Top 3 Things To Know When Starting An Accounting Business
Accounting businesses can be extremely profitable as you provide an essential service. Accountants often get a reputation as being quite mundane and boring, but that’s all just a running joke. People don’t appreciate the work an accountant does until you remove them from the picture. Businesses and individuals alike will benefit from your accounting practice, so how do you set one up?
Below, you’ll find three main things to know before you start this business:
The legalities of being an accountant
Nobody can just decide to provide accounting services on a whim. It’s something that you need to train to become accomplished at, and it’s actually a legal requirement that you have some sort of recognized qualification. This includes an AAT qualification, which is the lowest level you need to legally be allowed to practice. Then, you could add things like ACA, ACCA, or even CIMA.
Furthermore, you also need to be registered with a supervisory body. The one you choose is up to you, but you have to register your firm if you want to carry out your services in line with the law.
Accounting software is essential
Software is your best friend when running an accounting practice. Ideally, you will get your hands on some accounting practice management software that lets you take control of your whole operation. The right software won’t just let you provide your services all in one place, it will also help you manage the rest of your business. Effectively, you have a hub where you control everything about your business. This makes it so much easier to keep track of clients, keep clients separate from one another, and manage your own bookkeeping at the same time.
There are plenty of options out there, and it’s up to you to figure out which one works best for you. The worst thing you can do is try to manage your business without any software to help you.
Ensure you are insured
A lovely little tongue twister for you, but it’s important to ensure that your insurance will leave you insured in case things go wrong. Naturally, you have the standard business insurance options relating to public and employer’s liability, etc.
For accounting firms, there is also another level of insurance that’s arguably more important. It’s called professional indemnity insurance, and it protects you if your client loses out financially because of your work. Any business that provides advice should have it, and it will cover you for things like professional negligence, loss of data, defamation, and so on. Having this type of insurance doesn’t just protect you, it protects the client. They can feel safe in the knowledge that you are insured, so if something does go wrong, they can get compensation for it.
Evidently, you have so many other considerations when starting an accounting practice. Still, these three things deserve lots of attention as they are critical elements of the startup process. Hopefully, this can start you on your journey to creating an accounting form that enjoys lots of success.