she couldn’t do without a computer, telephone, and calculator.
“Get involved in an organization that you believe in personally and where you can also promote your business. Marketing for accountants is basically word-of-mouth, so be sure to do everything you can to keep your current clients happy. Th ey’ll send you more clients if they know you’ve gone out of your way for them.”
If you had to do it all over again . . .
“I would try to be more organized and focused on the types of clients I really want to serve.”