After speaking with thousands of firm owners over the past few years, I’ve noticed that many of them started their firms without a clear idea of where they want it to go.
A good accounting firm business plan can solve that.
It can help you avoid common pitfalls like:
- Taking on bad clients
- Hiring team members who aren’t a good fit
- Becoming the bottleneck because everything bubbles up to you
This guide, complete with a free template, will show you how to create a business plan for your firm, so you can start strong.
Let’s go!
Table of Contents
Accounting Firm Business Plan (Free Template)
[Firm Name]
Accounting Firm Business Plan
Executive Summary
- Overview
[Firm Name] is an accounting firm located in [City, State/Region]. The firm will specialize in providing [list primary services, e.g., bookkeeping, tax preparation, financial planning] to [target market, e.g., small businesses, individuals]. [Firm Name]’s primary goal is to deliver [key service qualities, e.g., personalized, timely] accounting services that meet specific client needs. - Mission Statement
[Firm Name]’s mission is to provide [describe the purpose, e.g., high-quality, customized financial services] to help clients achieve [client goals, e.g., financial stability, regulatory compliance]. - Vision Statement
[Firm Name] aims to become [describe the long-term goal, e.g., the preferred accounting firm in a specific location, known for exceptional service and innovation] while supporting the financial growth of clients. - Key Objectives
Over the next three years, [Firm Name]’s primary goals are to [list goals, e.g., grow its client base by 20%, expand service offerings, establish a strong local presence, etc.].
Company Description
- Business Structure
[Firm Name] will operate as a [business structure, e.g., LLC, sole proprietorship, corporation], which provides [reasons for structure choice, e.g., tax benefits, flexibility]. - Ownership
The firm is owned by [Owner’s Name and any additional partners or stakeholders, with a brief description of roles and expertise]. - Location
[Firm Name]’s headquarters is located at [address or area].
Market Analysis
- Industry Overview
The accounting industry is currently [describe industry status, e.g., rapidly growing due to increased demand for financial services and virtual solutions]. This trend provides a favorable market for [Firm Name] to grow and serve an increasing number of clients. - Target Market
[Firm Name]’s target market includes [list target clients, e.g., small to medium-sized businesses, freelancers, or individuals]. These clients will benefit from [key services you offer to address their needs, e.g., cost-effective bookkeeping, accurate tax filing] that the firm will provide. - Market Needs
There is a significant need for [market needs, e.g., professional guidance on tax planning, efficient bookkeeping, and financial consulting] in the [specific market or industry]. [Firm Name]’s goal is to help clients in this market streamline their operations and stay compliant. - Competitive Analysis
In the [City/Region] area, [Firm Name] will compete with [list competitors or types of competitors]. The firm sets itself apart by [list unique selling points, e.g., providing specialized advisory services, offering competitive pricing, and building strong client relationships].
Services Offered
- Core Services
[Firm Name] will provide the following essential services: [list services, e.g., tax preparation, bookkeeping, payroll, and consulting]. - Specialized Services
[Firm Name] will also offer targeted services that include [list any specialized services, e.g., virtual CFO services, forensic accounting, tax audit representation]. These services will enable the firm to meet unique client needs and stand out in the market.
Marketing Strategy
- Brand Identity
[Firm Name] reflects [describe brand qualities, e.g., reliability, innovation, professionalism] and appeals to [target audience]. The firm’s messaging is focused on [list key brand messages, e.g., simplifying finances, providing expert support]. - Promotion Channels
[Firm Name] will promote its services through [list channels, e.g., social media, networking events, digital advertising, content marketing]. The firm’s marketing strategy will include [describe tactics for each channel, e.g., regular posts on LinkedIn, SEO-optimized blog content]. - Customer Retention
To maintain client relationships, [Firm Name] will employ strategies such as [list strategies, e.g., regular follow-ups, personalized check-ins, and seasonal promotions for returning clients]. Through these efforts, the firm aims to build lasting client trust and loyalty.
