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Accounting Business Plan Template

Written by Dave Lavinsky

Accounting Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their accounting firms. 

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an accounting business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is an Accounting Business Plan?

A business plan provides a snapshot of your accounting business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Accounting Firm

If you’re looking to start an accounting firm or grow your existing accounting business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your accounting business to improve your chances of success. Your accounting business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Accounting Firms

With regards to funding, the main sources of funding for an accounting firm are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for accounting firms.

Finish Your Business Plan Today!

How to write a business plan for an accounting firm.

If you want to start an accounting business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your accounting business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of accounting business you are running and the status. For example, are you a startup, do you have an accounting business that you would like to grow, or are you operating an established accounting business you would like to sell? 

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the accounting industry. 
• Discuss the type of accounting business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of accounting business you are operating.

For example, you might specialize in one of the following types of accounting firms:

• Full Service Accounting Firm: Offers a wide range of accounting services. 
• Bookkeeping Firm: Typically serves small business clients by maintaining their company finances. 
• Tax Firm: Offers tax accounting services for businesses and individuals. 
• Audit Firm: Offers auditing services for companies, organizations, and individuals. 

In addition to explaining the type of accounting business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, or the amount of revenue earned. 
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the accounting industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the accounting industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your accounting business plan:

• How big is the accounting industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your accounting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your accounting business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, organizations, government entities, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of accounting business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r accounting firms. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes CPAs, other accounting service providers, or bookkeeping firms. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of accounting business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for multiple customer segments?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a accounting business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f accounting company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide auditing services, tax accounting, bookkeeping, or risk accounting services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your accounting company. Document where your company is situated and mention how the site will impact your success. For example, is your accounting business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your accounting marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your accounting business, including answering calls, scheduling meetings with clients, billing and collecting payments, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your accounting business to a new city.  

Management Team

To demonstrate your accounting business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing accounting businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an accounting business or bookkeeping firm.   

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 clients per day, and/or offer discounts for referrals ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your accounting business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a accounting business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of your most prominent clients.    Summary Writing a business plan for your accounting business is a worthwhile endeavor. If you follow the accounting business plan example above, by the time you are done, you will truly be an expert. You will understand the accounting industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful accounting business.  

Accounting Business Plan Template FAQs

What is the easiest way to complete my accounting business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your accounting business plan.

How Do You Start an Accounting Business?

Starting an accounting business is easy with these 14 steps:

• Choose the Name for Your Accounting Business
• Create Your Accounting Business Plan
• Choose the Legal Structure for Your Accounting Business
• Secure Startup Funding for Your Accounting Business (If Needed)
• Secure a Location for Your Business
• Register Your Accounting Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Accounting Business
• Buy or Lease the Right Accounting Business Equipment
• Develop Your Accounting Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Accounting Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Accounting business plan?

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.   Other Helpful Business Plan Articles & Templates

Accounting Business Plan Template

Written by Dave Lavinsky

Accounting Business Plan

You’ve come to the right place to create your Accounting business plan.

We have helped over 5,000 entrepreneurs and business owners create business accounting plans and many have used them to start or grow their accounting firms.

Below is a template to help you create each section of your Accounting business plan.

Executive Summary

Business overview.

DeSanta & Co is a new accounting firm located in Indianapolis, Indiana. We provide a full suite of accounting services to local businesses, including bookkeeping, accounting, and tax services. Our combined decades of expertise and client-focused service ensures that we will become the #1 accounting firm in the next five years.

DeSanta & Co is run by Michael DeSanta. Michael has decades of accounting experience and has gained a loyal clientbase from providing his services through competing firms. His expertise, reputation, and loyal clientbase will ensure that our firm is successful.

Product Offering

DeSanta & Co will offer its clients a full suite of accounting services. These services include bookkeeping, accounting, tax services, and auditing. The company will employ a large and diverse staff of professional accountants to ensure we can offer as many services as possible.

Customer Focus

DeSanta & Co will serve small and medium-sized businesses located in the Indianapolis, Indiana area. Most of these businesses will have less than 1000 employees and earn a revenue less than $10 million per year. We will also offer limited services to individuals, such as tax prep and help.

Management Team

DeSanta & Co’s most valuable asset is the expertise and experience of its founder, Michael DeSanta. Michael has been a certified public accountant (CPA) for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to DeSanta & Co once the company is established and running. Michael’s combination of skills, accounting knowledge, and loyal following will ensure that DeSanta & Co is a successful firm.

Success Factors

DeSanta & Co will be able to achieve success by offering the following competitive advantages:

• Michael DeSanta will initially help the clientbase that he has built carefully over the past twenty years.
• The company will emphasize providing client-focused service so that our clients feel valued.
• The company will provide our accounting services at an affordable rate.

Financial Highlights

DeSanta & Co is currently seeking $400,000 to launch. The funding will be dedicated to the office build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Office design/build: $100,000
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for DeSanta & Co.

Company Overview

Who is desanta & co.

DeSanta & Co is a new accounting firm located in Indianapolis, Indiana that provides local businesses with a full suite of accounting services. We are a small firm but have considerable experience, so we can offer better quality of services than our competition. We expect that our most popular services will include bookkeeping, accounting, and tax services. Our combined decades of expertise and client-focused service ensures that we will become the #1 accounting firm in the next five years.

  DeSanta & Co is run by Michael DeSanta. Michael has decades of accounting experience and has gained a loyal clientbase from providing his services through competing firms. After working for several accounting firms around town, he surveyed his clientbase to see if they would be willing to switch to his new company once launched. Most of his clients responded positively, which motivated Michael to finally launch his business.

DeSanta & Co History

Upon surveying his clientbase and finding a potential office, Michael DeSanta incorporated DeSanta & Co as an S-Corporation in April 2023.

The business is currently being run out of Michael’s home office, but once the lease on DeSanta & Co’s office location is finalized, all operations will be run from there.

Since incorporation, DeSanta & Co has achieved the following milestones:

• Found an office space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

DeSanta & Co Services

DeSanta & Co will provide the following services to its clients:

• Bookkeeping
• Tax services
• Advisory services
• Investment services
• Management consulting
• Valuation and planning

Industry Analysis

The accounting industry is essential to the success of other businesses and industries. Accountants record and track financial transactions, which helps businesses ensure they are making a profit. As such, accounting services are always in demand and the industry often sees great growth.

There are several essential services that accounting firms can provide to businesses and individuals. The most popular services include bookkeeping, tax services, advisory services, and valuation and planning. Though most businesses employ their own accountants, many businesses are switching to hiring accounting firms to save on costs.

The accounting industry is expected to grow over the next several years. According to The Business Research Company, the accounting industry is expected to grow at a CAGR of 4.2% from now until 2027. This growth is due to the increasing demand for accountants worldwide. This increase in demand and industry growth ensures that DeSanta & Co will achieve success.

Customer Analysis

Demographic profile of target market, customer segmentation.

DeSanta & Co will primarily target the following customer profiles:

• Local small businesses
• Medium-sized businesses
• Individuals

Competitive Analysis

Direct and indirect competitors.

DeSanta & Co will face competition from other companies with similar business profiles. A description of each competitor company is below.

Perkins & Smith

Perkins & Smith is a small accounting firm that has intentionally remained small so that they can have stronger relationships with their clients. Since they opened in 1960, Perkins & Smith has been one of the leading accounting firms in the Four State Region. They offer a wide range of services including accounting, bookkeeping, payroll services, tax prep and planning, and advisory services. They have built up a loyal clientele and maintained a strong, positive reputation since their opening decades ago.

Premiere Accounting

Premiere Accounting is a large accounting firm that specializes in helping large businesses with accounting, taxes, and similar services. Since opening in 1995, they have acquired a loyal client base, including several multi-billion dollar companies. They employ over a hundred professionals who all have diverse backgrounds. This helps serve their diverse clientele and ensures they are meeting the specific needs of every business that works with them.

Jackson Brothers Accounting

Jackson Brothers Accounting is a privately held accountant practice that has been popular in the area since 1985. They offer a wide variety of services including, tax planning and preparation, payroll processing, financial planning, and small business accounting. Though they are open to helping nearly all businesses and sectors, they primarily focus on local small businesses and startups.

Competitive Advantage

DeSanta & Co will be able to offer the following advantages over the competition:

• Client-oriented service : DeSanta & Co will put a focus on customer service and maintaining long-term relationships. We aim to be the best accounting firm in the area by catering to our customer’s needs and developing a strong connection with them.
• Management : Michael has been extremely successful working in the accounting sector and will be able to use his previous experience to help his clients better than the competition.
• Relationships : Having lived in the community for 25 years, Michael DeSanta knows many of the local leaders, newspapers and other influences.

Marketing Plan

Brand & value proposition.

DeSanta & Co will offer a unique value proposition to its clientele:

• Client-focused financial services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for DeSanta & Co is as follows:

Targeted Cold Calls

DeSanta & Co will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting individuals in areas and occupations that are most likely to need accounting services. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

DeSanta & Co understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

DeSanta & Co will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

DeSanta & Co will invest heavily in developing a professional website that displays all of the company’s services. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.

The fees and hourly pricing of DeSanta & Co will be moderate and competitive so clients feel they are receiving great value when utilizing our accounting services.

Operations Plan

The following will be the operations plan for DeSanta & Co. Operation Functions:

• Michael DeSanta will be the Owner of DeSanta & Co. In addition to providing accounting services, he will also manage the general operations of the business.
• Michael DeSanta is joined by a full-time administrative assistant, Jessica Baker, who will take charge of the administrative tasks for the company. She will also be available to answer client questions and will be the primary employee in charge of client communications.
• As the company builds its client base, Michael will hire more accounting professionals to provide the company’s services, attract more clients, and grow our business further.

Milestones:

DeSanta & Co will have the following milestones completed in the next six months.

• 6/2023 Finalize lease agreement
• 7/2023 Design and build out DeSanta & Co
• 8/2023 Hire and train initial staff
• 9/2023 Kickoff of promotional campaign
• 10/2023 Launch DeSanta & Co
• 11/2023 Reach break-even

Though he has never run his own business, Michael DeSanta has worked as an accountant long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting client base that he served while working for other accounting firms. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

DeSanta & Co’s revenues will primarily come from charging clients for the accounting services we provide. We will charge our clients an hourly rate that will vary depending on the services they need.

The notable cost drivers for the company will include labor expenses, overhead, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of clients:
• Year 4: 100
• Year 5: 125
• Annual Rent: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, accounting business plan faqs, what is an accounting business plan.

An accounting business plan is a plan to start and/or grow your accounting business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Accounting business plan using our Accounting Business Plan Template here .

What are the Main Types of Accounting Businesses? 

There are a number of different kinds of accounting businesses , some examples include: Full Service Accounting Firm, Bookkeeping Firm, Tax Firm, and Audit Firm.

How Do You Get Funding for Your Accounting Business Plan?

Accounting businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Accounting Business?

Starting an accounting business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Accounting Business Plan - The first step in starting a business is to create a detailed accounting business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your accounting business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your accounting business is in compliance with local laws.

3. Register Your Accounting Business - Once you have chosen a legal structure, the next step is to register your accounting business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your accounting business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Accounting Equipment & Supplies - In order to start your accounting business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your accounting business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful accounting business:

• How to Start an Accounting Business

Business Plan Template for Accountants

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As an accountant, staying organized and having a clear roadmap for your business is crucial to your success. That's where ClickUp's Business Plan Template for Accountants comes in handy!

Our template is specifically designed for accounting firms and individual accountants, helping you outline your goals, strategies, and financial projections all in one place. With this template, you can effectively manage your practice, attract clients, and even secure funding if needed.

Here's how ClickUp's Business Plan Template for Accountants can benefit you:

• Clearly define your business goals and strategies for growth
• Outline your financial projections and track your progress
• Stay organized and easily collaborate with your team or stakeholders

Don't let the burden of business planning hold you back. Try ClickUp's Business Plan Template for Accountants today and take your accounting practice to new heights!

Business Plan Template for Accountants Benefits

When using the Business Plan Template for Accountants, you can enjoy the following benefits:

• Clear roadmap: Outline your goals, strategies, and action plans to stay focused and aligned with your vision.
• Financial projections: Create realistic and data-driven projections to monitor your firm's financial health and make informed decisions.
• Attract clients: Showcase your expertise, services, and unique value proposition to attract potential clients and stand out from competitors.
• Secure funding: With a comprehensive business plan, you'll have a better chance of securing funding from investors or financial institutions.
• Practice management: Streamline your operations, set clear objectives, and track progress to effectively manage your accounting practice.

Main Elements of Accountants Business Plan Template

ClickUp’s Business Plan Template for Accountants is a comprehensive tool that helps accounting firms or individual accountants efficiently manage their practice, attract clients, and secure funding. Here are the main elements of this template:

• Custom Statuses: Track the progress of each section of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Add important details to your business plan, including references, approval status, and section categorization, using custom fields like Reference, Approved, and Section.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to easily navigate and organize your business plan.
• Collaboration Tools: Utilize ClickUp's collaborative features such as document sharing, commenting, and task assignment to work seamlessly with your team members.
• Integration: Connect ClickUp with other essential tools like accounting software, CRM, and project management platforms to streamline your workflow and enhance productivity.

How To Use Business Plan Template for Accountants

If you're an accountant looking to create a comprehensive business plan, ClickUp's Business Plan Template for Accountants can be a valuable tool. Follow these five steps to make the most of this template and develop a robust plan for your accounting firm.

1. Define your business objectives

Start by clearly outlining the objectives of your accounting firm. Consider what you want to achieve in terms of growth, revenue, client acquisition, and service offerings. This will provide a roadmap for your business plan and help you stay focused on your goals.

Use the Goals feature in ClickUp to set specific, measurable, achievable, relevant, and time-bound (SMART) objectives for your accounting firm.

2. Conduct a market analysis

Understand your target market and your competitors. Identify the needs and pain points of your potential clients, and assess the competitive landscape in your industry. This analysis will help you position your accounting firm effectively and identify opportunities for growth.

Use the Table view in ClickUp to organize and analyze market research data, competitor information, and client insights.

3. Develop your service offerings

Based on your market analysis and client needs, determine the range of services you will offer as an accounting firm. This could include tax planning and preparation, bookkeeping, financial statement analysis, payroll services, or business consulting. Clearly define each service, its benefits, and how it aligns with your clients' needs.

Create tasks in ClickUp to outline and define each service offering, including pricing, deliverables, and timelines.

4. Define your marketing and sales strategy

Outline how you will attract and acquire clients for your accounting firm. This may involve digital marketing, networking events, referrals, or partnerships with other professionals. Identify the key marketing channels you will leverage and develop a sales strategy to convert prospects into clients.

Use the Automations feature in ClickUp to automate repetitive marketing tasks, such as email campaigns or social media scheduling.

5. Set financial goals and projections

Finally, set financial goals for your accounting firm and create projections for revenue, expenses, and profitability. Consider factors like pricing, client retention, and growth potential. Develop a budget and financial plan that aligns with your objectives and provides a clear path to financial success.

