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Start your own accounting practice: 5 tips
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Start your own accounting practice: 5 tipsBy Joseph AnthonyThere's no one-size-fits-all guide to hanging out your own shingle and starting an indepen ...
There's no one-size-fits-all guide to hanging out your own shingle and starting an independent a

Start your own accounting practice: 5 tipsBy Joseph AnthonyThere's no one-size-fits-all guide to hanging out your own shingle and starting an independent accounting practice. But there are some common experiences that many CPAs share in the course of developing their own businesses. Here are five guidelines that can help you if you're considering going out on your own.On This PageRemember that the client interview is a mutual interview.It's OK to walk away from clients ? even to fire them.Have a business plan, even if it's going to change.Feel free to not try to be all things to all clients.Put time and money into your first hire.Remember that the client interview is a mutual interview.The initial interview with clients should be a two-way street. Sure, they want to meet you to decide whether to hire you. But this is also your opportunity to decide whether you actually want them as clients."This has probably been the million-dollar question for me, figuring out how to determine whether someone is going to be a good fit in my practice or not," says Steven Pribramsky, senior partner with the accounting firm of Pribramsky & Zuelch. Join the Microsoft Professional Accountants' Network Get training, support, product and practice info. to help you better serve your clients. Learn more. Pribramsky, whose firm has offices in Key West and Fort Lauderdale, Fla., says that he wants to know what kind of relationship potential clients have with their lawyers, bankers and other financial professionals, as well as why someone is looking to leave their current tax pro."I want to know that the individual has good relationships, and whether they've let their tax pro know they're not happy or if they're not being upfront," he says.Top of pageIt's OK to walk away from clients ? even to fire them.It can be difficult to decide against taking on a client, especially for accountants who have just set out on their own and have more time and expenses than they have business. It takes some courage to say no to a potential client when you're starting out, but experienced CPAs say you have to pay attention when you get the sense that someone is not the right fit for your practice. That doesn't mean they aren't necessarily good people and good clients for someone else. It just means they aren't going to be good clients for you.Having the confidence to say no to a client means being willing to let go of clients that turn out to be a bad match. "Probably one of the greatest days of my life was at the end of my first year in business, when I withdrew from my third biggest client," says Pribramsky. "It had been very difficult from our perspective and the client was very valuable to us financially, but I just knew the relationship wasn't going to get better. It (letting the client go) was the best thing I ever did."Top of pageHave a business plan, even if it's going to change.The same advice CPAs often give to their clients applies to them, too. A business plan that puts in writing what you want your business to be, what your financial and personal goals are, how you want it to grow, and what your measures of success are, is going to help you focus.Joycelyn Stone, a CPA and president of J. Stone & Associates in Chicago, had clients from the day she first hung out her own shingle four years ago, but says that in retrospect she could have been even more successful if she had done a business plan even before starting her practice. "I just think it helps to spell out for you what your goals and objectives are," she says. "Otherwise, you can get too busy just doing the work to figure out what kind of work you really want to have."Top of pageFeel free to not try to be all things to all clients.CPAs can offer a wealth of ancillary services to clients. While services that enhance your role as an accountant can help develop and solidify the client relationship, selling other products can prove distracting or leave you stretched too thin in your start-up phase.Many CPAs initially choose to restrict the types of services they offer. Pribramsky, for example, doesn't do returns for nonprofits or Form 5500 work, and doesn't sell securities or other financial instruments. Other tax pros suggest seeing how your practice develops and listening to your clients about what types of other services they'd like from you before you decide to expand your offerings."Everyone looks at accounting services as a necessary evil," says Stone. "So within those core accounting services, I think it makes sense to look first at how you are going to add value in terms of having your clients know that you are able to do compilation statements, do reviews, help clients find lenders, and the other types of value-added offerings that make us a key part of our clients' success."Top of pagePut time and money into your first hire.An accountant going solo might start with no employees. I know successful CPAs who choose to maintain small boutique practices and have gone years without hiring anyone.But most CPAs wind up at least hiring support staff. Finding the right employee for answering the phones, assembling tax packages, burning client CDs or greeting visitors ? or all of the above ? isn't easy."Hiring is the single biggest challenge you are going to have," says Pribramsky, who has 13 employees. "I think too many young accountants put too little into that front person. If you have an unfriendly or non-communicative person, I think you have a problem, because that person is often the first direct interaction a client has with your firm."With good employees at a premium, it can make sense to try to pay more than the standard in your area for someone who is an above-average hire. New employers typically turn to newspaper classifieds and online job banks like Monster.com when looking for people. Established CPAs also suggest letting other professionals in your area know that you're looking to hire someone and putting a listing in the "Wanted" section of local or state publications geared to accountants.Pribramsky's favorite source of employee leads: His best clients. "I ask my favorite clients, who do you know who is looking for a new job and who is just like you?" Joseph Anthony Joseph Anthony is a tax professional in Portland, Ore., who writes about finance and tax issues affecting small businesses.
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