However, setting up an accountancy practice involves far more than technical knowledge alone. From legal structure and premises to pricing, marketing and technology, there are many factors that influence long-term success.
At TaxAssist Accountants, we’ve supported hundreds of accountants in starting, growing and ultimately selling their own practices over the past 30 years. This guide brings together our experience to help you understand the key steps involved in starting an accounting business - and the options available to you.
What You Need to Consider When Starting an Accounting Business
This guide covers the essential building blocks of a successful accountancy practice:
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Choosing the right legal structure
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Meeting compliance and regulatory requirements
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Deciding where to operate your practice
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Defining your target market and services
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Setting profitable fees
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Attracting and retaining clients
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Cross-selling additional services
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Employing and managing staff
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Using accounting software and technology
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Funding your practice
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Buying an existing practice or clients
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Starting an accounting business through a franchise
Choosing the Right Legal Structure for Your Accountancy Practice
One of the first decisions you’ll need to make is how your accounting business will be structured. Common options include operating as a sole trader, limited company or partnership, each with different tax, legal and compliance implications.
You’ll also need to ensure you:
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Hold the appropriate practising certificate
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Register with HMRC
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Comply with anti-money laundering regulations
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Arrange professional indemnity insurance
Failing to address these requirements early can delay your launch and create unnecessary risk.
Where Should You Run Your Accounting Practice From?
Your premises play an important role in client perception, marketing and scalability. While working from home can reduce costs initially, many successful practices choose a high-street office or shopfront.
A visible premises:
- Promotes your business 24/7
- Supports local SEO and digital marketing
- Builds trust within the local community
- Provides space for staff and client meetings
For many TaxAssist franchisees, a shopfront location is a key differentiator that drives walk-in enquiries and brand recognition.
Defining Your Target Market and Services
When starting an accounting business, focusing on profitability rather than turnover is crucial. Many practices achieve strong margins by working with:
- Small businesses
- Sole traders
- Landlords
These clients typically require repeat compliance services and ongoing advice, allowing processes to be systemised and delivered efficiently.
Having hundreds of smaller clients rather than a handful of large ones can also reduce financial risk if a client leaves.
How Much Should an Accountant Charge?
Pricing your services correctly is critical to long-term sustainability. Whether you offer fixed monthly fees or charge based on time spent, your pricing should reflect:
- Local market rates
- The value of your expertise
- Your cost base and profit targets
Many modern practices favour fixed-fee, monthly direct debit models to improve cashflow and client retention.
How to Attract New Clients to Your Accounting Practice
Winning new clients is often the biggest concern for those starting an accounting business. A successful practice cannot rely solely on referrals.
Your marketing strategy should include:
- A clearly defined unique selling point (USP)
- A professional, SEO-optimised website
- Local digital marketing and Google visibility
- Networking and referral partnerships
- Consistent branding and messaging
Marketing requires ongoing investment of time and budget to maintain a reliable flow of enquiries.
Expanding Your Services Through Cross-Selling
Offering additional services to existing clients is one of the most effective ways to grow profitability. As a trusted adviser, you’re ideally placed to introduce complementary services.
At TaxAssist Accountants, this includes Financial Planning by TaxAssist, enabling franchisees to:
- Introduce clients to qualified financial advisers
- Earn introducer fees
- Strengthen client relationships
- Increase loyalty and referrals
This approach helps position your practice as a true one-stop shop.
Employing and Managing Staff as Your Practice Grows
Most accountants start alone, but growth quickly creates pressure on capacity. Employing staff or outsourcing allows you to scale while maintaining service quality.
As your team grows, consider:
- Delegating compliance and admin work
- Training and professional development
- Retention, benefits and incentives
- Freeing up your time allows you to focus on strategy, growth and client acquisition.
Using Technology and Accounting Software
Technology is central to modern accountancy practices. Cloud accounting, automation and digital tax compliance are now essential rather than optional.
Forward-thinking practices use technology to:
- Improve efficiency and margins
- Deliver better client experiences
- Scale advisory services
The most successful practices see technology as an opportunity, not a threat.
Funding Your Accounting Business
Starting an accounting business requires funding for setup costs and early-stage cashflow. New practices often make losses in the first 12–24 months while building their client base.
Funding may be required for:
- Premises and fit-out
- Marketing and systems
- Working capital and personal income
A detailed business plan is essential when approaching lenders.
Buying an Existing Accountancy Practice or Client Base
Buying an established practice or block of fees can provide immediate income and infrastructure. However, due diligence is essential to ensure a good strategic fit.
Always review:
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Financial performance
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Client retention risk
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Staff and systems
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Legal terms of sale
Professional advice is strongly recommended.
Is an Accounting Franchise the Right Way to Start?
An accounting franchise offers an alternative route to starting an independent practice. Franchising combines self-employment with the support of a proven business model.
With TaxAssist Accountants, franchisees benefit from:
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A recognised national brand
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A proven operating model
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Ongoing training and technical support
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Marketing and lead generation
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Peer support from other franchisees
While no route guarantees success, franchising consistently delivers higher success rates than traditional start-ups and offers a structured path to building a profitable accounting business.