Use the Dashboards feature in ClickUp to track and visualize your financial goals and projections, monitoring key metrics like revenue, expenses, and profit margins.

By following these five steps and utilizing ClickUp's Business Plan Template for Accountants, you can create a comprehensive and strategic business plan for your accounting firm. With a well-defined roadmap in place, you'll be better equipped to achieve your business objectives and thrive in the competitive accounting industry.

Get Started with ClickUp’s Business Plan Template for Accountants

Accounting firms or individual accountants can use the ClickUp Business Plan Template to effectively manage their practice, attract clients, and secure funding.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize different sections of your business plan, such as Executive Summary, Financial Projections, and Marketing Strategy
• The Status View will help you keep track of the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• Use the Timeline View to set deadlines and milestones for each section of your business plan
• The Business Plan View will give you an overview of your entire plan, allowing you to easily navigate between sections
• The Getting Started Guide View will provide you with step-by-step instructions on how to use the template and create a successful business plan
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional information and track important details
• Update statuses and custom fields as you work on each section to keep team members informed and ensure progress is on track
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Free Accounting and Bookkeeping Sample Business Plan PDF

1 min. read

Updated February 26, 2024

Looking for a free, downloadable accounting and bookkeeping sample business plan PDF to help you create a business plan of your own? Bplans has you covered. 

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching a larger accounting business in a bustling city or a smaller neighborhood office, the details will be different, but the bones of the plan will be the same. 

Are you writing a business plan for your accounting firm because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company. 

No two accounting businesses are alike. Your strategy will be different if you’re partnering with other CPAs, rather than working independently, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success. 

• What should you include in an accounting and bookkeeping business plan?

Your accounting business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products and services, marketing plan, management team, financial plan, and appendix. 

One of the things that makes an accounting business plan different than some other service-based business plans is that you might decide to only work with businesses and not with individuals.  

You may offer different tiers of service to different types of clients. If that’s the case, make sure you include ideas like up-selling small businesses from hourly consultation to quarter contracts.

Download this accounting and bookkeeping sample business plan PDF for free right now, or visit Bplans’ gallery of more than 550 sample business plans if you want more options.

There are plenty of reasons accounting business owners can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

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How to start an accounting firm: Your checklist for successfully starting a firm

So, you're thinking of starting an accounting firm.

That's great. No doubt you have plenty of questions about how to set up a new firm and get off to a great start.

Thomson Reuters spoke with some of our industry experts to get answers to the big questions you may have.

Here's what they told us.    

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Starting your own accounting business sounds like a lot of work. Why would I want to start an accounting firm?   

Starting an accounting firm is like starting any small business – it requires a lot of work. However, industry and consulting firms list accounting firms as one of the single most profitable small businesses a person can start right now.

Here are a few questions to consider when starting a firm:

• Do you want to be a cog in the machine or own a firm? Frankly, there isn’t a wrong answer to this question, but rather a preference. However, going out on your own comes with one significant benefit: you’re getting the profit from the firm, not just your wages. You go from employee to owner.
• What’s my business purpose? While perhaps a bit esoteric, defining your business’s purpose is crucial. Why am I doing this? What’s my goal behind this? It’s not just a philosophical exercise. Knowing why you’re starting a firm can help you define your target market, whether it’s helping small businesses, real estate, or another service area.
• Do you want to be nimble and cutting edge? Small firms tend to be much more agile and have a greater ability to do new things. From adopting new technology to discovering and implementing new software or other efficiency creating tools, running your own firm lets you make the decisions about what makes your business unique—and profitable.
• Should you start a legal entity? For some, a sole proprietorship won’t require incorporation – especially if the work is centered around less complex tasks such as basic tax preparation. However, there are certain liability protections by becoming an LLC, including limiting risk for your business. Assets become owned by your business and are distinguished from personal assets. When a business is not incorporated, it becomes harder to draw that line and the entire enterprise becomes at risk.

What are the requirements to open an accounting firm? What do I need?

Starting an accounting firm is no different from starting any other small business. And while there are accounting-specific requirements, it’s important to remember that you’re starting a business first.

Start by figuring out your purpose, goal, and market. This will influence many other decisions, including the function of the services you provide, whether you want a physical or virtual location, your target demographic, and the location of your business.

Once you’ve selected a location and determined your goals, it’s time to consider the nuts and bolts of owning a business.

You’ll need to:

• Obtain Employer Identification Number (EIN) and Tax ID number
• Investigate employment laws
• Determine startup costs
• Develop a pricing structure for services
• Decide on the legal structure of your business (S-Corp, L-Corp, LLC, Partnership, LLP )
• Look at business insurance
• Create a business bank account
• Develop internal policies and rules
• Hire employees

Additionally, you’ll have to think about the day-to-day needs of running a business, including managing risk, basic administrative tasks, and general questions of how and where you will meet clients. 

Will I need to get a new EIN from the federal government ?

In most cases, owning and running an accounting firm necessitates an Employer Identification Number (EIN). However, the IRS website provides an in-depth explanation of who is required to have an EIN and when. A good rule of thumb is: if you plan on hiring employees – or plan to in the future – you’ll probably need an EIN.

That said, even if you don’t think you need one – or the website says it isn’t a requirement– most businesses are probably better off acquiring an EIN.

Luckily, the online process is fast, easy, and free. 

If I’m not a Certified Public Accountant, do I need a CPA to open an accounting firm ?

It depends.

While all CPAs are accountants, not all accountants are CPAs. There are differences between the two, including education, experience, and certain opportunities. However, the answer goes back to the question, “What services do you want to offer?”

An accounting firm can do almost everything a CPA firm can do with one exception – audits and assurance services. So, if that is a part of your goals or your target market, then it’s probably wise to think about the steps needed to become a CPA.

However, if you are looking to focus on the multitude of other services accounting firms provide, it’s likely not a necessary credential to start. And while there are certain state-by-state exceptions about what can and cannot be undertaken by a CPA, they are not a requirement for starting an accounting firm.

However, if you want to call yourself a “CPA firm” – you will need a CPA.

Can accountants work from home ?

One of the benefits of starting an accounting firm is flexibility. So, the simple answer to the question is, yes—many accountants can and do work from a home office.

All the regulations that apply to a physical location also apply to virtual or home offices. So not having a physical office does not put an accounting firm at a disadvantage.

In fact, working from home is even easier with modern technology and software solutions that help bring vital aspects of your daily workflow into one dedicated (and usually online) space. For instance, Thomson Reuters makes its CS Professional Suite of tax and accounting software available as hosted online solutions and designed its Onvio products to run entirely in the cloud.

It’s important to note: an accounting firm must have a dedicated EFIN (Electronic Filing Identification Number) for every separate location where they perform work. So, if you have a physical location and do work in a home office, you’ll need to investigate whether you’ll need a separate EFIN for home office.

The answer largely depends on how much – and the extent of the work – you do from home. Check with the IRS for further guidance. 

If I’d prefer a home-based accounting business, what should I know about starting an accounting firm from home ?

Luckily, accounting firms don’t need a physical space to operate successfully. And like the traditional brick and mortar approach, having a home-based or virtual business brings both opportunities and challenges that are unique to that approach. When considering a home-based business, it’s important to think about the unique challenges and opportunities involved.

These include:

• Shared work locations. There are many co-working locations across the country, many of which include both space for professionals to perform their tasks, as well as providing a professional, on-demand space to meet with clients. While there is usually a monthly fee to use these spaces, the benefits they provide are often worth the cost (and are significantly cheaper than leasing or purchasing office space).
• Low costs. New businesses often struggle with overhead. As you build your client list, keeping costs low is a priority. Not only does it allow you to see a profit early, but it also allows you to adjust your service menu to attract clients with lower-than-normal prices.
• Liability issues. If you choose to meet clients in your home, liability and zoning can be an issue. If a client gets hurt inside your home office, or falls outside of it, it’s important to know the laws surrounding liability.
• Zoning laws. Most cities and counties have zoning regulations. Make sure you investigate and comply with any laws to ensure your home-based business isn’t operating illegally.
• Turn limitations into unique opportunities. While not having a physical space can be challenging at times, it can also be an advantage. Consider visiting clients onsite. Not only does it solve space concerns, it communicates a message to the client—you offer a higher level of service.    

What are the key services offered by accounting firm s? 

In many ways, this question can be answered by once again looking at your goals and target market. What are the key services needed by that population? How can you serve them better? Still, while many services will be dictated by the specifics of your clients and their business, there are a few standards most accounting firms offer, including:

• Assurance services
• Bookkeeping

While these are typically the core offerings – and the ones that will provide consistent business in most accounting firms – it’s also important to investigate emerging and buzz-worthy services that are attracting bigger and more progressive accounting businesses.

From consulting and advising to outsourced CFO services (serving as the embedded strategic financial decision-maker for a client), taking a cue from the bigger firms – and anticipating what trends might trickle down to smaller and independent businesses – can increase the clients you serve and put you steps ahead of your competition. 

What should I know about running an accounting firm ?

Starting a business is filled with new and challenging decisions. However, once the business is up and running, it’s common to be unprepared for typical day-to-day operations. Anticipating (and planning for) these concerns helps make sure you’re working as efficiently as possible.

Common questions and concerns include:

• Talent acquisition and development. Frankly, finding and keeping staff is a significant challenge, which is why hiring always leads industry surveys about common needs and concerns. Even if you aren’t ready to hire a team, it’s wise to start developing a strategy early.
• Going beyond the seasonal business . Every year it gets harder and harder to operate a seasonal accounting business, especially if you’re looking to offer a variety of services. Unless you’re doing just cookie-cutter tax prep – and you avoid complex returns – you won’t be able to operate on a seasonal basis. That said, prioritizing the season and maximizing your efficiency (and your profits) during the heavy times is critical to finding success.
• Keep on top of regulatory changes. Keeping up with major regulatory changes can be a challenge – especially if you add staff. Finding a solution that helps minimize the burden and risk that otherwise exists will help stave off the constant onslaught of new information.
• Rethink the traditional role of the accounting firm. Traditional accounting firms used to meet with clients just once a year to do their tax return. More progressive firms are moving to a year-round schedule, which not only allows them to expand services for current and future clients but implies a partnership relationship that goes beyond the “one touchpoint” per year model. 

How much should an accountant charge per hour? Or should accountants charge a fixed fee ?

This, in many ways, is an unanswerable question because the only reliable advice that can be given is, “It depends.” Every context is different and is swayed by factors such as competition, location, service offerings, and level of expertise.

However, even though there isn’t a standard fee, most accounting firms are moving away from an hourly fee structure and choosing to institute to a fixed fee model that allows for better value for clients, a more manageable business plan, and eventually an increase in earnings.

Again, every context is unique, and there are certain situations when an hourly fee structure is best. These include:

• When you’re gathering information to develop a fee structure
• Gauging profitability in a newer firm and trying to determine the hours you need to work and remain profitable
• Early in your career when you need more time to complete basic tasks

Outside of those circumstances, a fixed fee is recommended and preferred. As your skill and expertise grow, so will your abilities to complete tasks quickly. With an hourly fee, this means having to take on more clients to maintain (and hopefully increase) your profits.

A fixed fee structure is about value. The expertise and skill you bring to service are of more importance than just an hour of work for clients. Pricing your abilities based on knowledge is not only good for your business but is ultimately valuable for your clients as well.

How should I price accounting and bookkeeping services ?

While there is still a debate surrounding hourly versus fixed fees in some aspects of the business, accounting and bookkeeping is not one of them.

Accounting and bookkeeping services (as well as other service lines, such as simple tax preparations) are almost universally charged as a fixed fee, and there is a market expectation for that pricing structure.

When determining a fee structure, many accountants call other firms and ask for quotes. They use the average of those quotes to determine a fair and competitive price for their services.

Another resource is local and national affiliations and associations. Many of the larger ones (such as the National Association of Tax Preparers) will distribute recommended price structures and other useful information. 

How much should a CPA charge for taxes?

While you do not have to be a CPA to prepare or file taxes, the training and expertise it requires to gain that credential matters. Simply put, you’re a CPA, and you deserve a premium for your services.

When trying to structure fees, it’s important to set a minimum job value. By setting a minimum job value at, say, $500, you won’t get mired in lower-level work that you likely don’t want to take on. Plus, that work can take up time and pull you away from more valuable work that you’d rather be doing.

Knowing what you want to charge and identifying the value you bring to your clients is critical. You are providing a service to your clients, but you’re also giving them a value based on your credentials and experience. So, it’s up to you to set the standards and have them choose between lower costs (them doing it their self) versus the value of having a CPA prepare your taxes.

That said, there’s a balance.

Many CPAs make a practice of “writing down” certain services because they know their hourly rate for larger projects can quickly become untenable for a client. Not only is this seen as a discount by the client, but it also allows you to create a fixed-fee structure for your services and show the clients the savings and value they receive.

If they need more staff, what do accounting firms look for when hiring?

When hiring, accounting firms are like many businesses and are looking for a combination of credentials, experience, and the ability to perform the necessary tasks. However, in an increasingly competitive hiring market, many firms are beginning to look at soft skills as valuable for new hires.

For decades, accounting firms have focused primarily on credentials. However, more and more, it’s less and less about certification and more about aptitude. For the most part, it’s easier to train accounting knowledge than it is to build customer service skills. When hiring, it’s important to look at the qualities a candidate can bring into a firm – not necessarily just credentials.

Of course, experience and credentials do matter. Especially when the experience sets for an accountant is specific and narrow. What types of tax returns have you prepared? What specializations do you carry? And credentials such as CPA, EA, attorneys, and state certifications (when required) are all still attractive to firms looking to hire.

How much does it cost to start an accounting firm?

Start-up costs can range from $2,500 to $25,000. Your location and your goals will determine cost in several ways, including whether you want to start a traditional brick and mortar firm or are looking to create a virtual office environment.

It’s important to remember that, besides physical (or virtual) space, accounting firms need to find and install the necessary equipment and technology to help their practice run more efficiently. That, in many ways, is the first step for a new entrepreneur. Once they’ve found a tax solution that can help them achieve their goals, they’ll be able to begin tackling the other day-to-day tasks and questions of running a business.

What’s the best business structure for accounting firms?

Finding the best business structure for your accounting firm is a critical part of not only ensuring success but helping to minimize both your tax burden and your risk.

While the circumstances of what your incorporation looks like will depend on your approach, it is considered a best practice to become incorporated right off the bat due to the legal protections it provides.

Popular options include:

• Partnership

If you’re running a solo firm, you’re likely going to be looking at an S-Corp, which allows you to pay yourself as an employee. However, if you are working with other partners, a partnership might be more preferential, as it provides a little more flexibility with payment. You are permitted to take draws or distributions, and it doesn’t necessarily require a payroll department because it’s not considered “wages” per se.

Whichever structure you choose at the beginning, know that it will likely evolve throughout the maturity of your firm. For instance, a firm might accept the risk and start as unincorporated to avoid the incorporation fees. Then they might transition to S-Corp. Over time, as additional owners move into the entity structure, the firm can add additional shareholders or can reorganize as a partnership.

It’s better to have a separate legal entity than to not and better to have separate federal filing than to not.

How do I get accounting clients?