Operations Plan
- Daily Operations
Each day, [Firm Name] will perform tasks such as [list daily tasks, e.g., client consultations, data entry, tax filing]. Team members in the firm will follow standardized procedures to deliver all services accurately and efficiently. - Technology Utilization
[Firm Name] will utilize [list technology, e.g., accounting software, client management software, compliance tools] to streamline workflows, maintain compliance, and enhance productivity. - Team Structure
The [Firm Name] team will consist of the following departments and their respective members: [bullet list of departments, with team members and roles under each, e.g., Accounting: [list of roles], Administration: [list of roles], Marketing: [list of roles]]. Each department will play a vital role in providing excellent client service through their specific functions.
Management Team
- Key Personnel
[Firm Name]’s management team will consist of [introduce team members, e.g., CEO, CFO, Head of Client Services], each bringing valuable expertise and experience to drive the firm’s success. - Advisory Board (if applicable)
[Firm Name] will be supported by [areas of advisory, e.g., legal, financial] advisors who will provide insights and expertise to enhance the firm’s decision-making.
Financial Plan
- Startup Costs
Initial costs are estimated at [list estimate, e.g., $X for office setup, $X for technology and software]. These funds will support [purpose of costs, e.g., establishing our base operations, marketing efforts, etc]. - Revenue Streams
[Firm Name] will earn revenue primarily through [list revenue sources, e.g., bookkeeping services, tax consulting, financial planning]. - Financial Projections
[Firm Name] projects a first-year revenue of [amount] with an annual growth rate of [percent]%. Based on client acquisition and service demand, the anticipates positive cash flow by [projected month or year].
Sustainability and Growth Strategy
- Future Growth
[Firm Name]’s growth strategy includes expanding services into [list potential new areas, e.g., financial advisory, remote bookkeeping] and attracting clients in [specific new markets or regions]. - Client Satisfaction
[Firm Name] prioritizes client satisfaction through [list strategies, e.g., regular feedback, tailored services, ongoing support]. This approach will allow the firm to retain clients even as client needs change.
Appendix
[Attach additional documentation, e.g., financial projections, market research, team member resumes]
How to Write an Accounting Firm Business Plan
If you want to build a firm that provides both you and your team with a great lifestyle while providing great service to your clients – you need a clear vision of where you want to go.
Creating a business plan helps you establish that vision.
What Should You Include In An Accounting Firm Business Plan?
1. Executive Summary
Why It’s Important
This section provides a clear overview of your firm and your ultimate goals.
My Recommendations
A) Get Clear On Your “Why”
I often combine these into what I call a Why Statement.
Your Why Statement is the reason for your firm’s existence.
Make it short and sweet, and focus on how you will help others. As an example – when I ran my firm, my Why Statement was to “make accounting easy for small business owners.”
When I started my firm in 2013, there weren’t hardly any cloud accounting firms in existence.
So working with an accountant was a painful process. I wanted to solve that problem.
You can see my Why Statement on this screenshot of my old firm’s website.
My Why Statement was informed by the landscape of the industry at the time.
Yours may be too.
B) Design Your Business Goals To Support Your Personal Life
Your business’s goals should support your personal goals.
So, for example, if your personal goal is to work 10 hours per week and travel for 2 months of the year…
It may not be realistic to set a goal of reaching $15m in revenue within the next 3 years.
If, on the other hand, you’re not as concerned with work-life balance, and you’re willing to sacrifice significant amounts of free time to grow your business…
Then maybe a goal of $15m is ambitious – but not completely unrealistic.
Think about what you want your personal life to look like, then work backwards from there.
2. Company Description
Why It’s Important
This section is simple, but it’s good to have the reasons for your foundational decisions written down. 🙂
My Recommendation
I do not recommend using the traditional accounting firm structure.
I coach hundreds of firm owners all over the world in my Future Firm Accelerate program. And the busiest, most stressed out firm owners I speak with are often those following the partnership model.
When you set your firm up this way, all of the work will bubble up to you before it can go out the door.
It’s extremely challenging to scale using this model because, as the business grows, the amount of work the partner has to do grows, as well.
Instead, I recommend what I call a “Modern Accounting Firm Structure,” which looks like this:
The modern firm structure allows the firm owner (you!) to divest of functions you don’t enjoy or are not skilled in, which gives you more time to focus on your zone of genius – and reduces your stress and improves your lifestyle.
