Launching your own tax firm gives you the chance to create a business that fits your vision. Whether you’re transitioning from another firm, corporate position, or starting fresh out of school, taking the right steps can set you up for long-term success.
This guide will help you make key decisions, choose your clients, and build your team. By following these strategies, you can create a sustainable firm without burning out.
Step 1: Make the decision—Are you ready?
Before diving in, consider whether starting a firm is right for you. Ask yourself:
- Have I gained enough experience? Many accountants start their firms after working in public accounting or industry.
- Do I want to focus on a specific area? Consider specializing in working with only small businesses, expanding a tax planning practice to offer advisory services, or working with a particular industry.
- Am I prepared to grow my business? Running a firm involves more than just tax—it also means finding and retaining clients.
- Have I figured out how to follow the rules? You’ll need to register your business, obtain the necessary licenses, and meet all legal requirements.
Step 2: Selecting your clients
One of the biggest mistakes new firms make is trying to serve everyone. Instead, focus on a niche or specific type of client, such as:
- Small business owners: Bookkeeping, tax, payroll, and advisory services.
- Startups: CFO services, financial modeling, and fundraising support.
- Construction and trades: Job costing, cash flow forecasting, and compliance.
- Medical and dental practices, or other niches: Specialized tax deductions, payroll, and financial management.
Step 3: Avoiding overwork and burnout with the right staffing model
Many accountants get overwhelmed by trying to handle all the work themselves. To build a supportive team, consider outsourcing for bookkeeping, taxes, or administrative tasks before hiring full-time staff. If they are offshore, be sure to meet your regulatory and compliance rules.
You’ll want to hire as efficiently as possible to keep costs manageable, but also realize you can’t do everything yourself. For example, do you need to hire a virtual assistant, bookkeeper, or junior accountant to handle day-to-day tasks? This allows you to focus on higher-value client work.
You also want to know your limits. Sure, busy season is busy, but tax season is year-round. Set yourself fixed work hours, schedule breaks, and decline to work with clients who aren’t a good fit.
Finally, power up with automation to streamline your workflow. For example, you can automate invoicing, client onboarding, and email follow-ups to reduce manual work.
Your first 90-day action plan
First 30 days:
- Register your business, get insurance, and ensure compliance.
- Set up tax software such as Intuit® ProConnect™ Tax, Lacerte® Tax, or ProSeries® Tax, QuickBooks® Online, and other workflow tools, such as Intuit Tax Advisor, which is now a part of ProConnect Tax and Lacerte.
- Define your services and pricing structure.
- Build a simple website and LinkedIn profile.
Day 31-60:
- Start networking with potential clients.
- Launch an email marketing campaign using Mailchimp; it is integrated with QuickBooks Online.
- Take on a few clients and refine workflows.
Day 61-90:
- Begin outsourcing low-value tasks such as bookkeeping and admin.
- Automate invoicing, client reminders, and follow-ups.
- Focus on scaling while maintaining a work-life balance.
Final Thoughts: Building a thriving firm
Starting your own firm is a significant endeavor, but by targeting the right clients, leveraging technology, and building a strong team, you can create a successful and sustainable business. Remember to work smarter, not harder, and prepare for the long haul.