The consensus is word of mouth. However, while a strong work ethic, exceptional service, and competitive pricing will undoubtedly attract clients, a successful business always requires more than just good luck.

Here are a few tips on how to increase your client base:

• Be a business owner, not just an accountant. This means focusing on solid business practices and looking for ways to ensure both stability and growth.
• Market yourself . This goes beyond starting a business and hoping people show up. Look for ways to partner with other companies and firms, as well as networking opportunities in the community. The local chamber of commerce is an excellent resource.
• Don’t forget about friends and family. While they won’t be able to maintain your business over the long haul, friends and family are a great starting place not only for initial clients but also for referrals.
• Take advantage of easy and cheap technology . Google Ads can be capped at $20 and make for productive investments to help drive local searches for accounting firm.
• Be in the community. Look for professional speaking engagements that you can offer to local groups for free. Create thought leadership presentations, teach community education classes and provide a venue to show your skills and knowledge.

You’ll find other ideas in our blog post on finding new clients .

How about social media and online presence for accountants – is it worth the effort?

Websites, social media, and various other online presences are a great way to establish credibility in the market.

For the most part, a simple online presence is relatively easy to start with minimal start-up costs. And while an online presence won’t guarantee an increase in exposure, not having one can have a negative impact and can discredit you to a potential client. In many cases, website and social media become an augmentation to your word of mouth referrals. Most people won’t simply call a number without the opportunity to do some basic online research.

However, there is a difference between a website presence and social media. In most cases, a website is static and allows businesses to transmit basic, evergreen information such as phone number, services provided, and credentials. Social media, on the other hand, can drive business in a longer and more indirect fashion.

Auto-posting any relevant story or information can help create a brand on social media – one where you’re seen as an authority on tax and accounting subjects. Posting constant content can help with visibility and, ultimately, increasing your customer base.  

If you think you may need help with this, take a look at our social media and other digital marketing solutions for accounting firms .

Some firms focus on a specific accounting specialization. Should I consider a niche accounting service?

Put simply, the more specialized you are, the more profitable you are. However, it’s not as much a question of “should you” but “can you.”

Many – if not most – firms will start as generalists and then slowly make their way a more niche practice. Sometimes a firm will intentionally build clients in one area. Others realize they have, say, many construction clients and then move to the particular niche.

If moving toward a niche practice, consider:

• What’s your timeline? When should you plan to transition to a specialized practice? When is the right time to stop chasing general clients?
• Partnering with more generalist firms can help take on other needs from clients while you take only the niche side of their business.
• Gaining professional affiliations is important. They can help distinguish you in a competitive market and further signal your niche work.

What’s the most popular accounting niche?

Niches, like many things, are often dependent on location, interest, and understanding where there is a need across different businesses. However, some of the most successful niches are the ones serving fellow professionals such as doctors, dentists, attorneys.

Services based niches as opposed to manufacturing-based are also on the rise. For example, real estate professionals, landscapers, and farming clients are becoming a more prosperous and unique way to do business.

However, it’s important to remember that you have to target businesses where you have the right location and the right skills. Again, farming has particular needs and goals. If you can fill them, then you have a specialization that is highly valuable to that market.

What do prospective clients consider when deciding how to choose an accountant? What do they look for in a CPA?

What are the things that are most likely to influence a client’s perception of you in the little amount of information they’re able to get from a flyer, website, or social media? While the idea that “first impressions matter” may seem a little cliché, they still matter to your clients. As a result, making sure your communication is direct, pleasing, and engaging is critical to your success.

Some important deciding factors include:

• Aesthetics. What’s the aesthetic of your website? Is it mobile compliant? Does it seem modern? Do your documents use color and seem to be professionally designed? Take care to control the new prospective client’s perception of you and what they think they see in you.
• Have a professional place to meet. Whether you operate a brick-and-mortar business or a virtual one, having a professional place to meet with clients is essential.
• Clients want comfort and assurance . Clients want the assurance that, if the IRS or another regulatory authority comes after them, that you be my defender and stand between them and the organization? Extending that sense of comfort is going to help influence them.
• Know your target market . Know what your market is looking for and make it very clear that’s what you can provide them.    

Thanks to our subject matter experts Jordan Kleinsmith and Mo Arbas for their input into this article.

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Understanding the Legal Requirements

Acquiring bookkeeping skills, creating a business plan for your bookkeeping business, marketing strategies for your bookkeeping business, managing finances in your bookkeeping business, acquiring clients for your bookkeeping business, is bookkeeping a profitable business, can you start your own bookkeeping business, how much should i charge my bookkeeping clients, the bottom line.

• Small Business
• How to Start a Business

How to Start Your Own Bookkeeping Business: Essential Tips

Understanding the legal requirements

Starting a bookkeeping business is something you might be interested in if you naturally love numbers and want to break free of the traditional nine-to-five. It’s possible to offer bookkeeping services to clients in person or remotely, which may be ideal if you would prefer a work-at-home job.

Before starting a bookkeeping business, you’ll first need to know the basics of operating legally. It’s also helpful to understand how to market your services and manage the financial side of running a business.

Key Takeaways

• A degree in accounting is not required to start a bookkeeping business, though a certification in bookkeeping can be helpful to have.
• You’ll need to choose a business structure, and register your business with the proper state authorities if required by law where you live.
• If you plan to hire employees, you may need to obtain workers’ compensation insurance in compliance with state law.
• Developing a solid marketing plan can help you build your brand and attract clients to your business.

The legal requirements for starting a bookkeeping business are similar to any other type of business. Some of the most important things you’ll need include:

• Selecting a business structure (i.e., sole proprietorship, limited liability company, etc.)
• Choosing a name for the business
• Registering your business with the proper state agencies
• Obtaining a federal Employer Identification Number (EIN) and state identification numbers, if necessary
• Applying for any necessary licenses or permits
• Opening a business bank account
• Getting business insurance , including liability coverage and/or home-based business insurance

The exact requirements for starting a small business will depend on the state in which you live. You may need to contact your secretary of state or department of revenue for more information on what paperwork you may need to complete to legally establish your bookkeeping business.

There may be additional steps required if you plan to hire employees for your business. For instance, you may need to obtain workers’ compensation insurance. The requirements for workers’ compensation vary by state. For instance, California requires workers’ compensation for all employers, regardless of the number of employees. In Alabama, on the other hand, businesses are not required to purchase workers’ compensation insurance if they have fewer than five employees.

Some states may impose steep penalties against businesses that fail to obtain workers’ compensation insurance.

Starting a bookkeeping business requires an understanding of accounting and bookkeeping practices. You may need to first complete a training program before you can launch.

For example, you might pursue any of the following:

• Bookkeeping certification
• Tax certification
• Accounting software certification

Unlike the requirements to become an accountant, the training required to become a bookkeeper is less strenuous. It’s possible to find and complete an online training program from home.

As you compare online bookkeeping courses , consider the range of topics covered, the course format, and the cost. Whether it makes sense to obtain just one bookkeeping certification or additional tax and accounting software certificates can depend on your niche and the types of services you plan to offer. 

While a degree in accounting may be helpful for starting a bookkeeping business, it’s not an absolute requirement.

A business plan is a detailed overview of how you plan to launch and grow your business. There are several key elements that are typically included in a comprehensive business plan. Here’s what yours might look like as you draft a plan for your bookkeeping business.

• Executive summary : The executive summary should offer a brief overview of what your business is about, your mission, and how you’ll be successful. Your mission statement can also include information about your employees (if you plan to hire any) and your plans for growth.
• Company description : Your company description is an opportunity to provide additional details about your business, including who you plan to serve and what problems you’ll solve for your clients.
• Market analysis : Market analysis allows you to look at your competitors and identify their strengths and weaknesses. Completing this section can help you better understand what makes your bookkeeping business unique.
• Organization and management : This section should describe how your business is legally structured and who’s responsible for running it. If you’re operating as a one-person business, this part of your plan will likely be brief.
• Services : In the services section, you can expand on what types of services you plan to offer as a bookkeeper and who you expect your customers to be.
• Marketing : How you market your bookkeeping business can depend on your niche or target audience and what resources you have to invest in advertising. You’ll use this section to sketch out your marketing plans for attracting clients to your business.
• Financial projections : This section is where you’ll outline how much revenue and profit you expect to make from the business.

Having a business plan to start a bookkeeping business isn’t a requirement, but creating one can help you get some clarity on what your goals are and how you plan to proceed with growing the business. Even if you’re just planning to offer bookkeeping services remotely as a sole proprietor , it can still be helpful to flesh out the exact steps you’ll need to take to succeed.

A business plan may be required if you plan to apply for business financing from banks or investors.

When you start any new business, you can’t expect customers or clients to magically find you. Instead, you’ll have to invest some time (and perhaps, money) in marketing your business.

If you’re specifically interested in working as a bookkeeper remotely, establishing a website and social media profiles may be a starting point for your marketing plan. Both can make it easier for potential clients to find you in online searches. You can also leverage social media to build your brand and increase your visibility.

Aside from a website and social media, there are some other options you might consider for marketing your services. They can include:

• Using LinkedIn to build out your professional network and establish credibility
• Joining a local meetup group of bookkeepers in your area
• Joining a professional business association in your area
• Participating in local small business events
• Seeking out opportunities to be a guest on podcasts in the finance niche
• Offering a seminar or workshop, either online or in person

When planning your marketing strategy , it’s important to think about the message you want to send to prospective clients. That message should be consistent across all of the channels you use to market your business, whether that includes YouTube, Facebook, TikTok, or another platform. 

It’s also important to consider who your message is targeting. Your marketing content should speak to the needs and pain points of the types of customers you’re most interested in attracting to your business.

Keeping track of cash flow is essential for running any business. As you prepare to start your bookkeeping business, it’s important to keep track of your expenses, which may include:

• Website hosting
• Accounting software
• Customer relationship management (CRM) software
• Cloud storage fees
• Home office supplies (if you’ll be working remotely)
• Registration fees
• Fees for certification or training
• Marketing costs

Once your business gets under way, you can make a monthly budget to track your cash inflows and outflows. You’ll also need to give some thought to how you plan to invoice your clients for your services. That includes choosing when to send invoices , how quickly you expect them to be paid, and which payment methods you'll accept. 

Running a business also means paying taxes on your earnings. That includes income tax and estimated quarterly taxes . Generally, you’re required to make estimated quarterly tax payments to the Internal Revenue Service (IRS) if:

• You expect to owe at least $1,000 in tax for the year, after subtracting withholding and refundable credits.
• You expect your withholding and refundable credits to be the smaller of 90% of the tax shown on your current year’s return or 100% of the tax shown on your prior year’s return.

If your state imposes an income tax, you’ll also be responsible for making estimated tax payments to your state agency.

Opening a business bank account can make it easier to keep track of what funds go in and out. You can open a business bank account at a traditional bank, credit union, or online bank. You’ll need to provide your personal information, along with your business details, in order to open an account. Comparing fees, features, and accessibility can help you choose the best business bank account for your needs.

You might also consider applying for a business credit card to help cover expenses until you start making money. You can apply for a business credit card using your personal credit score and income ; business credit is not a requirement. If you’re considering a business credit card , you might want to look for one that offers a generous rewards program and/or charges no annual fee. 

Once you’ve covered all the legal aspects of starting your business, it’s time to start finding your first clients. There are a few ways you can go about doing this. These include:

• Looking for remote bookkeeping opportunities on freelance job boards
• Establishing profiles on sites like Fiverr or Upwork, which connect companies with freelance workers
• Reaching out to local businesses to ask if they need bookkeeping services
• Running ads on social media
• Joining local small business directories
• Offering a free consultation to local businesses
• Asking friends, family, or other business owners for referrals

Once you start getting your first clients, it’s important to focus on customer satisfaction. Clients who are happy with your services are more likely to stay loyal and continue to hire you. They also may be willing to refer you to people they know who might need a good bookkeeper.

Bookkeeping has the potential to be a profitable business if you’re able to maintain a solid roster of clients who are willing to pay competitive rates for your services. A typically remote bookkeeper’s salary is just over $55,000 a year, but it’s possible to make much more than that, depending on your clientele and the rates you charge.

It’s possible to start a bookkeeping business from scratch, even if you don’t have a professional or educational background in accounting or bookkeeping. Having a degree or certification in either area could be an advantage, but it’s possible to acquire the skills you need to become a bookkeeper online. Likewise, you don’t need to have experience running a business, but that could also prove helpful.

The amount you should charge your bookkeeping clients can depend on a number of factors, including how much experience you have, which certifications you hold, the types of services you offer, and the types of individuals or businesses you work with. Someone who’s new to the profession, for example, may start their rates at $20 an hour, while someone with several years of experience may charge $35 an hour or more. Researching average bookkeeper salaries for your area can give you an idea of what your competitors may charge.

Starting a bookkeeping business can be a great opportunity to take control of your career. Before diving in, however, it’s important to understand what’s involved to get your new business up and running. The more prepared you are before launching, the greater your chances of succeeding as an expert bookkeeper.

U.S. Small Business Administration. “ Launch Your Business .”

Insureon. “ State Laws for Workers’ Compensation .”

U.S. Small Business Administration. “ Write Your Business Plan .”

Internal Revenue Service. “ Estimated Tax .”

Glassdoor. “ Remote Bookkeeper Salaries .”

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans for May 2024 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How To Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

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Do Accountants Typically Write Business Plans ?

You’re in need of a business plan, so you’re probably here because you’re wondering if an accountant can write one for you.

The quick answer is no. An accountant doesn’t typically write business plans, but they do provide and produce information and advice that is vital to the business plan and its success.

Business plans are usually developed and written by business leaders, so if you own your own organization – that would be you! However, your accountant is there to collaborate with you every step of the way.

Without proper support, business plans can be daunting, so it’s important to surround yourself with the right expertise, such as a qualified accountant. That way, you can be sure you’re making sound decisions each step of the way.

So what role does an accountant actually play when it comes to business plans? Let’s find out!

What is a Business Plan?

A business plan is a document that outlines a company’s goals, strategies, financial information, and other relevant details that are necessary for the success of an organization.

You use a business plan to secure investments, attract potential partners and clients, and provide a roadmap for the company’s growth.

Essentially, it’s the tool that makes people take you seriously and proves that you’ve put some serious thought and analysis into the initial idea. For example, if you try to secure investments without a business plan, you’re likely to be laughed out of the door. Investors want to see how you plan to use their money and what exactly their return will be in the future.

What Does a Business Plan Include?

A business plan generally includes:

What Purpose Does It Service for a Company?

A business plan serves several purposes for a company, such as helping to define its goals, strategies, and long-term objectives including:

What Are Key Components of a Successful Business Plan?

A successful business plan will look like this:

How To Ensure Your Business Plan Is Effective

• Start with detailed research. Before you create a business plan, it is essential to research the industry and the market you are entering.
• Set SMART goals. These goals should be realistic and achievable
• Identify your target market. Knowing who your target market is will help you create a plan that is tailored to their needs
• Develop an effective strategy. Developing an effective strategy is key to ensuring your business plan is effective.
• Monitor progress. Monitoring progress will help you know if the plan is working or if adjustments need to be made

How Can an Accountant Help With Your Business Plan?