3. Market Analysis
Why It’s Important
As I mentioned, I started my firm, Xen Accounting, to give clients a better experience.
After doing a market analysis, I realized that traditional ways of running accounting firms were creating a gap between firm owners and clients, resulting in a bad experience for both parties.
This gave me the idea to start an online firm, at a time when no one was doing that, to solve those problems.
That’s what a good market analysis does — it shows you have a solid understanding of your industry and how to succeed in it.
It also helps you find ways to grow by spotting opportunities and challenges your firm might face.
My Recommendation
The starting point should be this:
What does the market currently find painful?
If you can solve some of these problems, you’ve probably answered an important market need and you can base your firm around this.
For instance, I identified that modern business owner in 2013 didn’t want to meet with their accountant in person.
So I created an online firm using Skype (yes, Skype) and other online tools.
Boom.
Instant clients because I made their lives easier than the typical firm 🙂
4. Services Offered
Why It’s Important
Check out the screenshot below.
This was one my more popular posts on LinkedIn, which tells me it resonated with people.
This section allows you to get clear on what you actually want to do, so you don’t fall into the trap of offering specific services just because you think you’re supposed to.
My Recommendations
A) Only Offer Services In Your Sweet Spot
If you don’t want to offer a certain service – don’t.
It’s okay to be a bookkeeping-only firm, an advisory-only firm, etc.
B) Use Tiered Packaging
I am a strong advocate of a tiered packaging and pricing structure.
See this example from Pilot:
There’s an entire blog post linked above about why I am a fan of tiered pricing, but the short version is this:
- It makes sales much easier, since clients have multiple options to choose from, rather than a binary “yes” or “no.”
- It allows you to land more clients, since you have multiple pricing options.
- You can often land clients at higher prices than you think. Tiered pricing allows you to price aggressively for your higher-level packages.
5. Marketing Strategy
Why It’s Important
You might not be excited about marketing, but it’s necessary for a healthy business.
Good marketing = consistent flow of quality leads = only working with ideal clients = easier & more streamlined business
Bad marketing (or no marketing) = very few leads = accepting bad-fit clients = more hassle & more difficulty streamlining your firm.
Back when I was running my firm, I had my fair share of marketing fails – unsuccessful cold outreach campaigns and failed Google Ads, to name a few.
Here’s my worst one ever:
I spent thousands of dollars promoting a giveaway for a chance to win 1 free year of accounting services for anyone who liked our Facebook page.
We generated 9 likes on the Facebook page.
I gave away 1 free year of services.
And the client left after that free year was up.
Bottom line:
Don’t try to be fancy with your marketing if you don’t know what you’re doing.
Listen to this podcast if you’d like to hear more about my failed marketing experiences. 🙃
My Recommendations
A) Get Clear On What Makes You Different
Here’s a template to help you do this:
We help [target audience] do [benefit they want] through [service you’ll provide].
As an example:
We help freelance creatives save on taxes and generate more predictable income through automated bookkeeping and hands-on advisory services.
B) Start With Email Marketing
I’m a big fan of email marketing for accounting firms.
On average, email marketing generates $36 for every $1 spent.
Here’s one of the quickest wins you can achieve when it comes to email marketing:
One of the smallest yet most impactful email marketing tactics I’ve used is the P.S. email signature.
It’s free advertising every time you’re speaking with someone over email. Best of all, it’s non-intrusive.
Here’s a simple template you can use (see the P.S.):
Go give it a try!
C) Don’t Jump Straight To Outsourcing
Many firm owners rush to outsource marketing, because they don’t enjoy it or want to learn how to do it themselves.
The problem is that, if they don’t know how to do the marketing themselves, they don’t know how to hold the agency they hire accountable.
So they end up getting held hostage by an agency that constantly tells them “these things take time…”
All the while generating zero results for the firm.
Only hire a marketing agency if you know how marketing works but don’t have time to handle the nitty-gritty yourself.
6. Operations Plan
Why It’s Important
A little planning here will save you a lot of headache, in a few specific ways:
- Daily Operations: A lot of firm owners don’t think about the fact that they’ll need to develop SOPs to ensure work is done to their standards. When you know exactly what you’ll offer, and who you’ll have on your team, developing SOPs becomes much simpler.
