Starting An Accounting Practice: The Full 8-Step Process

Interested in starting your own accounting firm?

In this post, I’ll walk you through the 8 steps of starting an accounting practice to help you start off strong.

Let’s go!

Table of Contents

• Why Start an Accounting Practice?
• How To Start An Accounting Practice (8 Steps)
  • Step 1: Set up Your Business
  • Step 2: Identify Your Ideal Clients
  • Step 3: Create Standardized Packages That Serve Your Ideal Clients
  • Step 4: Decide on a Marketing Plan to Generate Leads
  • Step 5: Turn Those Leads Into Clients
  • Step 6: Onboard the Client
  • Step 7: Deliver the Work
  • Step 8: Continuously Improve as an Entrepreneur

Why Start an Accounting Practice?

There are plenty of reasons to start your own accounting firm. Here are a few:

More Freedom Over Your Schedule / Lifestyle

One of the primary benefits of owning your own accounting practice is the flexibility it can provide.

You can set your own hours, choose your clients, and create a work-life balance that suits your personal needs and goals – just like Katya, a member of my Future Firm Accelerate program.

In short, running your own practice, if done right, gives you much more control over your lifestyle than a full-time job ever could.

More Control Over Your Income

When you run your own firm, you gain a lot of control over how much you earn.

Unlike a traditional salary position where income can be fixed, running your own accounting practice allows you to directly influence your income and potentially earn more based on your business’s success.

Ability to Make a Bigger Difference for Clients

Unlike working for a firm, where you might feel like a cog in a machine, running your own firm allows you to work more closely with clients and make a much bigger impact on their businesses.

Do You Need to Be a CPA to Start an Accounting Firm?

This question often pops up for aspiring accountants who want to start their own practice.

The short answer is:

No. You don’t need a CPA license to run an accounting firm.

For example, Pilot is the largest startup-focused accounting firm in the U.S., yet it’s not a public accounting firm.

A non-CPA accountant can offer bookkeeping, tax preparation, accounting services, etc.

However, there are limitations, such as:

• Audits and reviews require a CPA license.
• Non-CPAs can perform compilations but cannot issue higher assurance reports.
• Complex tax services and IRS representation may require CPA status or specific credentials.

How To Start An Accounting Practice (8 Steps)

Without further ado, here are the 8 steps I recommend to ensure you’re setting the right foundation for your accounting practice.

Step 1: Set up Your Business

Choosing a name for your accounting practice is the first step in establishing your brand and setting the tone for your accounting practice.

While this is an important step, don’t get hung up here.

Pick a name you’re 80% happy with and move on.

Why 80%? 

If you wait to decide on a name you’re 100% happy with – you may end up spending weeks or months on this process, when really, it should take a couple of days… at the absolute most. ????

I recommend checking out this blog post if you’re looking for tips on what makes a great firm name, what pitfalls to avoid, and LOTS of name ideas. 

Next, decide on the appropriate business structure for your practice.

Depending on your country, the available structures may differ, so research local regulations.

Consider key factors like liability protection, tax implications, control over the business, and future growth potential. 

Additionally, ensure you’re complying with any legal requirements, such as registering your business and obtaining necessary licenses.

Also be sure to obtain the necessary insurance to protect your practice and clients.

Step 2: Identify Your Ideal Clients

If you want to have a scalable accounting practice, it’s not enough to just land ANY client.

Instead… 

It’s about choosing clients who are similar to one another, so it’s easier to systematize your work and delegate it to your future team.

This is where niching comes in.

By narrowing your focus to a specific industry or client type, you can develop specialized expertise, streamline processes, and deliver more value.

For example, take a look at how Bean Ninjas has leveraged this approach.

Start by identifying the characteristics of your ideal clients:

• Industries They’re In: What sectors do they operate within?
• Business Size: What is their revenue range and number of employees?
• Challenges: What problems and obstacles are they facing?
• Desired Outcomes: What goals are they aiming to achieve?

Focusing on these aspects will help you filter your client base and create a more targeted and effective accounting practice.

Remember, identifying your ideal clients isn’t a one-time task but an ongoing process.

For a deeper dive, check out my dedicated blog post on accounting niches.