An accountant can help with your business plan in a number of ways by doing the following:

• Determine your break-even point
• Calculate your startup costs, and create a pro forma financial statement
• Create a budget and cash flow statement
• Provide advice on the best ways to structure your business
• Determine the most effective tax strategies for your business
• Review your plan and provide feedback on potential areas of improvement

Who Typically Writes Business Plans?

Business plans are typically written by entrepreneurs, business owners, and senior company executives. The plan should be written in collaboration with the company’s internal team, as well as outside advisors, such as financial advisors and legal experts.

Accountants will provide the following benefits for your business plan:

Legally Set Up Your Business Structure

First, your accountant will determine the type of business structure. This determines how the company is taxed, how profits and losses are distributed, and how the business is managed.

Then, your accountant will file the appropriate paperwork and register the business. Then they will obtain any required business licenses and permits.

Finally, the accountant will need to help open a business bank account to separate business and personal finances.

File the Necessary Paperwork

An accountant files the necessary paperwork by ensuring that all the relevant information is accurately recorded and reported. This includes ensuring that the financial projections are accurate and justified, validating the assumptions, and providing a thorough financial analysis and review of the business plan overall.

Additionally, the accountant makes sure that all relevant tax documents, such as corporate tax returns, payroll taxes, and any other applicable taxes, are accurately completed and filed.

Develop a Financial Plan and Track Your Expenses/Income

Now let’s take a look at what the financial plan looks like:

Advise You on the Tax Implications of Your Business Decisions

Your accountant will know the tax system inside out and will therefore be able to advise you on:

Provide Support During Audits or Other Legal Proceedings

An accountant can provide support during audits or other legal proceedings for a business plan by providing financial analysis to help ensure the accuracy and completeness of financial records and documents.

They can also help assess the financial impact of potential risks and opportunities and make recommendations for minimizing those risks. They may also provide advice on how to optimize the company’s financial performance and strategy.

Finally, the accountant can review and certify the business plan to ensure accuracy and compliance with applicable laws and regulations.

Act as a Sounding Board for New Business Ideas

An accountant can act as a sounding board for new business ideas by providing advice and guidance on the financial feasibility of the ideas, as well as offering suggestions for how to increase the chances of success.

They can also help to identify potential areas of risk and how to mitigate them. Additionally, an accountant can help to assess the potential costs associated with any proposed business plan and provide guidance on how to manage those costs.

Help You Negotiate Loans or Lines of Credit With Banks

Your accountant is able to help you negotiate loans etc., by providing the necessary financial statements, forecasts, and projections. They can also help ensure that all documents are prepared properly and accurately.

They will also be able to find you the best terms available from different banks and provide helpful advice on the risks and benefits associated with loan options.

Additionally, an accountant can help you better understand the financial implications of taking on debt and can help you establish a repayment plan that meets the needs of both you and the bank.

Provide Valuable Insights on Financial Trends in Your Industry

How much does it cost to work with an accountant.

The cost of working with a business accountant will vary depending on the complexity of your business and the services you require. Many accountants charge an hourly rate for their services, typically ranging from $50 to $200 per hour.

Hiring a virtual accountant from a trusted firm such as Finvisor is a cost-effective solution for getting top-notch advice and expertise. You pay for the level of service you require, which is much cheaper than hiring someone full-time, but you still get a fully qualified accountant.

What Should You Expect From Your First Meeting With an Accountant?

Your first meeting with an accountant should be focused on getting to know each other and discussing your needs and goals. You should come to the meeting prepared with a list of questions, as well as any documents related to your finances.

You should also discuss your current financial situation, your short and long-term goals, any tax issues, asset management, and the type of services you may need.

Your accountant will also provide you with an overview of their services and how they will be able to help you.

How Often Should You Meet With an Accountant To Go Over a Business Plan?

The frequency of meetings with an accountant to go over a business plan will depend on the specific needs of the business. Generally, an accountant should be consulted at least once a year to review the business plan and make necessary adjustments.

In certain cases, meeting more often may be beneficial, such as when the business is undergoing significant changes or when the business is in its startup phase.

If you want to know more about how an accountant can be a valuable asset when developing and executing a business plan, get in touch with Finvisor for more information.

To learn more about what we do, or to request a quote, contact us at [email protected] or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!

*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*

• Last Modified
• June 19, 2023

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Accounting Firm Business Plan

If you are planning to start a new accounting firm, the first thing you will need is a business plan. Use our sample accounting firm business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new accounting firm, spend as much time as you can reading through some examples of  service-related business plans .

Reading sample business plans will give you a good idea of your aim. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample accounting firm business plan for you to get a good idea about how a perfect business plan should look and what details you will need to include in your stunning business plan.

Accounting Firm Business Plan Outline

This is the standard accounting firm business plan outline which will cover all important sections that you should include in your business plan.

• Product and Services
• Vision Statement
• Mission Statement
• Business Structure
• Chief Executive Officer
• Accounting and Tax Consultants
• Admin and HR Manager
• Marketing and Sales Executive
• Client Service Executive / Front Desk Officer
• SWOT Analysis
• Market Trends
• Target Market
• Competitive Advantage
• Sources of Income
• No. of Clients v/s Revenue Chart
• Payment Options
• Publicity and Advertising Strategy
• Financial Projections and Costing
• Generating Funds/Startup Capital
• Sustainability and Expansion Strategy

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After getting started with upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your accounting firm business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample accounting firm business plan

Need help writing your business plan from scratch? Here you go;  download our free accounting firm business plan pdf  to start.

It’s a modern business plan template specifically designed for your accounting firm business. Use the example business plan as a guide for writing your own.

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Accounting | How To

How To Find an Accountant for Small Business: A Guide

Published September 13, 2022

Published Sep 13, 2022

REVIEWED BY: Tim Yoder, Ph.D., CPA

WRITTEN BY: Danielle Bauter

• Step 1: Decide on Tasks Step
• Step 2: Choose an In-house or Independent Accountant
• Step 3: Choose an Online or In-person Accounting Service
• Step 4: Find Out If They Support Your Accounting Software
• Step 5: Look for Expertise in Your Niche

Step 6: Evaluate Their Credentials

• Questions to Ask a Prospective Accountant

Bottom Line

Accountants can provide the financial guidance and expertise required to run your business successfully while also helping you strategize for future goals. Determining where to find an accountant for your small business depends a lot on what you want to be done and the type of accountant you’re looking for. You can opt to work with an accountant virtually or locally or hire a full- or part-time internal accountant.

Step 1: Decide What Tasks You Want Your Accountant to Perform

You may prefer for your accountant to be involved in day-to-day financial duties, or you may want someone who specializes in filing tax returns. Depending on the types of tasks involved, the time requirement can be anywhere from a few hours a month to a full-time commitment. Here are a few examples of tasks that your accountant can assist with:

• Account setup: If you have just purchased accounting software and need someone to help set it up, you can work with an accountant to customize it for your industry. They can also assist with setting up your chart of accounts, customizing forms, and optimizing the software to help save you time and money.
• Basic bookkeeping: These types of tasks include classifying transactions and reconciling accounts. You may opt to connect your bank account to your accounting software, in which case the accountant would ensure that the categories for imported transactions are classified correctly. You may also want someone to input your transactions and reconcile your bank and credit card accounts manually.
• Payroll: Although you may decide to work with an outside payroll service such as Gusto , your accountant can also help you to process payroll for your employees, including generating direct deposits, filing payroll taxes, and submitting quarterly and annual payroll forms. See our recommendations for the best payroll services for small businesses for more information about the types of services available.
• Back-office tasks: Your accountant can also help with back-office tasks like paying bills and issuing invoices. Depending on the number of invoices and bills you receive, this could be time-consuming and you may ultimately decide to hire an internal bookkeeper in the interest of saving money. For A/P tasks, another option is to use an application like Bill.com , which we ranked as the best overall accounts payable software .
• Sales tax returns: If you have a retail business that files quarterly sales tax returns, it would be in your best interest to hire an accountant with expertise in this area who can help you stay compliant to avoid a potential audit.
• Income tax returns: An accountant will prove to be most valuable during tax season by assisting with tax credits and deductions and filing your personal and business income tax returns. However, they should also be able to provide guidance year-round. They can assist with tax advice and planning, helping you to plan for future tax situations.

Not all of the tasks need to be performed by the same person. For instance, we recommend having a CPA prepare your income taxes. However, a CPA is probably too expensive to perform basic bookkeeping tasks, in which case you may want to hire a bookkeeper.

Step 2: Decide If You Want an In-house or Independent Accountant

Consider the scope of work that you want your accountant to perform, and whether you have enough work to keep an in-house or internal accountant busy. While it might be nice to have exclusive access to their knowledge when needed, you may only want someone on a part-time basis. Also, keep in mind that back-office tasks like invoicing and paying bills are more difficult to outsource than other activities like classifying transactions and reconciling accounts.

While you may decide to hire an in-house accountant or bookkeeper, it’s common to have an external CPA prepare your tax return. For this reason, hiring an independent accountant or accounting firm on a consulting basis is a good first step for a growing business. The outside firm can often cost less than the salary and benefits of a full-time employee, and you may also receive a higher level of advice from a CPA or tax accountant.

• Where to Find an Internal Accountant
• Where to Find an Independent Accountant

If your business has grown in revenue and transactions have become more complex, you may want to consider hiring a full- or part-time internal accountant. There are a number of ways of finding an internal accountant, and this includes asking for referrals and consulting career networks like LinkedIn. Newspaper advertisements and employee search firms are other resources that can be utilized for a fee.

If you’re looking for an independent accountant, you can ask for referrals from trusted friends and colleagues, or reach out to your local chapter of American Institute of Certified Public Accountants (AICPA), which gives you access to an online directory of CPAs. You can also ask your local chamber of commerce if there are any accountants that would be a good fit for your business. We also suggest asking your professional service providers, such as attorneys and business advisors, if they have any recommendations.

Step 3: Choose Between an Online or In-person Accounting Service

Once you have determined what you want from an accountant, you’ll then need to decide whether you want to work virtually or in person. If you’re comfortable with technology, an online accountant may be a good option. This type of relationship will often require sharing files and documents online as well as communication via video chat or phone.

If you would prefer to work in person with your accountant—whether that’s at your office or their location—it’s important to ask about their communication style and how the tasks will be performed. Another consideration is their availability—can they work on their own time or would you prefer someone to be available for specific hours each day? Also, some accountants may bill you for mileage or phone calls, so you should be sure to determine this ahead of time.

• Where to Find an Online Accountant
• Where to Find an In-person Accountant

There are many online accounting services that exist, and for many business owners this may be an ideal solution because of the ability to both communicate and work remotely. In our evaluation of the best online bookkeeping services , we selected Bench as the best overall because of its wide range of services offered at a great value. In addition to bookkeeping support, Bench also offers tax assistance, payroll integration, and catch-up bookkeeping services. However, there are many other virtual accounting firms that may be a good fit for your business.

If you have decided to work with an in-person accountant, it’s a good idea to ask for referrals from family, friends and colleagues—essentially anyone who may be in a position to recommend an accountant who can assist with your business. Specifically, find out if these referrals have a particular niche, such as small business owners or clients in certain industries. If possible, try to meet face-to-face with the potential accountant so that you can gauge your comfort level in working with them better.

You can also check with your state or national associations, such as the state CPA societies , which maintain online directories of members or can provide a list of tax professionals in your area. Also, the IRS maintains a directory of preparer tax identification number (PTIN) holders, which includes CPAs, enrolled agents, and attorneys, who have current credentials recognized by the IRS. You can search the directory by ZIP code to find a qualified CPA or tax professional near you.

Step 4: Find Out Whether They Support Your Accounting Software

More than likely, unless you hire an in-house accountant, you’ll need to be doing some of the work in your small business accounting software. This may include entering and paying bills, invoicing clients, and reconciling your bank accounts. It’s important to make sure your external accountant is an expert in your chosen accounting software so they can answer questions and provide training if there’s a steep learning curve.

Accounting software like QuickBooks Online , which received the top spot in our list of best small business accounting software , is a user-friendly option that scales to your business. It also comes with the support of QuickBooks Live , which we selected as one of the best online bookkeeping services for companies that want assistance with QuickBooks Online. If you’re a Xero user, Bookkeeper360 is a Xero Platinum Partner and provides both accounting and cloud-based bookkeeping and business advisory services.

Step 5: Look for Expertise in Your Niche Industry

If your business belongs to a very specialized industry, you should find an accountant that specializes in that area. Niche industries include:

• Oil and gas properties: Oil and gas accounting delves into the acquisition, exploration, development, and production activities. No matter their area of operation, all oil and gas companies will perform the same core activities: capital expenditure, operating expenses, and revenue recognition.
• Restaurants: Restaurant accounting includes a combination of management and back-office operations, such as taking inventory, employee scheduling, and cost management. If you’re looking for comprehensive specialty software, check out Restaurant365 , which we ranked as the overall best restaurant accounting software .
• Trucking: An accountant that specializes in the trucking industry should have expertise in managing loads, dispatches, expenses, and orders. Trucking businesses must file International Fuel Tax Agreement (IFTA) reports, so a qualified accountant should be able to assist with that as well. If you’re an owner-operator or a small trucking business, check out our article on the best trucking accounting software .
• Nonprofits and churches: Nonprofit organizations must abide by stringent requirements for budgeting, financial planning, reporting, and auditing. Churches must also have strong accounting systems to provide reports to key stakeholders like the board of directors and donors. We recommend Aplos as the best overall accounting software for both nonprofits and churches .
• Farm and ranch: Accountants with expertise in farm and ranch accounting should be able to create cost centers to track profit and loss by specific farm units and manage inventory items like feed and grain. It’s also useful for your accountant to be able to track activities related to fixed assets. Our article about the best farm accounting software recommends different options for farmers and ranchers.

When searching for an accountant, you want to be sure that they have the proper credentials. If they claim to be a CPA, this means that they have passed the exam and are licensed by your state. CPAs also fulfill continuing education requirements to keep their licenses active, and they stay up to date on all federal, state, and local tax laws. There are additional certifications that some CPAs have, such as Accredited in Business Valuation (ABV), Certified Valuation Analyst (CVA), and Personal Finance Specialist (PFS), among others.

If you received the recommendation from the IRS, your state board of accountancy, or a state CPA society, those credentials are most likely legitimate. However, if you received a referral or searched online, you might want to verify their status by searching CPA Verify , which is an online central database that contains information about licensed CPAs and public accounting firms. Be sure to ask for references and speak with some of your prospective accountant’s clients before making a decision.

Questions To Ask a Prospective Accountant

If you’re not sure what to ask a prospective accountant during your meeting, it’s a good idea to focus on their experience and availability, the size of their team, and whether they have any specialties. Here are a few sample questions:

1. How long have you been an accountant?

It’s important to find out specifics, including how much experience they have working with small businesses. If you have a complicated accounting situation, you probably don’t want someone who just graduated from accounting school. Look for an accountant with at least two years of experience under their belt, if not more.