- Technology Utilization: Plan out your tech stack as early as possible. Some apps place nice together. Some don’t. When you know everything you’ll be using, and when you know it all integrates nicely, you’ll avoid some tech transition nightmares down the road.
- Team Structure: As mentioned earlier, I don’t recommend the “traditional” accounting firm structure. Set up your firm structure intentionally from the beginning, and you’ll save yourself a lot of evening and weekend time. 🙂
My Recommendations
When it comes to SOPs and technology, it’s easy to get lost in the weeds.
For SOPs, I recommend this method:
Join an accounting firm community and see what other members are using. It will save you tons of time and keep you from having to reinvent the wheel.
7. Management Team
Why It’s Important
Think of your management team like a puzzle.
Everyone fits together and brings something to the table that the others do not. That’s why they’re there, after all. 🙂
This section is a helpful thought exercise to identify where your management’s strengths & weaknesses lie.
My Recommendation
Every management team has weaknesses. Don’t hide from them.
In this section, call out your strengths, but also identify where you may need help in the future – and the type of person you may need to fill that gap.
As an example:
Since one of the key components of Future Firm Accelerate is member retention, I’ve worked with a consultant for multiple months in the past to help us increase member retention.
I didn’t have prior experience running a business like this, so I identified the gap and brought in experienced personnel to help.
You may find it helpful to do the same.
8. Financial Plan
Why It’s Important
Starting an accounting practice is scary.
But when you have a solid idea of your costs, revenue, and profit – you can plan ahead and increase the odds that your new business gets off the ground smoothly.
My Recommendations
- Aim for at least 50% gross margins in your projections. And at least 30% net margin. That could change depending on your reinvestment strategy.
- Check out Ignition’s Pricing Benchmark Report to get an idea of what other firms in your industry are charging.
- I strongly recommend value pricing (rather than fixed or hourly), which will have a huge positive impact on your margins, as indicated by one of our Future Firm Accelerate members below.
9. Sustainability and Growth Strategy
Why It’s Important
Most firms grow by taking on more clients and hiring junior team members to handle the work.
But if you have the wrong firm structure in place (the “traditional” firm structure I mentioned earlier), this will just lead to more work for you as the firm owner.
You become the bottleneck, and growth stalls until you can find a way to remove yourself from day-to-day work.
When you know how you’re planning to grow your firm, you can solve bottlenecks before they ever arise.
My Recommendations
A) Consider Hiring More Senior Earlier Than You Think
Bringing in a more experienced person allows you to step back without being pulled into every project.
I talked about this in detail in one of my podcast episodes.
Overall, hiring strategically from the beginning is one of the smartest moves you can make for your firm.
It frees you up to focus on growing your client base and improving your business — without burning yourself out in the process.
(Sidenote: This is much easier to do when you maximize your prices.)
B) Consider Increasing Price As A Growth Strategy
Growing your firm doesn’t necessarily mean adding more clients.
It means increasing revenue.
Adding clients is one way to do that, but it’s not the only way.
I find that most firm owners are underpricing themselves. When they increase their prices (often dramatically), they lose some clients, but the increased revenue more than makes up for it.
Then they have the bandwidth to bring in more new clients at their new (higher) prices.
… and sometimes most of the existing clients stick around anyway. 🙂
C) Don’t Get Distracted By Shiny Objects
Once you have your business plan set, stick to it.
I’ve worked with many firm owners who are doing well but still get caught up in “shiny object syndrome.”
They’re chasing one new tactic after another, rarely seeing the results they want, because they don’t stick with anything long enough.
Remember, there will always be something new – whether it’s new software, a new marketing tactic, etc.
If your goals are clear, stay focused on them and avoid anything that doesn’t make a big difference for your business.
Ready to Create Your Accounting Firm Business Plan?
There you have it!
I hope this guide and free template help you create a solid business plan for your accounting firm.
What section of the guide do you think will benefit your firm the most?
Which part of the business plan do you find most challenging?
Share your answers by commenting below. 🙂