Step 3: Create Standardized Packages That Serve Your Ideal Clients

Creating standardized packages for your clients makes a huge difference in how smoothly your firm runs.

Instead of presenting your services like this:

I recommend something like this: 

By grouping your services into clear, set packages, you simplify your operations and make it easier to put processes in place.

This approach helps you delegate tasks more efficiently and automate work, saving you time and effort.

If you’ve been following my content for some time, you know I’m a big fan of the three-tiered pricing strategy.

Why?

Because it works.

This method allows you to provide clear value to your clients and keep your practice running smoothly and consistently.

Check out this blog post if you’re interested in how to use tiered pricing to close more deals.

If you want my complete process for implementing tiered pricing – along with the scripts and templates I recommend to land new clients – check out my coaching program, Future Firm Accelerate.

Step 4: Decide on a Marketing Plan to Generate Leads

Now that you’ve laid the groundwork, it’s time to focus on how to attract clients.

Here’s how you can get started:

a. Create a website

Your website is often the first impression potential clients will have of your practice.

Here’s an example of what I consider a good accounting website.

To maximize your chances of turning visitors into clients, I recommend these seven strategies for an effective website:

1. Client-Centric Focus: Address your clients’ needs and challenges on your website. Highlight how your services improve their financial situations and tackle specific pain points.
2. Social Proof: Use client reviews, case studies, and success stories to build credibility and confidence.
3. Clear CTAs: Include prominent calls-to-action like “Get a Free Consultation” to encourage engagement and conversions.
4. Modern Design: A polished, contemporary design shows professionalism and leaves a lasting, positive impression.
5. Concise Messaging: Use clear, skimmable content to engage visitors who typically scan rather than read in detail.
6. Value Proposition: Clearly state what sets your firm apart on your homepage, so visitors quickly grasp the unique benefits of your services.
7. Structured Service Packages: We tackled this in Step 3. 🙂

If you’re looking for design ideas, I have compiled 40+ examples of well-designed accounting websites.

b. Pick 1-2 marketing strategies and use them to land clients

When it comes to marketing your accounting practice, I suggest focusing on a few key strategies that are most likely to resonate with your target audience.

Here are some recommendations:

1) Send a Curated Newsletter

A curated newsletter is a great way to build trust and keep in touch with both potential and existing clients.

Pick a consistent theme for your newsletter to set clear expectations, whether it’s weekly business tips or curated industry news.

For example, my Future Firm Newsletter features a weekly top 5, offering firm leaders insights on building modern, scalable firms.

2) Asking for Referrals

One of the most effective strategies is word-of-mouth marketing.

Asking for referrals can help you build a strong client base from the start and establish trust within your network.

Here’s how to do it:

• Timing Matters: Ask for referrals after a successful project or a great client interaction.
• Make It Easy: Provide tools like referral links, business cards, or a simple script to facilitate the process.
• Express Gratitude: Always thank clients for their referrals, no matter the outcome.
  

3) In-Person Networking

Networking is one of the fastest ways to get new clients for your accounting practice, especially when you’re just starting out and don’t have many clients yet. 

Early on, it’s crucial to land clients quickly, and in-person networking can be highly effective.

Here’s how to make the most of it:

• Attend the Right Events: The more targeted the event, the better your chances of connecting with the right people.
• Build Genuine Relationships: When you meet someone, listen actively and show genuine interest in what they do.
• Offer Value First: Instead of immediately pitching your services, think about how you can help the person you’re speaking with.
• Stay Consistent: Regularly attending events and staying in touch with your contacts helps you build a strong network over time, increasing your chances of landing new clients.

Networking isn’t just about meeting people — it’s about building relationships that can lead to long-term clients.

After meeting someone, follow up the next day to keep the relationship going. 

A simple, friendly email can go a long way in staying connected and turning those connections into clients.

Here’s a template you can swipe:

Check out my top recommended marketing strategies for accountants if you want to find out more tactics for your practice.

Step 5: Turn Those Leads Into Clients

Once you’ve generated leads through your marketing efforts, it’s time to convert them into paying clients.

a. Discovery Call

The discovery call is your chance to connect with potential clients and learn about their needs.

