How to start your own accounting practice
If you’re ready to start your own accounting practice or make the change and become a freelance accountant, we take you through what you need to know.
Choose a legal structure
When you start your accounting practice you need to register with HMRC. Whether you structure your company as a limited company or a sole trader is your decision. There are benefits to both structures and different responsibilities, so you can choose which is the best fit for your practice.
Register with a professional body
If you’re not already registered with a professional accounting body then consider registering. It can help your clients gain trust in you, and therefore contribute to getting more clients for your practice. There are several major accounting bodies in the UK to choose from so you can find one that’s a good fit for your practice.
Decide on what you’ll offer
There are lots of different services you can offer that will bring value to your clients. Whether you have a specialty or want to offer a broad range of services, get clear on what you want your offering to be. You also need to decide on your pricing and how it will be charged, for example as a fixed rate or per hour.
Find your target market
It’s important to narrow down your target market so you can plan how to reach your clients. Whether you want to have a local business, specialise in an industry, or work with a specific size of business, make sure you get this clear.
Do some research on your target market and their needs from an accountant. It will help you present your offering in an attractive way and show how your business is a good fit for them.
Look for clients
The first step to reaching potential clients is to make a website for your accounting practice. Make sure it includes your services, qualifications, contact details and important information your clients need to make a decision.
To reach even more clients, you can do some marketing. From paid advertising to social media, find out more about how to market your accounting practice here.
Make sure you have insurance
Professional indemnity insurance is really important. It will protect you if a client claims your service is inadequate. Insurance can cover legal fees and compensation depending on the policy.
When you start working with clients you need to communicate clearly. Share your terms and conditions, how you expect to work together, and where your responsibilities end. Being upfront at the start will help set the basis for a good relationship with your clients.
The right technology
Choose software that will help make your job easier. Email, video conferencing tools and accounting software are all must haves for your practice.
Accounting software that automates everyday processes saving you time is a great place to start.
Bokio accounting software offers bookkeeping, invoicing and expenses management. It’s a great solution for collaborating with smaller clients, like small businesses, sole traders and freelancers. Bokio helps you save time by using automation, so you can focus on offering high value advisory services.
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