2. Who will I be working with, and how will we communicate?

It isn’t uncommon for an accountant to have a staff that provides support. Find out the size of their firm and their team members’ qualifications before deciding if this is a fit for you. If you’re a very small business, it’s probably best to work with an accounting firm that’s also small and can provide more personalized attention. You’ll also want to establish expectations regarding communication—how often you’ll connect and in what way.

3. Are you available year-round?

If you’re looking for an accountant to perform a one-time audit or to file a tax return, you may not need someone available year-round. But, if something comes up, you want to make sure they’re available for assistance in other months besides tax time.

4. Are you able to represent me in case of an audit?

CPAs can represent you at hearings and speak for your business if you’re audited by the IRS. They can also ensure that you have the required documentation and can prepare you with what to expect during the audit process.

5. How much do you charge, and how do you bill?

It’s appropriate to ask about the accountant’s fees and how they bill for their services. Some services may be a straight fee charged by the job, while others may be billed on an hourly basis. Other accountants may request a monthly retainer. In each case, you can ask for an estimate to provide clarity and set expectations.

6. Do you have any experience in my industry?

Many accountants specialize in certain industries, so it’s best to look for someone who has that expertise so that they understand the unique needs of your business. You can also ask about their experience working with businesses with the same structure as yours, whether that’s a sole proprietorship, limited liability company (LLC), partnership, or corporation. Find out how their current clients have grown and developed over the years to get a sense of whether they’ll be able to handle your company’s evolving needs.

How to Find an Accountant for Small Business Frequently Asked Questions (FAQs)

What is an accountant.

An accountant is essentially the financial backbone of your business. They prepare taxes, examine financial records for accuracy, prepare financial reports for individuals and businesses, ensure that their clients comply with tax laws and regulations, and provide advice when needed. Accountants may be involved with creating business processes, which include controls to ensure that assets are managed properly. There are many specialties within accounting, such as tax accountants, cost accountants, and inventory accountants.

What is a small business accountant?

A small business accountant specializes in all of the aspects of financial management that impact a small business. You may work with your small business accountant on any level, depending on the needs of your business. It can range from monthly account reconciliations to annual tax compliance and quarterly statements. You may also have a more integrated relationship that includes support with payroll and employee tax withholding.

Why do I need a small business accountant?

A small business accountant can be valuable at any stage of your company’s growth. This includes the formation of your company and creation of a business plan to assist with loan applications or a tax audit. An accountant can provide advice about your company’s legal structure, measure key business metrics, and manage your payroll. They can use your accounting software to analyze your cash flow, pricing, and inventory management. They can also provide guidance if you’re looking to buy or sell a business, or if your company is growing.

How much does it cost to hire an accountant?

The cost of an accountant depends on what you’re looking for and the expertise you require. It can often be determined by the size of your business, the services required, and the length of time you plan to work with them. Rates may also vary—from hourly, per project, or fixed fees. According to Salary.com, the average hourly rate for an accountant is $28 while the average annual salary is $58,940.

There are many things to consider when it comes to hiring an accountant for your small business. After you have decided what tasks you need help with, you have the option of hiring an in-house accountant, or one that performs work virtually. Many accountants have expertise in your niche industry, but it’s important that they have valid credentials. You can ask potential accountants the questions we have provided.

About the Author

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Danielle Bauter

Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor's degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications.

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Home > Finance > Accounting

Accounting 101: A Guide for Small-Business Owners

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So you're launching a business—congrats! But along with a rock-solid business idea, you need to chart a path to financial success by documenting, assessing, and analyzing your finances in a process known as accounting. Most small-business owners aren’t accountants, and without a background in finance, setting up an accounting system for the first time can be (understandably) overwhelming. Keep reading: our crash course in small-business accounting walks you through each step of the process.

Small-business accounting 101

• Consult a bookkeeper, accountant, or CPA
• Create a business bank account
• Choose your accounting method (cash or accrual)
• Set up your books
• Start recording financial transactions
• Start generating financial documents
• Understand your tax responsibilities

1. Consult a bookkeeper, accountant, or CPA

You can learn a lot about how to do accounting for small businesses just from browsing the internet. But nothing beats up-front, personalized advice from a certified professional—in this case, a bookkeeper, accountant, or CPA. Bookkeepers, accountants, and CPAs all bring something different to the table.

• Bookkeeper: Keeps and organizes financial records. Can also handle financial tasks like payroll and invoicing.
• Accountant: Keeps and organizes financial records while providing deeper insight into your business's financial state. Can also tackle tasks like filing taxes.
• CPA (Certified Public Accountant): Accountants who have passed the Uniform Certified Public Accountant Exam, which holds accountants to more exacting standard

Some CPAs and bookkeepers require a retainer if you want monthly assistance, but many simply charge by the hour. You can pay for the advice you need and go from there.

Bookkeeping vs. accounting: What’s the difference?

People who aren't small-business accountants or often use bookkeeping and accounting interchangeably, but they actually mean two different things. Bookkeeping refers to keeping financial records. Accounting means not just keeping financial records but also analyzing and interpreting financial data so you can make wise fiscal decisions.

• Small-Business Bookkeeping Basics
• The Difference between Bookkeeping and Accounting
• The Top 10 Bookkeeping Errors that Are Costing Your Business Money

When should you hire a full-time bookkeeper or accountant?

Consulting part-time with a small-business bookkeeper or accountant can work nicely for newer, smaller businesses. But once your business is big enough that you can't (or simply don't want to) wrangle finances by yourself, it's probably time to get a bookkeeper or CPA on your payroll.

• The 9 Best Virtual and Outsourced Accounting Services
• 8 Life Hacks to Speed Up Monthly Bookkeeping
• The Best Bookkeeping Software for Small Businesses

By signing up I agree to the Terms of Use and Privacy Policy .

2. Create a business bank account

The second you decide you’re going to launch your business, you should immediately separate your personal finances from your business finances. That means setting up a separate business bank account to handle all your small-business transactions, including a business savings account to cover your business on a rainy day.

Why is separating your financial accounts so crucial? For one, it's easier to track your business's financial progress if it isn't jumbled with your personal cash and credit. For another, it protects you legally: if your business gets sued, your personal assets can't be taken as collateral .

Looking for a business bank account? Start by learning all about how to open a business bank account , then check out our top recs for business checking and business savings accounts to find the right account for you.

• Small-Business Bank Accounts: Your Ultimate Guide
• Types of Business Bank Accounts
• Can I Have Two Business Bank Accounts?

Do you need a business credit card?

It can be a good idea to use a business credit card, but don't rely on it to make overdue payments or fund big purchases. Most business credit cards offer customer rewards, which can save you money on travel expenses, and paying off your business credit card's balance each month is a good way to build good credit for your business.

If you think a business credit card could benefit your business, learn how to get a credit card , then take a look at the best credit cards for small businesses .

• When Is the Best Time to Apply for a Business Credit Card?
• Lines of Credit vs. Credit Cards
• Can You Get Business Credit Cards with Only an EIN?

3. Choose your accounting method (cash or accrual)

Business owners have to settle on one of two basic accounting methods before filing their first tax returns: cash-basis and accrual-basis accounting.

The accounting method you choose has a huge impact on your business, so we highly recommend you talk to your small-business accountant, CPA, or bookkeeper about which method works best for you . With that caveat in mind, here's a quick overview of the two types—and which type certain businesses are legally required to use.

Cash vs. accrual accounting

If you set up your finances with cash-basis accounting, you'll record financial transactions when the cash moves accounts .

• For instance, as soon as you pay a bill or receive an invoice, you’ll record that transaction in your financial accounts—whether or not the external company processes the payment that same day or not.

If you set up your finances with accrual-basis accounting, you'll record financial transactions when they occur, not when the money moves accounts.

• For instance, if you charge a client for repair work you finished on April 15, you'll record the income on that same date. If you received an invoice in September, you'll record it then, not when the company you owe actually processes the payment.

Most accounting software (with some notable differences) use the accrual method by default, but you can learn more about which method is right for you by talking to an accountant and reading a few more informational articles.

• What Is the Difference Between Cash and Accrual Accounting?
• What Is Accrual Accounting?
• What Is Cash Accounting?
• Why Cash Flow Is Important for Your Small Business

Compare top picks for business accounting software

Data as of 3/9/23. Offers and availability may vary by location and are subject to change. *Only available for businesses with an annual revenue beneath $50K USD **Current offer: 90% off for 3 mos. or 30-day free trial †Current offer: 50% off for three months or 30-day free trial ‡Current offer: 75% off for 3 mos. Available for new customers only

4. Set up your books

Once you've settled on an accounting method, it’s time to set up your books. Here are the main questions to ask that can guide you toward creating the best bookkeeping records for your small business.

Should you choose single-entry or double-entry bookkeeping?

• What Is Double-Entry Bookkeeping?

What method should you choose to keep your books?

There are three primary methods for keeping your books:

• Spreadsheet software like Excel or Google Sheets
• Accounting software (like QuickBooks Online or Wave Accounting)
• Bookkeeper or accountant .

Using spreadsheet software is the cheapest accounting option (especially if you use a completely free software, like Google Sheets). Hiring an in-house bookkeeper, setting up an in-house accounting team, or outsourcing your bookkeeping and accounting to a virtual provider is the most expensive accounting option, but it frees you up to focus on the business side of things (not just the financial side).

Accounting or bookkeeping software is a good middle-of-the-road option, both in terms of how much hands-on bookkeeping you want to do and how much you want to spend on accounting software. Depending on the software provider you choose and the plan you sign up for, accounting software automates most of bookkeeping's most tedious tasks, from calculating sales tax to generating easy-to-read financial reports.

Accounting software ranges in price from free to hundreds of dollars a month. And generally, no matter the plan or price, accounting software is more reliable than by-hand spreadsheet accounting.

• 12 Reasons Business Owners Say to Use Accounting Software
• 10 Reasons You Should Outsource Your Accounting
• Benefits of Making the Move from Paper Accounting to Digital
• The Best Business Budget Templates for Small Businesses

How frequently should you update your books?

How often should you sit down with your books? As a responsible business owner, you need to record every single financial transaction you make—so the answer might depend on how many bills you pay and invoices you send out. At the very least, you'll want to sit down for bookkeeping monthly, but we strongly recommend you update your books at least weekly , though preferably daily.

5. Start recording financial transactions

You've opened a business checking account, chosen your accounting method, and decided how you're going to keep your books. Now you're ready to start recording the transactions themselves.

You'll record each transaction in a separate financial account in your general ledger. There are five primary types of accounts:

• Asset accounts , where you list everything your business owns
• Owner's equity (or shareholder equity) accounts , where you list everything you or your shareholders have invested in your business
• Liability accounts , where you list everything groups other than yourself or your shareholders have invested in your business (for instance, banks)
• Revenue accounts , where you list money your business earns by selling products or services
• Expense accounts , where you list the money your business spends to stay afloat and operational

Your CPA can advise you on which types of accounts you need. Alternatively, as you set up your accounting software, you should see a list of optional financial accounts for you to add to your chart of accounts and general ledger. 

Crucial documents for accurate accounting

To make accurate journal entries and record financial transactions correctly, you need to hang on to some essential financial documents :

• Tax statements
• Invoices and bills
• Employee tax forms, like W-2 and 1099 forms

Most accounting software automates entering information from the documents above. For instance, receipt scanners let you take photos of receipts that you upload to your software for easy journal-entry generation. And if you send invoices or pay bills with your software, the numbers should sync automatically with your ledger.

• What Are Generally Accepted Accounting Principles?
• 5 Useful Accounting Tips for Small Businesses
• How to Calculate Your Break-Even Point

6. Start generating financial documents

Once you have all your bookkeeping, accounting, and payroll processes set up, it’s time to start doing the actual accounting. As soon as you’ve entered financial transactions for a certain period of time—whether that’s a day, week, or month—you can use a spreadsheet template or your accounting software to generate crucial financial documents . (You can also ask your CPA or bookkeeper to create documents for you, though they should be doing that themselves without your prompting.)

The most important financial documents for any business owner who wants to understand their finances are balance sheets, cash flow statements, and income statements. You can look at these documents yourself or collaborate with a financial professional to analyze the state of your business’s finances. Our accounting tips can get you started on your way to assessing your finances.

• How to Read a Financial Statement
• What Is a Balance Sheet?
• How to Prepare a Profit and Loss Statement
• What Is a Cash Flow Statement?

7. Understand your tax responsibilities

And now for everyone's favorite subjects: small-business accounting and taxes.

You already know this, but just to make sure it's crystal clear, taxes are ridiculously complicated . Small-business taxes vary between industries, states, and business types, so to get the best advice on what taxes your business needs to pay, consult with your accountant. For the most part, though, you’ll probably end up paying income taxes, sales taxes, and payroll taxes .

If you’re self-employed, you'll pay self-employment taxes , which is a little different from small-business taxes and personal taxes. You can get more guidance on how to record and pay a small-business tax with your accounting software and tax professional.

• How to File Small-Business Taxes
• What Small-Business Owners Need to Know About FICA Taxes
• When Are Business Taxes Due?

The takeaway

Creating your own small business might be one of the hardest things you ever do—but we have complete confidence that you can handle it. When you stay on top of your bookkeeping and accounting processes, you empower yourself to make wise financial decisions. With these basic accounting tips for small-business owners under your belt, we’re sure you have the tools you need for small-business success.

Haven’t finished creating your business yet? Check out our guide on how to establish a small business so you can start turning a profit ASAP.

Related reading

• The 7 Best Small-Business Accounting Apps of 2023
• The 7 Best Accounting Software for Freelancers in 2023
• The Best Bookkeeping Software for Small Business 2023

Small-business accounting glossary

Accountant : A professional who records financial transactions, creates financial documents, analyzes financial data, and works to set financial goals. 

Asset : Any resource owned by a company. An asset can be tangible, like a piece of equipment, or intangible, like a copyright.

Balance sheet : A financial document that shows your assets, liabilities, and shareholders' or owner's equity. If your business is healthy and growing, a balance sheet should show that your assets are equal to your liabilities and equity.

Bookkeeper : A professional who records financial transactions and keeps detailed financial records.

Cash flow statement : A financial document that shows all of a business's sources of cash, namely cash flow from operating, investing, and financing activities. The document also shows where that cash goes and determines if you have negative or positive cash flow. If you have negative cash flow, your business is losing money; positive cash flow means you're earning money.

Chart of accounts : A list of every financial account in your general ledger. Financial accounts include asset, liability, equity, revenue, and expense accounts.

General ledger : A collection of financial records and accounts that details a business's financial history. Information in the general ledger can be used to generate financial reports that help stakeholders make informed decisions about the business's growth and future.

Liability : Everything owed by a company (aka debts).

Profit and loss statement : A financial document that lists a business's profit and loss (including revenue, operating expenses, and non-operating expenses), also known as an income statement.

Small-business accounting checklist

Phew, you made it to the end—nicely done! Thanks for sticking with us, and best of luck to your small business. We know you're going to do great.

