You’ll need a little more than just a talent for numbers to start your own accounting practise. In this article, we share insights into the ideal actions to follow for a successful enterprise, from knowing your target market to creating company goals and making sure the proper legal documentation is in place.
What does an accounting firm do?
An accounting firm manages other people’s accounts, both personal and professional. In order to assist businesses in tracking and managing their money successfully, accountants are educated in summarising, analysing, and reporting annual income and spending.
What qualities does an accountant require?
To become a highly proficient accountant, you will require a specific set of skills. While preparing thorough and understandable reports for customers, you’ll need to be able to properly summarise and analyse financial data. To qualify as an accountant, you will need to complete some basic training, but you also need the following other skills:
- solid writing abilities
- ability to communicate clearly
- critical reason and analysis
- time management and planning
- an eye for detail
How to become qualified as an accountant
Making sure you are qualified for the position is the first step on the path to starting your own accounting firm. Here is a brief rundown of your required qualifications:
Obtaining an accounting diploma, bachelor’s degree, or master’s degree is the first requirement before you may apply for a practising licence. The ideal choice is a bachelor’s degree, which will enable you to apply for admission to Australia’s top professional accounting organisations.
Depending on the university you select, a bachelor’s degree in accounting can be earned in 3 or 4 years of full-time study at the cost of around $11,000 annually. You can take a variety of online accounting courses from the convenience of your home, which will make your life a bit simpler.
The two-year Master of Professional Accounting will cost you about $14,000 each year of full-time education if you already hold an undergraduate degree.
Join an organisation for professionals in accounting.
The New Zealand accounting sector is governed by Chartered Accountants Australia and New Zealand (CA ANZ). A Bachelor of Accounting degree is required for CA ANZ accreditation.
Make a licence application.
Before beginning to provide accounting services to the general public, you will require a Professional Practice Certificate (PPC). A liability insurance policy is required in order to apply for this through the board with which you are registered.
Naming your company.
Your company’s success may be significantly influenced by the name you choose. Here’s a fast how-to on selecting a name that accurately describes the products or services you offer while also sounding contemporary.
- Choose a niche for yourself. Will you simply focus on tax accounting?Or will you also provide services in auditing or investing?
- Think about names. Make a list of potential names that accurately describe your business and its offerings.
- Examine the names on your list to find any that are memorable, catchy, and simple to speak and spell.
- Investigate your rivals. Verify if there are no rivals with names that are the same or sound similar.
- Perform market research. Ask others who work in the field or who could become clients for their opinions on the name you have picked.
- Check the domain name is available for the business name you have chosen.
Identify your business structure.
Registering for an Australian Business Number is necessary in order to turn your business idea into a legal organisation (ABN). Your company will be recognised by the government using this special number. It can be used on an invoice, tax payments to deduct the GST, or to register for a domain name.
You’ll need to know how you want to structure your business in order to achieve this. Depending on the size of your company and how you envision it growing in the future, you can select one of the following structures:
- Sole proprietor. You will be running the company by yourself as a sole trader. You’ll be able to take complete charge of corporate operations, but you’ll also be fully liable for any debts that your firm accrues.
- If you’re considering starting an accounting firm with a friend or colleague, you must register as a partnership. This will offer you and your partner an equal say in how the company is run and how much money it makes.
- Companies are better for those who wish to start a sizable accounting business; however, they are more difficult and expensive to set up than other types of organisations. A firm is often held by several owners, and the financial burden is divided between them.
It’s important to remember that as your firm develops and flourishes, you may alter its structure. Consult a small company lawyer for guidance if you’re still unclear about the proper business registration procedures.
Construct a business strategy.
Even though it’s not legally required, a business plan may be a helpful tool. The advantages of drafting a business plan include better market comprehension, financial insight, and goal-setting.
Here are some basic components for your business strategy:
- Description of the business. Describe the functions and revenue sources of your company.
- Product information. Analyse the services that your company provides and how it stacks up against the offerings of your rivals.
- Market investigation. Decide who you want as a consumer and how you’ll entice them to your accounting firm.
- Describe your marketing plan and how you plan to increase your consumer base.
- Discuss the startup expenditures for your accounting firm, the fees you charge, your expected future revenues, and your rates.
- Future-oriented goals should be set with a clear plan for how to achieve them.
Considering how you will finance your company.
You will have to make an initial financial investment when beginning an accounting firm. Fortunately, there are several funding choices accessible, ranging from small company loans to personal loans.
Before asking for any form of loan, be certain that you can afford the repayment schedule as well as any additional fees or charges.
Anticipated Costs
Hardware and software
A significant portion of your first costs will go toward purchasing the necessary hardware and software. This will be particularly important if you plan to launch your accounting practise from home.
Furniture
If you’re starting a business from home or giving your employees workspaces, you should make an investment in some high-quality office furniture. Desks, office chairs, bookcases, and file cabinets make up the majority of the furniture in a basic accounting office.
Laptop and printer
Running your accounting firm effectively requires a computer or laptop. These basic tools will help you organise and analyse financial data as well as keep track of client information.
Software for accounting
Consider purchasing accounting software, like QuickBooks or Xero, to make your life easier. Both can help with data analysis and forecasting, thereby reducing human error.
Website
You might want to spend money on a website to give your accounting company more credibility. A web host and domain name are also necessary for this.
Organise the legal aspect of your company.
It’s crucial to comprehend your legal rights and duties before opening a shop, as is the case with any new firm. Consideration of the legal paperwork you must prepare is a good place to begin. You may either complete this on your own using internet templates or have a lawyer complete it for you.
The following is a list of some crucial legal papers you must have in place before starting your accounting business:
- Contract of Employment. Every new employee you recruit must have an employment agreement in place. This will detail an employee’s responsibilities, rights, and privileges while working for your organisation, as well as their tasks, paid time off, and pay.
- Site disclaimer. To shield your business from legal risk, your website should have a Website Disclaimer.
- Privacy policy. How you will gather and keep your customers’ private information is described in a privacy policy. The information can take a variety of forms, including name, contact details, and credit card information.