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5 Essential Factors When Starting Your Accounting Firm

By: Andrew Deen

 

The cat holds a notebook with a financial chart and a fan of dollars. The dog holds an accounting calculator. They stand hugging. White background. Isolated.

Starting any small business is no easy task, and many do fail. However, if the work is done, starting an accounting firm can be a very lucrative move, very quickly. With the boom of ecommerce even further boosted by the “stay at home” nature of the COVID pandemic, online accounting firms are building business at very rapid rates, and starting your own accounting firm doesn’t require a lot of capital, only a lot of work.

Here are 5 things to put in place when taking your accounting skills to the world of entrepreneurship.

Create Clear Goals

The first goal of your firm should be very big picture in the form of an overall purpose for making the decision to start your own firm. That purpose can be monetary, it can be to help people, it can be to have more control over your life, or a combination of the three and more, but regardless, having a true passion to pursue that goal can make or break your business, as times will surely get hard.

Short-term goals are also important, and you should celebrate any and all achievements, no matter how small. Before the business starts rolling, some of these short-term goals should include defining your market, determining what you major selling points are versus your competition, and networking with the businesses and individuals you believe to be in your target market.

Be Wary of the Vastness of the Digital World

If you’re planning on doing business online (which you should be), there are a couple of big picture things to keep in mind that can make your firm very appealing to businesses doing work in global markets. Cross-border business means more diversity in accounting practices, as well as in the individuals you may do business with.

Cultural awareness and workplace inclusion are not only good practices from a moral standpoint, but being able to respect and work with anyone and everyone gives your firm limitless opportunities for growth.

Become a Data Expert

Becoming, or hiring, a data expert can help your business with efficiency at every stage of development. When creating your business plan, proper utilization of data can save you countless hours on determining who your target market should be. When it comes time to actually run your business, maintaining client data can help you create more tailored messages and increase the depth of your relationship with a given client.

Become a Security Expert

With the data mentioned above very much included, your firm will be responsible for the safekeeping of many records, both internal and external. Cloud storage adds another level, and brushing up on your security practices is a must. Things like password changes and two-factor authentication are as important as they are simple, and if you plan on employing anyone, these individuals should know that security in a small business is everyone’s responsibility.

Include Your Clients

Nothing makes clients feel appreciated like asking them what you can do better to please them, and in addition to emails or calls asking just that, inviting them to more official events like advisory boards does your business good, twofold. First, the clients will undoubtedly appreciate your will to improve, and second, the feedback will, indeed, improve your company. Client feedback today leads to new clients tomorrow.

Stay Diligent

The most important part of running a successful business is working hard. Accounting tips aside, you must be prepared to accept failures and view them as opportunities to grow and not examples of your failures. In addition to working hard at your business, staying up to date on the ever-evolving small business technology options available to you mean opportunities to improve efficiency and have more time to focus on your clients’ needs.

Published: April 30, 2021
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Andrew Deen

Andrew Deen has been a consultant for startups in almost every industry from retail to medical devices and everything in between. He implements lean methodology and is currently writing a book about scaling up business. Twitter @AndrewDeen14.

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