9 steps to successful small-business accounting

• Consult an accountant, bookkeeper, or CPA: Get expert advice on important topics like how to organize your books, what taxes you can expect to pay, and how to read important financial documents.
• Create a business bank account: Protect yourself legally and financially by setting up business checking and savings accounts and splitting your personal and business finances.
• Choose your accounting method: Get your CPA's advice on the right accounting method for your business: cash-basis or accrual-basis accounting.
• Set up your books: Decide if you want to use accounting software or work with an accountant to keep your books. Choose between single-entry bookkeeping, which is simpler, and double-entry bookkeeping, which is financially safer.
• Start recording financial transactions: Set up your general ledger and chart of accounts.
• Start generating financial documents: Create balance sheets, cash flow statements, and income statements, then analyze the data to move your business in the right direction.
• Understand your tax responsibilities: Get familiar with income, payroll, and sales tax, including the tax deadlines for each.

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How to Hire the Right Accountant for Your Business

Table of Contents

Before hiring an accountant, you should conduct a thorough search, ask thoughtful questions of potential candidates, and screen the ones you think could be the right choice. Here are some factors to consider before choosing an accountant.

What is an accountant?

A business accountant can fill several functions. They can serve as your business’s financial guide by overseeing a large portion of your company’s financial planning and recordkeeping. They can handle your bookkeeping and help with tax planning and preparation of financial documents like tax returns. You can also use an accountant to help you avoid common accounting mistakes , such as financial inconsistencies, overpayments and cash flow shortages.

During your search for an accountant, you may also consider hiring a certified public accountant (CPA). A CPA is different from a typical accountant because a CPA can write audited financial statements, like balance sheets or income statements. Although accountants and CPAs both hold accounting degrees, CPAs are state-certified, meaning they must pass an exam to get their license and take an annual course to keep it. CPAs have unlimited representation rights before the IRS, which allows them to represent you on matters such as audits, payment-or-collection issues and appeals. [Read related article: The Difference Between an Accountant and a Bookkeeper (and Why You Need Both) ]

Where can you find a good accountant?

A good accountant is hard to find if you don’t know where to look. Before you explore outside resources, use your connections to your advantage. Ask your colleagues or other business owners for referrals. Do your due diligence when investigating anyone you are seriously considering hiring.

• If you want to do a background check on the CPA firm or CPA you’re interested in, check your state’s CPA society on The American Institute of Certified Public Accountants. The nonprofit organization creates and grades the exams CPA candidates take to earn their certification. All of the CPAs listed there have been vetted and state-certified.
• Look for an accountant who is a fiduciary. Accountants who follow a fiduciary standard are required to put the client’s best interests above their own.
• The National Association of Personal Financial Advisors is another good place to find trained financial advisors who are dedicated to meeting their clients’ needs.

The Internal Revenue Service (IRS) also maintains a directory of qualified and accredited professionals who have preparer tax identification numbers, also known as PTINs. A PTIN is an identification number from the IRS that accountants and tax preparers must use to obtain clearance to file federal tax returns or claims.

What questions should you ask your accountant?

You can save time and future headaches by asking your accountant the right questions before you hire them. The process of hiring the right accountant is similar to that of hiring any other employee for your business.

Set a time to speak with the accountant candidate over the phone or in person. Before going through your questions, tell them a little about yourself and your business. This will give them a feel for your company and add depth to the interview. Explain what your business does, what your industry is, the number of employees and clients you have, and your budget. Then, use the rest of the meeting to go through what’s important to you and what you want to know about them.

Here are a few examples of questions to ask accountant candidates:

Have you worked with someone like me before?

As a small business owner, you want the best advice on how to manage your company’s finances. However, if your accountant has only managed multimillion-dollar businesses, you need to know this. You want to work with someone who is familiar with the challenges of the type of business you run so that you’ll get the best advice. This doesn’t mean you should rule out accountants with different backgrounds, but you should ask about their plan for you.

What is your communication style?

Communication is key in any relationship, including the one you’ll build with your prospective accountant. So, ask about what their interaction with you would look like as their client. When is the best time to reach them? Do they like speaking over the phone, emailing or meeting in person? Even if your communication preferences differ, see if you can meet in the middle.

How do you want to be paid?

Knowing how an accountant prefers to be paid will help you compare their rates to those of other accountants during your search. Your goal should be to understand how much everything will cost at the end of the year, based on their rates and payment method.

Learn more about screening questions to ask during a phone interview so you come prepared.

What red flags should you avoid in an accountant?

When you’re looking for an accountant, it’s important to do your due diligence. Even if your accountant’s actions benefit you financially, make sure they acted honestly and appropriately. You may encounter situations like this during your search. To avoid being duped, it’s important to understand the proper protocol for an accountant.

“Be wary of accountants with a lack of credentials, a history of short-term work contracts or a lack of communication,” said Logan Allec, a CPA and personal finance expert. “This could turn into serious problems down the road if you choose to hire them.”

In addition, keep these points in mind during your search:

• You don’t want an accountant who is OK with lying to the IRS to save you money. If they are comfortable with breaking the law and lying, they can also lie to you. Furthermore, you’re the one who will be held legally accountable for the information they provide. A good accountant can help you without falsifying information.
• Ethical considerations are very important when you are vetting an accountant. If they discuss other clients with you, they’re probably talking about you with others as well. This reflects a lack of trustworthiness. An accountant should be able to provide explanations without using another client’s name and private information.
• Watch out for accountants who push for too much control. If an accountant wants you to make them a signer on your accounts or contracts, they may not be for you. If they ask you to sign documents without encouraging you to check them first, something is probably wrong. A great accountant conducts your relationship like a partnership.
• An accountant will never promise you a huge refund or say they can deduct several of your expenses before they’ve fully examined your finances.
• Keep in mind that an accountant without a preparer tax identification number from the IRS cannot take money from you for preparing your taxes. That number should also be included on filed tax returns they submit for you.

If you ever need to cut your accountant loose but are worried it will keep you from filing your taxes on time, file Form 4868 , which gives you an extension on your filing deadline.

What qualities should you look for in an accountant?

Finding someone certified is only half the battle. It’s also important to choose an accountant with good communication skills and a personality you’re comfortable with.

Pick an experienced accountant who can break down complex information and explain it in a way you understand.

“Make sure they respond to you in a timely manner and that you understand exactly what they’re telling you,” said Jaime Thompson, a former certified public accountant at Bayside Accounting and Consulting. “Accounting jargon is considered by some to be its own language. If you don’t understand what the accountant is saying, don’t just shake your head and pretend like you do.”

If your accountant gives you a bad vibe, trust your gut and move on. You are essentially giving a stranger access to all of your personal information, and you have the right to feel comfortable with them. You want to feel secure telling them about your mistakes or asking silly questions without feeling judged.

“Obviously you should find an accountant who knows what they’re doing,” Thompson told business.com. “But it makes a world of difference when you find one who is personable.”

The best accounting invoice-generating software can assist you with bookkeeping, which will make life easier for both you and your accountant.

What are some benefits of using an accountant?

There are many parts of your business you can handle on your own, but knowing when to seek outside support is a valuable trait. If you are a small business owner who is just starting out, money may be tight, but that shouldn’t stop you from looking into accounting services. Here are some benefits of hiring an accountant:

Accountants can save you time and prevent costly mistakes.

“If your valuable time is being eaten up by managing your finances instead of growing your business, then you may need to consider hiring an accountant,” Allec said. “Having someone to manage your finances, whether you’re hiring a professional to file your taxes or do year-round bookkeeping, saves you from making costly mistakes that could stunt the growth of your business.”

“Think about how much time and effort you spend on trying to manage your finances yourself,” Thompson added, “not to mention the possible errors you could incur and related losses from poor financial decisions.”

They can help you choose the right business structure and accounting method.

An accountant can guide you toward the business structure type that best matches your company. Each business is different, and sometimes it’s hard to figure out the right legal structure for your business. Your options include limited liability companies, limited liability partnerships, and sole proprietorship or traders.

Accountants can also help you decide which accounting method you should use. Usually, new companies use the cash-based accounting method to record revenue and expenses when a payment is made. However, sometimes the IRS requires you to use accrual accounting if you sell a product or have inventory. With the accrual method, you document your income and expenses when they are billed instead of when you actually receive the money.

They help prevent headaches at tax time.

Tax season is also a good reason to hire an accountant. Filing taxes for a business is very different from filing taxes for yourself. If you are uncomfortable filing your business taxes on your own, or if you have a complicated tax situation, hire an accountant to file for you or to offer advice.

Accountants help keep you compliant with the IRS by filing legal documents for your business according to up-to-date tax laws, preparing annual account statements, and managing payroll so your employees’ tax codes and payments are entered properly. Doing so can help you avoid costly tax audits . 

They can aid you in making business decisions.

If you want to create a business plan , a qualified accountant can help you map out your finances so you can reach your goals, as well as aid you in making better financial projections and planning a budget .

In addition, accountants can help you make informed business decisions, like choosing whether your business should merge, sell, close or buy another business. Accountants are financial planners able to make you aware of the possible tax implications of every financial decision and help you examine other companies’ financial records so that you can verify their assets.

How much does it cost to hire an accountant?

The right accountant has the power to positively turn your business around. The cost of hiring an accountant depends on your criteria and budget.

According to the U.S. Bureau of Labor Statistics, the typical accountant earns $37.14 per hour. A report by Xendoo found that CPAs can earn anywhere from $150 to $450 per hour. 

How do you pay an accountant?

Before you hire an accountant, it’s important to know how you will pay them. Here are some of the ways accountants are paid.

• Hourly: According to a 2021 Intuit survey, 50 percent of accounting professionals bill by the hour, making it the most popular payment structure.
• Flat fee: Some accountants charge a flat fee, which is when your accountant has a set cost for a certain number of services you pay for monthly or quarterly.
• Percentage-based fee: Other accountants charge based on a percentage. With this method, you give them a portion of the assets within your account. These percentages can range from 0.59 percent to 1.18 percent, according to AdvisoryHQ. This percentage typically depends on the portion of your assets you let them manage.
• Brokerage model: Some accountants use the brokerage model, which is when they earn a commission based on the investments you buy. Take caution with this payment model, because some accountants may push you to buy expensive investments when smaller ones are offered, just so they can get a bigger payout.

Simone Johnson contributed to this article.

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Accounting Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Accounting, Bookkeeping and Tax Preparation

Are you about starting an accounting firm? If YES, here is a complete sample accounting firm business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting an accounting firm. We also took it further by analyzing and drafting a sample accounting firm marketing plan template backed up by actionable guerrilla marketing ideas for accounting firms. So let’s proceed to the business planning section.

Have you ever dreamt of becoming your own boss? Did you by chance study Accountancy and are finding it difficult to get your ideal job? You don’t need to worry because your dream of becoming your own boss and still work as an accountant can be fulfilled with little or no start-up capital.

In case you didn’t know, there are loads of small businesses, mom and pop businesses, amongst a few without the faintest idea of any accounting skills. These businesses struggle with their books and accounting concerns a lot.

Research shows that one of the reasons why many small businesses remain small and sometimes close shop is not because they don’t have clients or capital to run the business but because they fail to keep their books properly. If you are an accountant, then you can leverage on this read to start your own accounting services firm.

You can be rest assured that your services would always be in demand not only by small businesses that can’t afford to hire a full-time accountant but also medium scale and big corporation especially for auditing purpose and other accounting consulting services.

They know that it would save them cost and the good thing is that you can handle up to 20 clients per time depending on how organized and hardworking you are.

Just like most business, the accounting services industry is pretty open for as many people that are interested in the industry as long as you have what it takes to run an accounting services firm.

Even if you don’t have the finance and other requirements for starting a standard accounting services firm, you can come into the industry by starting – out as a small accounting firm servicing mom and pop businesses in your neighborhood.

If you have decided to start an accounting services firm, then you must make sure that you carry out thorough feasibility studies and also market survey.

This will enable you properly locate the business in a community or city with the right demography; a location that can readily accept your products. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.

Below is a sample accounting services firm business plan template that will help you successfully launch your own business;

A Sample Accounting Firm Business Plan Template

1. industry overview.

Firms in the Accounting Services industry are certified to audit the accounting records of public and private organizations and to demonstrate compliance to generally accept accounting best practices in the united states and perhaps in the world.

Certified public accountants (CPAs), included in this industry, provide a variety of accounting services, including auditing accounting records, designing accounting systems, preparing financial statements, developing budgets and providing advice on matters related to accounting.

Accounting services firms are known to offer a wide array of services, which includes audit and assurance services, tax preparation and compliance work, consulting assistance, restructuring and other accounting-related services.

Over the last half – a – decade, the Accounting Services industry has recovered from a post – recessionary decline in demand caused by a falling number of businesses in the United States, weak private investment and shrinking corporate budgets amongst others.

Nevertheless, the revenue generated in this industry has been on the rise since 2012, sustained by economic growth, rising equity markets and of course a growing number of new businesses. The Accounting Services industry has loads of small business operators servicing a wide range of clients ranging from start – ups to well established businesses.

The Accounting Services industry is indeed in a mature stage of its growth. The industry is characterized by growth in line with the overall outlook of the economy, consolidation from the largest players in the industry and wholehearted market acceptance of industry products and services.

The accounting services line of business will continue to be in high demand by business establishment in the United States, most especially as the number of businesses and employees increases. Corporate organizations are also expected to continue to outsource their auditing functions so as to focus their attention on their core area of operations.

The Accounting Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Nigeria, South Africa Japan, China, Germany, and Canada et al.

Statistics has it that in the United States of America alone, there are about 92,777 registered and licensed ( big, medium scale and small ) Accounting Services firm scattered all across the United States responsible for employing about 523,330 people and the industry rakes in a whooping sum of $97 billion annually.

The industry is projected to enjoy 4.4 percent annual growth within 2011 and 2016. The establishments with the lion share of the available market in this industry are DTT, EY, KPMG and PWC. These brands are known all over the world.

A recent report released by IBISWORLD shows that the geographic distribution of establishments in the Accounting Services industry is highly correlated with the overall population distribution in the United States. The report further stated that accounting service providers are predominantly small businesses that focus on serving local and regional markets.

Therefore, an increase in the number of individuals that require personal accounting services and businesses that need audit and tax services boosts the need for industry operators.

One thing is certain about starting an accounting services business -if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to secure clients because there are always mom and pop shops, start – ups and even corporate organization who would want to hire your services.

Lastly, with accounting services business, you can afford to partner with other smaller firms that are into financial related services. You can partner with tax consulting firm, you can partner with auditing firms and you can partner with human resource consulting firms et al.

The bottom line is that if you have a robust network and you are well positioned, you can indeed maximize profits with your accounting services firm.

2. Executive Summary

Rowland Pence& Co® Financial Consulting, LLC is a registered and licensed financial consulting firm with biased in accounting services and will be based in New York City – New York.

The company will handle all aspect of accounting related services; services such as auditing accounting records, designing accounting systems, preparing financial statements, developing budgets, tax preparation and compliance work, consulting assistance, restructuring and providing advice on matters related to accounting.

We are aware that to run an all – round and standard accounting services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well.

Rowland Pence & Co® Financial Consulting, LLC is a client – focused and result driven accounting services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pocket of our clients.  We will offer a standard and professional accounting services to all to our individual clients, and corporate clients at local, state, national, and international level.

