Starting an Accounting Firm: Feasibility Studies, Market Opportunities, and Vision

This presentation covers the process of starting an accounting firm, including the motivation for choosing this business, the process of generating the business idea, feasibility studies conducted, details of the product/service offered, potential market opportunities, the attractiveness of the industry, and the vision for the business. The presentation also includes references to relevant research on private company financial reporting and accounting errors.

ACCOUNTING
FIRM
STARTUP

TABLE OF CONTENT
• 1.Motivation for choice of business
• 2. The process you went through to generate this business idea
• 3. Feasibility studies conducted
• 4. Details of the product/service to be offered
• 5. Potential market opportunities
• 6. Attractiveness of the industry
• 7. Vision for your business

1.MOTIVATION FOR CHOICE
OF BUSINESS
• Working as an employee requires a
different set of skills and experience than
running an accounting firm.
• Establishing an accounting practise, like
any small business, takes a lot of effort,
but as Thomson Reuters points out,
accounting firms are now some of the
most profit margin of all small
companies.

2. THE PROCESS YOU WENT THROUGH TO
GENERATE THIS BUSINESS IDEA
• Make a list of ideas
• Pick the best concept
• Do some research on your concept
• Modify your concept
• Put your idea to the test
• Determine your market

3. FEASIBILITY STUDIES CONDUCTED
• A financial feasibility study is divided into three sections:
• figuring out how much it will cost to start accounting business
• Making cash flow projections and preparing a profit plan
• Calculating the return on investment

4. DETAILS OF THE PRODUCT/SERVICE TO
BE OFFERED
• The security of a regular paycheck and employer-provided
benefits such as social security and medicare plans are the
primary advantages of starting an accounting firm.
• Many accountants, on the other hand, resent the constraints of
working for someone else: Employees are focused on completing
individual tasks on time, whereas entrepreneurs are focused on
generating a consistent stream of revenue to keep the business
afloat.

5. POTENTIAL MARKET OPPORTUNITIES
• The potential to earn more money is the biggest and most obvious benefit
of starting accounting services.
• Adding new services keeps company competitive, attracts new customers,
and allows to capitalise on opportunities such as the baby boomer
generation's retirement.

6. ATTRACTIVENESS OF THE INDUSTRY
• Starting a financial services business from the ground up is too difficult and
expensive for a small to medium-sized accounting firm. It is concluded that
acquisition is usually more practical, though initially more expensive, and
that the most successful model is a joint venture with a financial services
provider.

7. VISION FOR YOUR BUSINESS
• This new accounting firm's vision is to be the most highly respected
professional firm in the area, where it aims to build long - standing
relationships with clients by offering personalised, dependable, and merit
services.

REFERENCES
• Clatworthy, Mark A., and Peel, Michael J., 2013. The impact of voluntary
audit and governance characteristics on accounting errors in private
companies. Journal of Accounting and Public Policy, 32 (3), 1–25. doi:https
://doi.org/10.1016/j.jaccpubpol.2013.02.005. [Crossref], [Web of Science ®]
, [Google Scholar]
• Clatworthy, Mark A., and Peel, Michael J., 2016. The timeliness of UK private
company financial reporting: regulatory and economic influences. The
British Accounting Review, 48 (3), 297–315. doi:https
://doi.org/10.1016/j.bar.2016.05.001. [Crossref], [Web of Science ®],
[Google Scholar]

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