This initial conversation is your chance to build rapport and collect information to tailor your services. 

During the call, focus on three key aspects:

• Assess Scope of Work: Determine the client’s needs, the work required, and deadlines to outline your proposal and prevent scope creep.
• Assess Value: Identify the value you offer by understanding the client’s priorities, which helps set appropriate pricing.
• Assess Fit: Evaluate if you and the client are a good match by observing their personality and communication style, and watch for potential red flags.

b. Set your pricing for each tier

When setting your pricing, consider the following factors:

• Value Provided: Clients are generally willing to pay more for solutions that address significant pain points or deliver exceptional benefits.
• Pain Points: Understand the urgency and impact of the client’s problems. Clients facing pressing issues may be more inclined to pay higher prices for quick and effective solutions.
• Profit Margins: Aim for a profit margin of at least 50%. This ensures that your pricing is not only competitive but also sustainable for your business.

Based on your discovery call, estimate the highest price the client might be willing to pay for each service level. 

Determine the time and resources required to deliver each service, then compare these costs with your pricing to ensure they align with your desired profit margins.

While setting pricing involves some guesswork, practice will help you refine your approach and gain more confidence over time.

c. Present the options to the client

When presenting your pricing tiers, it’s best to do so on a call, rather than via email.

This allows you to answer any questions and address concerns immediately. 

I also recommend a tactic called price anchoring – which is when you present your most expensive option first to purposely induce some sticker shock.

Even Apple does this: 

Notice how the $1199 option is presented before the $999 and $799 options. ????

When you present your highest price option first, it makes the other options seem much more palatable.

You can use the same approach with your packages. 

When you present your pricing tiers, present your Gold tier first, and make sure it’s priced significantly higher than the Silver and Bronze options.

When done correctly, this will ensure clients view the latter two as more reasonable in comparison. 

d. Put an agreement in place

Once a client is ready to move forward, formalize the relationship with a clear agreement:

• Draft a Contract: Outline the scope of work, deliverables, timelines, and payment terms. Be transparent about fees and potential additional costs.
• Obtain Signatures: Get the necessary signatures to finalize the agreement and establish the partnership.
• Follow-up: Send a follow-up email thanking the client and outlining the next steps to reinforce your commitment and maintain momentum.

By managing the discovery call, setting the highest prices possible, presenting the client’s options strategically, and formalizing the agreement, you can smoothly convert leads into happy clients.

For additional tips, sample engagement letters, and other helpful resources, check out our Accounting Engagement Letter blog post.

If you need help on coming up with an

Step 6: Onboard the Client

Onboarding a new client is a critical phase that could very well set the tone for your entire relationship.

To ensure a smooth and effective onboarding process, follow these four steps:

1. Send a Welcome Email

Your first point of contact after sealing the deal is the welcome email, and it’s essential to get it right. Here’s how to craft an effective welcome email:

• Promptness: Send the email immediately after the agreement is signed. This shows your client that you are organized and ready to start.
• Congratulate the Client: Reassure them that they made an excellent choice by choosing your firm. This positive reinforcement builds their confidence in your services.
• Provide a Checklist: Include a link to a checklist of items they need to complete before you can get started.
• Utilize Project Management Tools: Consider inviting them to your project management system and setting up a task list for them.
• Outline Next Steps: Clearly communicate what they can expect moving forward, giving them a glimpse of your game plan.

2. Complete Your Onboarding Tasks

Here’s what to focus on:

• Set Up in Your System: Input all necessary information into your systems, including invoicing, billing, and the tasks you agreed upon.
• Collect Required Documents: Gather all essential documents, such as bank statements or previous tax returns, to ensure everything is in order before commencing work.
• Avoid Starting Work Prematurely: Make sure that the client is fully set up in your system before you begin any actual work. This helps prevent confusion and ensures a smooth workflow.

3. Schedule a Knowledge Transfer with Your Team

As the person who closed the deal, you hold valuable information about the client. 

I recommend recording an overview video (my Future Firm team and I use Loom) to ensure that everyone is on the same page and that the client doesn’t have to repeat information they’ve already shared.