We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services. At Rowland Pence & Co® Financial Consulting, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.

We will ensure that we hire professionals who are well experienced in the financial consulting services industry with bias in accounting, taxation, bookkeeping and payroll administration.

Rowland Pence & Co® Financial Consulting, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in the accounting services industry in the whole of New York City, and also to be amongst the top 20 accounting services firms in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that New York City is the right place to launch our accounting services business before sourcing for clients from other cities in the United States of America.

Rowland Pence & Co® Financial Consulting, LLC is founded by Rowland Pence and Stanford Darlington, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business.

Rowland Pence has well over 10 years of experience working at various capacities within the financial consulting services industry in the United States of America.

He graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered account. Stanford Darlington has ample experience in the area of tax consulting and financial auditing.

3. Our Products and Services

Rowland Pence & Co® Financial Consulting, LLC is going to offer varieties of services within the scope of the financial consulting services industry in the United States of America. Our intention of starting our accounting services firm is to work with both smaller organizations (start – ups and mom and pop shops) and also well – established corporate organizations who would want to outsource the accounting concerns.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;

• Providing accounting advice to corporate clients
• Providing accounting advice to individuals and small businesses
• Accounts preparation
• Financial auditing services
• Financial statement review services
• Providing other financial assurance services
• General accounting services
• Tax planning and consulting services
• Individual tax preparation and representative services
• Corporate tax preparation and representative services
• Providing other financial consulting and advisory related services such as designing accounting systems, preparing financial statements, developing budgets, tax preparation and compliance work, consulting assistance, restructuring and providing advice on matters related to accounting.

4. Our Mission and Vision Statement

• Our vision is to build an accounting service firm brand that will become the number one choice for both smaller businesses and corporate clients in the whole of New York City – New York. Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional, reliable and trusted accounting services that assist start – ups, corporate organization and non-profit organizations in handling their accounting cum financial related concern. We will position the business to become one of the leading brands in the accounting services line of business in the whole of New York City, and also to be amongst the top 20 accounting services firms in the United States of America within the first 10 years of operations.

Our Business Structure

Normally we would have settled for two or three staff members, but as part of our plan to build a standard accounting services firm in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of accounting services firm we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York City – New York.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer

Accounting and Tax Consultants

Admin and HR Manager

Marketing and Sales Executive

• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for providing accounting advice to corporate clients
• Provides accounting advice to individuals and small businesses
• Responsible for handling accounts preparation
• Responsible for handling financial auditing services
• Responsible for handling financial statement review services
• Handles other financial assurance services and general accounting services
• Responsible for handling tax planning and consulting services, individual tax preparation and representative services and corporate tax preparation and representative services
• Other services
• Responsible for handling other financial consulting and advisory related services such as designing accounting systems, preparing financial statements, developing budgets, tax preparation and compliance work, consulting assistance, restructuring and providing advice on matters related to accounting.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• creates reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the firm
• Serves as internal auditor for the firm

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned

6. SWOT Analysis

Rowland Pence & Co® Financial Consulting, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured accounting services firm that can favorably compete in the highly competitive financial consulting services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Rowland Pence & Co® Financial Consulting, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Rowland Pence & Co® Financial Consulting, LLC;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we know we will attract loads of clients from the first day we open our door for business.

As a new accounting services firm, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated financial consulting services industry; that is perhaps our major weakness. So also, we may not have the required cash to give our business the kind of publicity we would have loved to.

• Opportunities:

The opportunities in the financial consulting services industry is massive considering the number of mom and pop businesses, start – ups and of course corporate organizations who can’t afford to do without the services of accounting service providers. As a standard and well – positioned accounting service provider, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as an accounting service firm operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The financial consulting services industry is indeed a very large industry and of course it is one industry that works for businesses across different industries. If you are conversant with the trend in the financial consulting services industry, you will agree that loads of mom and pops, businesses, and start – up ventures that do not have the capacity to hire chattered accountants to handle their accounting tax concerns would naturally hire the services of accounting services providers who would usually charge them service charge.

Relatively, it is cheaper and less stressful to hire the services of accounting service providers as against employing a qualified accountant especially when you run a small business.

The truth is that, it is common to find even bigger firms contracting their accounting, tax and auditing concerns to competent financial / auditing firms because it is cost effective to do so. Another notable trend in the financial consulting services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry.

So also, the financial consulting services industry has benefited from the advancement of online and computer payroll and accounting services, with new cloud-based offerings providing a new revenue stream for operators, and attracting new customers. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.

8. Our Target Market

The demographic and psychographics composition of those who need the services of accounting services providers cuts across both small businesses and large corporations.

Rowland Pence & Co® Financial Consulting, LLC will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading accounting service firms in the United States.

As a standard and licensed accounting service firm, Rowland Pence & Co® Financial Consulting, LLC offers a wide range of financial consulting services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses of different sizes and industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around New York City – New York and other cities in the United States of America.

Below is a list of the businesses and organizations that we have specifically design our products and services for;

• Mom and Pop Businesses
• Blue Chips Companies
• Corporate Organizations
• Religious Organizations (Pilgrimage journeys et al)
• Political Parties / Politicians
• Hotels and Restaurants
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our competitive advantage

The level of competitions in the financial consulting services industry depends largely on the location of the business and of course the niche of your financial consulting services. If you can successfully create a unique brand identity for your accounting services firm or carve out a unique market, you are likely going to experience less competition.

For instance, if you are one of the few accounting services firms in your locations that also offer tax consulting and bookkeeping and payroll services you are likely going to have a competitive advantage over your competitors.

Although the competition in the accounting services industry is not just within same service providers but also other financial consulting related service providers in the financial consulting services industry. For example, it is now easier for a tax consulting firm to also handle accounting services and bookkeeping and payroll services for its clients.

We are quite aware that to be highly competitive in the financial consulting services industry means that we should be able to deliver consistent quality service, our clients should be able to experience remarkable difference cum improvement and we should be able to meet the expectations of clients.

Rowland Pence & Co® Financial Consulting, LLC might be a new entrant into the financial consulting services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified and chattered accountants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups accounting service firms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Rowland Pence & Co® Financial Consulting, LLC is established with the aim of maximizing profits in the financial consulting industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign ‘retainer – ship’ with most of our clients.

Rowland Pence & Co® Financial Consulting, LLC will generate income by offering the following financial consulting services for start – ups, NGOs and for corporate organizations;

10. Sales Forecast

One thing is certain, there would always be mom and pop shops, start – ups, NGOs and corporate organizations who would need the services of professional accounting services firms.

We are well positioned to take on the available market in New York City and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City to other cities in Nevada and other states in the U.S.

We have been able to critically examine the financial consulting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in New York City – New York.

Below are the sales projections for Rowland Pence & Co® Financial Consulting, LLC, it is based on the location of our business and the wide range of financial consulting services that we will be offering;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competitions amongst accounting service firms and other related financial consulting service providers in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard accounting service firm that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our accounting consulting firm to become one of the top 20 accounting services firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the New York City but also in other cities in the United States of America.

Rowland Pence & Co® Financial Consulting, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, Businesses, Non-Profit Organizations and key stake holders in New York City and other cities in New York.
• Promptness in bidding for financial consulting contracts from the government, religious organizations and other cooperate organizations
• Advertise our business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages’ ads (local directories)
• Attend relevant international and local finance and business expos, seminars, and business fairs et al
• Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver quality services to them
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients
• Join local chambers of commerce and industry with the aim of networking and marketing our services.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the financial consulting services industry by storm which is why we have made provisions for effective publicity and advertisement of our accounting services firm.

Below are the platforms we intend to leverage on to promote and advertise Rowland Pence & Co® Financial Consulting, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around New York City – New York
• Engage in road show from time to time to create awareness of our business
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Hourly billing for financial consulting services is a long – time tradition in the industry.  However, for some types of financial consultancy services, flat fees make more sense because they allow clients to better predict consultancy costs.  As a result of this, Rowland Pence & Co® Financial Consulting, LLC will charge our clients a flat fee for many basic services such as accounting services and business advisory services and tax consulting et al.

At Rowland Pence & Co® Financial Consulting, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to financial consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

The payment policy adopted by Rowland Pence & Co® Financial Consulting, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Rowland Pence & Co® Financial Consulting, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.

13. Startup Expenditure (Budget)

Starting an accounting services firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.

Basically, what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

This is the financial projection and costing for starting Rowland Pence & Co® Financial Consulting, LLC;

• The total fee for incorporating the business in the United States of America – $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The cost for purchase of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
• The Cost of Launching our official Website – $600
• Budget for paying at least three employees for 3 months plus utility bills – $10,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a medium scale but standard accounting services firm in the United States of America.

Generating Funds / Startup Capital for Rowland Pence & Co® Financial Consulting, LLC

Rowland Pence & Co® Financial Consulting, LLC is a business that will be owned and managed by Rowland Pence and his business partner Stanford Darlington. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 ( Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Rowland Pence & Co® Financial Consulting, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our financial consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Rowland Pence & Co® Financial Consulting, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Applications for loan from our Bankers: In Progress
• Securing a standard office facility in a business district in New York City (Renovation inclusive): Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress

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How To Write a Winning Accounting and Bookkeeping Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for accounting and bookkeeping businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every accounting and bookkeeping business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is an Accounting and Bookkeeping Business Plan?

An accounting and bookkeeping business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Accounting and Bookkeeping Business Plan?

An accounting and bookkeeping business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Accounting and Bookkeeping Business Plan

The following are the key components of a successful accounting and bookkeeping business plan:

Executive Summary

The executive summary of an accounting and bookkeeping business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your accounting and bookkeeping company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your accounting and bookkeeping business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your accounting and bookkeeping firm, mention this.

Industry Analysis

The industry or market analysis is an important component of an accounting and bookkeeping business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the accounting and bookkeeping industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an accounting and bookkeeping business may include small-to-medium sized businesses and individuals.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or accounting and bookkeeping services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your accounting and bookkeeping business via word of mouth.

Operations Plan

This part of your accounting and bookkeeping business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an accounting and bookkeeping business include reaching $X in sales. Other examples include signing on a certain number of new clients or increasing your client retention rate by a certain amount.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific accounting and bookkeeping industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Accounting and Bookkeeping Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Accounting and Bookkeeping Company

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup accounting and bookkeeping business.

Sample Cash Flow Statement for a Startup Accounting and Bookkeeping Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your accounting and bookkeeping company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written accounting and bookkeeping business plan is a critical document for any new business. If you seek funding or investors, it can help you obtain each successfully.  

Finish Your Accounting and Bookkeeping Business Plan in 1 Day!

Using partnerships and corporations to transfer farm assets

• Managing a farm
• Transfer and estate planning
• Utilizing partnerships and corporations to transfer farm assets

Quick facts

• Establishing a business entity, such as a partnership or corporation, can help with the process of transferring a farm business to the next generation.
• In Minnesota, there are two major categories of partnerships: partnerships and limited partnerships. 
• The two corporation entities available to farm businesses are S corporation and C corporation.

Developing any business entity is a complicated process. Seek assistance from a qualified legal expert and accounting assistance if you plan to explore developing a business entity.

Transferring the farm business to the next generation can be a daunting task. However, there are strategies and methods that can help simplify the process.

When operating as a sole proprietorship, it can be challenging to establish a transition plan. There are many individual assets that need to be accounted for such as machinery, equipment, livestock and land. It is difficult and time consuming to transfer separate, individual assets.

One possible solution is to establish a business entity such as a partnership or a corporation to accomplish the business transition. As members and owners of the entity, the parents are issued ownership shares or shares of stock in the entity. These shares can be sold, gifted or passed through an estate to the entering generation, over time, as a method of transferring the business. This does away with the need to transfer separate, individual assets. This also spreads out the parent’s income and thus tax obligations. It allows the entering generation the ability to acquire assets over time thus minimizing their need for large amounts of capital. 

In Minnesota, there are two major categories of partnerships: 1. partnerships and 2. limited partnerships. There are separate entities under each category which function differently.

1. Partnerships

There are two entities: general partnerships and limited liability partnerships.

General partnerships (GP)

Two or more people are required for the GP and are referred to as general partners. All partners are generally liable for all debts and obligations of the GP. There is no liability protection for their personal or partnership assets. Minnesota state law does not require a written partnership agreement. However, such an agreement outlining decision making and job responsibilities might be useful. If the name of the partnership is that of the partners (Henderson Family Partnership), the entity does not have to be registered with the State of Minnesota. The entity is taxed as a partnership, pass-through entity, with income allocated to each partner based on their ownership and included in their personal income tax.

Limited liability partnerships (LLP)

The LLP is similar to the GP with exceptions. All partners are general partners (no limited partners) but their liability exposure is limited to the assets they have placed into the LLP. Their personal assets are protected from liability exposure. The LLP is required to register with the Secretary of State in Minnesota. The LLP is taxed as a partnership, pass-through entity.

2. Limited partnerships

There are three partnership categories: limited partnership (LP), limited liability limited partnership (LLLP), and limited liability company (LLC).

Limited partnership (LP)

Two or more persons are required. There are both general and limited partners. General partners have no liability protection for their business assets but do for their personal assets. The limited partners’ assets in the LP as well as their personal assets have liability protection under the LP. The LP is required to register with the Secretary of State in Minnesota. and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LP is taxed as a partnership, pass-through entity.

Limited liability limited partnership (LLLP)

Two or more people are required. There are both general and limited partners and they have liability protection of both their LLLP assets and their personal assets. The State of Minnesota requires the LLLP be registered with the Secretary of State and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LLLP is taxed as a partnership, pass-through entity.

Limited liability company (LLC)

Requires only one person as a member of the entity. From a tax standpoint, the LLC can be taxed as a partnership pass-through entity or as an S Corporation. In addition, the LLC can afford tax savings via discounting assets and potential savings of self-employment taxes. The LLC provides liability protection much like that of a corporation.

The LLC has both members and managers. Members elect or appoint a board of directors. The State of Minnesota requires that the LLC register with the Secretary of State and the Minnesota Corporate Farm Law of Agriculture to comply with the Minnesota Corporate Farm Law.

The LLC can offer one additional level of liability protection by being registered in one of what are referred to as “protective states”. Although the list changes occasionally, some of the protective states include: Alaska, Arizona, Delaware, Nevada, New Jersey, South Dakota, Texas, Virginia and Wyoming. These states have written their LLC statutes to include an additional level of liability protection as long as the LLC members abide by all the statute rules. It is legal to register, for example, your Minnesota farm business in one of these protective states and still operate in Minnesota as you have been. You would need a contact in the state where registered. That contact would establish the entity on your behalf and at year end send you a K-1 form for income and you file your tax return just as you do now. This is a complicated process so seek expert legal help if you decide to develop an LLC in one of the protective states.

Registering with Minnesota Department of Agriculture

For the entities that are required to register with the Minnesota Department of Agriculture  for compliance with the Minnesota Corporate Farm Law, this is an annual requirement and there is a $15 fee required to file the documentations. In addition, land held in trust must also register annually with the Minnesota Department of Agriculture for compliance with the Minnesota Corporate Farm Law.

