How to Start a CPA Firm

If you are a certified professional accountant, you may be considering opening up your own accounting firm. This title comes with the prestige of much education and knowledge in the field of accounting. Starting any business can be a challenge, and this holds true for a CPA firm.

Obtain CPA Certification

1. Complete a bachelor program in accounting that has at least 150 credit hours in order to meet state CPA requirements.


2. Complete the number of years experience that is required by your individual state in which you live.


3. Apply to take the test; a testing place will be mailed to you with the contact information so that you can call to set up a time and date for the test.


4. Study for the test thoroughly. You may want to consider taking courses that are designed to prepare you for the CPA exam either online or through your local community college.


5. Take the test of the scheduled date. Be sure to come prepared for the test by bringing in all of the required documentation.


6. Wait for your results to come in the mail. You must score a 75 out of 100 or better on all sections of the exam in order to be eligible to receive your CPA.

Build Your Firm

1. Examine the current market in your area to decide if it is the right time to start up a CPA firm in your area.


2. Draw up a business plan that details the amount of money that you will need to sustain the business for a short period until your business is able to generate a positive cash flow.


3. Hire an attorney to handle all of the legalities that are involved in starting a CPA firm. Although this may seem like an unwanted expense, it will save you many headaches later on.


4. Find a spot to open your CPA firm. Be sure that you take out a loan that is large enough to both purchase the location as well as cover your expenses for a period of six months.


5. Look for investors that may be willing to contribute to you firm in the form of capital or equity. This will save you money on startup costs when beginning your CPA firm.


6. Develop marketing strategies for your CPA firm. Marketing is essential to getting your business up and running. In order to gain clientele, they must first be aware that your CPA firm is available.