4. Schedule a Kick-Off Call

The kick-off call is a crucial step in the onboarding process, marking the official hand-off from you to your team. Here’s how to make the most of this call:

• Clarify Roles: Make it clear to the client that, from this point forward, your team will handle the work and communications.
• Set Expectations: Discuss what the client can expect in terms of timelines, deliverables, and communication methods.
• Outline Next Steps: Provide a roadmap for the next stages of the process, ensuring the client feels informed and engaged.
• Utilize Help Desk Software: Consider using help desk software to streamline communication and make the transition smoother for your clients.

A successful onboarding means your client feels welcomed, informed, and confident in their choice to work with you, so it’s essential to get it right.

Step 7: Deliver the Work

Your ultimate goal as an accounting firm owner is to provide high-quality work to your clients.

To ensure streamlined work delivery, two key elements are crucial:

a. Documented Processes

When you document your processes, you can delegate work more easily and complete tasks more efficiently. 

Here’s a four-step process to streamline and document all processes in your firm:

Step 1: Write down a list of all recurring tasks

Start by creating a comprehensive list of all recurring tasks in your firm. This could include tasks such as tax preparation, bookkeeping, or client reporting.

Step 2: Prioritize the Tasks in Order of Importance

Prioritize the tasks based on their importance and impact on your firm’s operations. Focus on the most critical tasks first.

Step 3: Document the Task Step-by-Step

The simplest way to do this is to use Loom.

If you’ve read my previous blog posts, you know this is one of my top tools at Future Firm.

Loom allows you to record your screen and voice, making it simple to capture the entire process visually and audibly. 

Next time you tackle a prioritized task, try these steps:

• Open Loom: Launch the Loom app.
• Record Your Process: Start recording as you work through the task. Talk through each step, explaining what you’re doing and why.
• Save and Share: Save the recording when you’re done. Share the link with your team or keep it for your own reference.

You can also use Loom + ChatGPT to quickly create SOPs.

Here’s an old Loom video I shared with my email list detailing how to do this:

Step 4: Outsource Process Documentation

As a firm owner, you may not have the time or inclination to work on process improvement.

However, it’s a vital part of your business that often gets overlooked. 

To overcome this challenge, consider outsourcing process documentation to a COO, virtual assistant, or fractional COO. 

In other words, don’t do it all by yourself. 🙂

b. Back those processes with technology

Implementing the right technology can significantly enhance the efficiency of your documented processes. 

Here are a few examples of practice management software that can support your work delivery:

Teamwork: A project management tool that helps you organize tasks, track progress, and collaborate with your team. This is the one my Future Firm team also uses.

Karbon: An all-in-one platform for managing client work, communication, and team collaboration.

Canopy: A comprehensive suite of tools for practice management, client portals, and tax preparation.

Remember, investing time and resources into process improvement will pay dividends in the long run, allowing your firm to scale efficiently.

Step 8: Continuously Improve as an Entrepreneur

Let’s face it: good accountants often struggle as business owners. 

Why? 

Because they tend to overthink and overcalculate everything. 

That careful, detail-oriented mindset that makes you a great accountant can sometimes hold you back from being the entrepreneur you want to be.

Often, there are hidden roadblocks that you might not even realize are there.

After scaling and selling my own accounting firm in just 5 years, I’ve identified those roadblocks and created a step-by-step plan to help you avoid them in my coaching program, Future Firm Accelerate. 

I also offer some fantastic free resources that can help you manage your accounting practice:

Future Firm Accounting Podcast: Tune in for bite-sized episodes (usually 7 minutes or less) packed with insights and tips to help you grow your firm. It’s a great way to learn while you’re on the go!

Future Firm Newsletter: My newsletter provides 2 short weekly emails filled with the strategies you need to scale your firm without sacrificing your nights or weekends.

Ready To Start Your Accounting Practice?

Starting your own accounting practice can be daunting, but it also offers you the freedom to shape your career and truly help your clients. 

The groundwork you lay today will set you up for future success, so it’s essential that you don’t overlook any details or rush the whole process.

What’s the one thing you’re most excited about in running your own practice?

Which step are you most concerned about?

Share your thoughts by commenting below!