As mentioned, partnerships pay no income taxes. All profit/loss, capital gains and credits are passed through to the partners on a prorated basis, depending upon the percent of ownership. However, the partnership must file a Form 1065 informational tax return, which is due each year by April 15.

Advantages and disadvantages

An advantage over sole proprietorship is that the owners have ownership units or shares. These units or shares can be sold, gifted or passed through an estate as a means of transferring the business over time to the entering generation.

One disadvantage with a partnership, except the LLC, is that the death of a shareholder or willful withdrawal by a partner can seriously disrupt partnership operations. The partnership agreement, if put into place at time of formation of the entity, should clearly describe buy-out provisions or state how the remaining partners are protected, no matter how circumstances change.

Partnership tax laws

Partnership tax laws are similar to individual tax laws. A partnership can generally take over the depreciation schedule of contributed machinery or buildings. A partnership can claim the Section 179 depreciation expense which is passed on pro rata to the partners. Each partner can claim depreciation, which includes his or her portion of the partnership allocation plus any other personal Section 179 depreciation.

Partnership members are self-employed individuals and must pay self-employment tax on their share of earned partnership profits. Partnerships do not receive the favorable tax treatment on fringe benefits (medical, accident and life insurance, housing and meals) as do “C” corporations. However, it generally costs less to form a partnership than a corporation and partnerships can be less formal to operate.

There are two corporation entities available to farm businesses. They are: S corporation and C corporation.

1. S corporation

The S corporation offers a higher level of asset liability protection than a sole proprietorship and some of the partnerships. It must be registered with the Secretary of State in Minnesota. The S corporation is taxed as a pass-through entity with profits allocated to the stock shareholders based upon their ownership percentage. The income then shows up on the shareholders personal income tax. There is no double taxation issue.

Business operating assets can be placed into the S corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

2. C corporation

The C corporation also affords a higher level of asset protection than the sole proprietorship or some of the partnership entities. The C corporation offers longevity to the business because it is technically an entity onto itself with a life of its own. That is, people can enter and leave the C corporation and it continues on without interruption. It also affords many tax advantages regarding deductible expenses.

The C corporation however, can be subject to double taxation. The dividends paid to shareholders are taxed. If the corporation is not growing or acquiring new assets resulting in the corporation retaining earnings, those earnings can be taxed as well. Corporate tax rates are generally higher than other tax rates. Business operating assets can be placed into the C corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

One additional point that applies to both S and C corporations. Shareholders have to maintain an employer-employee relationship with the corporation. If the shareholders maintain personal ownership of what they consider corporate assets, charge corporate business expense against those assets, are audited by the IRS, they may be denied those expense deductions because the assets were owned by the shareholders, not the corporation.

A corporation is established under state law. Each state permits corporations the right to do business. A corporation consists of owners who are called shareholders. The shareholders are the basic decision making group. They elect a board of directors to act for them on most operational decisions. Majority vote governs corporate decisions. Ownership of 51 percent or more of the stock gives you control. Minority shareholders have little if any decision making control unless permitted to do so by the majority shareholders.

Once a corporation is created, it functions much as a self-employed individual might. Corporations must establish their own name and bank accounts. The corporation can become an employer, a lessor or lessee, a buyer or seller, or engage in any other business activity.

Reasons why farms incorporate 

• It is easy to transfer shares. Shareholders can gift, sell or pass through an estate, shares to others as they see fit. A majority shareholder can transfer up to 49 percent of the outstanding shares without losing control of the business.
• A corporation may simplify estate settlement in that it may be easier to value shares than individual farming assets.
• Self-employment (SE) tax can sometimes be reduced with a corporate structure. Instead of paying SE tax on all the Schedule F income as a self-employed individual would, the farmer becomes an employee of the corporation and social security taxes are paid only on wages they receive. See your accountant.
• A portion of meals and lodging furnished to employees of a C corporation are generally deductible to the corporation, but not taxable income to the employee. If lodging is provided on the farm and is a condition of employment, the home’s depreciation, heat, electricity and interest become deductible to the corporation. Remember the employer-employee relationship issue.
• Fringe benefits are deductible by C corporations. Health, accident and up to $50,000 of term life insurance is deductible to the corporation, but not taxable to employees.
• The corporation offers perpetual life, some economic efficiencies regarding capital acquisition, and provides income and social security tax flexibility. It can also provide continuation of a farm business through several generations.

Potential concerns related to the corporation

• Getting into a corporation is generally a tax-free event. Getting out is a taxable event. Don’t start a corporation unless you plan to continue it for many years.
• If the C corporation is profitable but is not growing and acquiring new assets, it can be troubled with retained earnings or excess profits. This can result in a tax obligation.
• Corporations have a different set of rules. Corporate meetings, extra record keeping, corporate income tax returns, reporting requirements, and quarterly tax estimates are part of corporate life. Complying with extra legal and regulatory requirements cost time and money each year.
• Minority shareholders have no power in directing the corporate business and can be easily “frozen out.” A majority shareholder (farming heir) can direct that no dividends be paid. Minority (non-farm heirs), may own shares that generate no income, and hence have no practical value.
• Corporate ownership of a house eliminates the use of the exclusion of gain or a sale of personal residence.
• Corporate ownership sometimes reduces independence and individual pride of ownership.
• It can be very difficult for a retired shareholder to receive any retirement income from an operating corporation. This is especially true if the retiree has no rental property, discontinues working for the corporation, and the corporation pays no dividends.

The farm corporation can be a valuable tool in tax planning and in the transfer process. However, it is a major commitment and a complex task to start a farm corporation. Before starting a corporation, make sure it fits your goals, objectives and business personality.

Self-employment tax on land, buildings and facility rent regarding entities

The US Eight Circuit Court of Appeals has ruled that if you are a member of any business entity (such as a partnership or corporation explained above); own land, buildings, or facilities that are outside that entity; and rent those items to the entity; the rental income is exempt for self-employment tax IF the rent is fair and reasonable.

This applies only to those states in the eighth circuit which include Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. With any of these laws, they are subject to change so seek legal advice on this matter.

Discounting business entity assets

An additional strategy that may be useful is the discounting of assets being placed into a business entity, such as any of the partnerships or corporations described earlier.

When you place business assets such as machinery or livestock into the business entity, you can elect to discount those assets. The main reason for discounting assets being placed into the business entity is to reduce the size of an estate in order to get below the federal and perhaps even the state estate applicable exclusion amounts. Doing so will reduce or eliminate any estate tax.

Justification for the discount is based upon lack of marketability of the assets due to a fractional ownership interest.

One disadvantage of discounting is that you have artificially lowered the basis of the assets in the entity. This can be a problem if the entity is discontinued and the assets are sold as a result. This could result in a tax obligation. If the assets are replaced due to use, this is not an issue.

Assets being discounted and placed into an entity should be appraised. If, at a future date, the entity is audited by the IRS, you can document the value of the assets placed into the entity. For machinery and equipment, simply take the depreciation schedule to the local implement or equipment dealer and ask them to put a value on all machinery. Have them put the values in writing on their dealership letterhead along with a signature and date. For livestock you can take a list to a livestock auction facility or someone who deals in livestock and would have a grasp of the values. The values should be put in writing and listed on their letterhead with a signature and date. For land, seek the help of a realtor who deals with ag land. Simply have them do an estimate or appraisal of the land, put it in writing on their letterhead, with a signature and date.

Note:  In late 2016, the Internal Revenue Service and the US Treasury Department enacted 2704 rules which drastically changed discounting rules and during which situations they may apply. If assets are transferred and then sold, discounting will definitely not apply.  If you are contemplating discounting any assets seek legal and accounting assistance to make sure you are in compliance with 2704 rules.

Business entities and maintaining homestead classification

When using a business entity for ag land ownership, caution must be used in order to maintain eligibility for the Minnesota Qualified Small Business Property Qualified Farm Business Property estate exclusion. In addition, utilizing limited liability companies (LLCs) as a business entity have new rules to comply with due to passage of the Minnesota Revised Uniform Limited Liability Company Act of 2015. The law states the land-owning LLC and its members must be the ones farming the land on behalf of the owner LLC. If the owner LLC rents the land to someone else, even another member of the LLC who then farms it personally, homestead classification is lost and therefore the qualified farm property estate exclusion is also lost. New LLCs must have complied with the new law as of August 1, 2015. Existing LLCs must have complied with the new law by January 1, 2018.

Ag land held in any trust, except a revocable living trust, as well as land in limited partnerships, limited liability limited partnerships, S and C corporations and LLCs must file documentation with the Minnesota Department of Agriculture under the Minnesota Corporate Farm Law in order to be eligible for the qualified farm property exclusion. The application must be done annually and there is a filing fee of $15 per application.

For more details on the Minnesota Homestead Classification requirements see maintaining farm land homestead classification and qualification . This is a complex area and there is a lot at stake regarding the qualified farm property estate exclusion so seek legal advice specific to your situation when establishing any entity that owns ag land.

Farm Service Agency (FSA) payments and business entities

Under the current farm bill, there are some restrictions regarding commodity program payments made to individuals versus entities. Entities that limit member’s liability exposure (all entities except the general partnership) are limited to one maximum payment limit regarding FSA commodity program payments.

This is a complicated issue. If you have any questions or concerns related to your situation, check with your FSA office for details of the program.

Caution: This publication is offered as educational information. It does not offer legal advice. If you have questions on this information, contact an attorney.

Gary Hachfeld, former Extension educator; David Bau, Extension educator and C. Robert Holcomb, Extension educator

Reviewed in 2017

© 2024 Regents of the University of Minnesota. All rights reserved. The University of Minnesota is an equal opportunity educator and employer.

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KPMG U.S. carbon emissions rose 77% in 2023

KPMG U.S.'s greenhouse gas emissions jumped in 2023.

2024 KPMG U.S. Impact Plan " report, published Monday. This figure is a 77% increase from 2022, when it reported roughly 258,000 metric tons. The report attributes this rise to the return of business travel since the COVID-19 pandemic. 

"As we have moved back to a hybrid model, welcoming our people back into our offices and at Lakehouse, we have seen our emissions rise, as anticipated," the report reads. "As part of our commitment to lower our emissions, we are taking measures to manage business travel. Through our travel policy, we monitor the purpose of travel and its duration to align with our firmwide emissions reduction strategy, focusing on areas where we can have the largest tangible impact."

The firm is using an internal carbon price tool, which charges $15 per metric ton of emissions to the business unit when travel occurs, to help control emissions from business travel.

global impact plan , and KPMG U.S. has reduced its gross emissions by 41%.

KPMG U.S.'s Scope 1 emissions — those produced directly by the firm — decreased by 19% year-over-year and decreased 58% since the base year. However, its Scope 2 emissions — those the firm causes indirectly through the energy it purchases and uses — increased 10% year-over-year, but still represented a 16% decrease since the base year.

Scope 3 emissions — those created across the firm's value chain — continue to be the U.S. firm's greatest source of emissions. In 2023, it produced approximately 440,300 metric tons, up 82% from 241,000 metric tons the prior year, but down 42% since the base year. To address this, the firm is encouraging its suppliers to participate in the CDP Supply Chain program to disclose their carbon footprint data in order to determine areas where it can reduce emissions.

KPMG U.S. also installed 1,700 solar panels at its Lakehouse headquarters in Orlando, Florida, and it plans to combine its three New York City offices into a single, more energy-efficient headquarters in Manhattan.

The report also covers the firm's progress across people, prosperity, and principles of governance.

Ernst & Young acquired Nuvalence; CliftonLarsonAllen bought Ronald Blue; Wipfli added Harbour Results; and Avantax acquired Integrated Tax & Wealth Strategies' wealth management business.

The deadline for nominations is Aug. 1, and winners will be announced at the Accounting & Financial Women's Alliance's annual Women Who Count conference.

Annual pay increased 5.0% year over year, ADP reported.

The IRS is taking applications for funds for its Tax Counseling for the Elderly and VITA programs.

The AI-driven analytics solution is specifically for accounting firms.

LogicGate released AI governance software to help entities govern and manage implementation of the technology in their organizations.

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Fact Sheet on FTC’s Proposed Final Noncompete Rule

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The following outline provides a high-level overview of the FTC’s proposed final rule :

• Specifically, the final rule provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act—for employers to enter into noncompetes with workers after the effective date.
• Fewer than 1% of workers are estimated to be senior executives under the final rule.
• Specifically, the final rule defines the term “senior executive” to refer to workers earning more than $151,164 annually who are in a “policy-making position.”
• Reduced health care costs: $74-$194 billion in reduced spending on physician services over the next decade.
• New business formation: 2.7% increase in the rate of new firm formation, resulting in over 8,500 additional new businesses created each year.
• This reflects an estimated increase of about 3,000 to 5,000 new patents in the first year noncompetes are banned, rising to about 30,000-53,000 in the tenth year.
• This represents an estimated increase of 11-19% annually over a ten-year period.
• The average worker’s earnings will rise an estimated extra $524 per year. 

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Victoria Graham Office of Public Affairs 415-848-5121

Most Companies Plan to Voluntarily Disclose Climate Rules Data

By David Hood

Almost nine in ten companies say they’ll disclose extensive carbon-footprint data even beyond what many are required to produce, according to a new study by global consulting firm Workiva.

In the US, 86% of respondents in the survey released Tuesday said they plan to voluntarily comply with all or part with Europe’s Corporate Sustainability Reporting Directive even though they don’t have to.

European Union requirements ask companies that have subsidiaries in the bloc to discuss their impact on the communities where they operate plus other details on fair labor practices. Those reporting requirements could start as soon as 2026.

The US Securities and Exchange Commission also plans to require companies to disclose their climate impact, but its significantly watered down rules for reporting on greenhouse gas emissions have been put on hold amid litigation.

Voluntarily compliance with rules—especially disclosures—isn’t normal, Andie Wood, vice president for regulatory strategy for Workiva said. Massive investor demand and competition among peer businesses are driving companies to offer the information, she said.

“There are certainly a number of companies, whilst they’re not necessarily shouting as loudly, they’re still looking to provide good data in some context or another,” Wood said. “If they are going to disclose something, it’s important that it is robust and comparable.”

The survey polled environmental, social and governance practitioners across 2,204 companies worldwide with at least 250 employees and $250 million or more in recurring annual revenue. About 660 were US-based.

The survey also showed companies have faith in the accuracy of the data they’re supplying voluntarily but are less sure about their ability to properly report information required under EU government regulations. Nearly all practitioners indicated full confidence in their own data while 83% said collecting accurate data to meet EU requirements will be a challenge to their organization.

That, Wood said, indicates how difficult it is to collect, distill and report the data as required. There’s a lot of pressure to disclose the right information in the right ways, Wood said.

“It tells us that they’re confident in what they’re putting out, but they know that there’s more that could be done and that it could be done more efficiently,” she said.

To contact the reporter on this story: David Hood in Washington at [email protected]

To contact the editors responsible for this story: Jeff Harrington at [email protected] ; Amelia Gruber Cohn at [email protected]

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