Many certified public accountants (CPAs) end up owning and operating their own private practice. Those who want to own and run their own practice have two options: They can start from scratch by purchasing or renting office space, or they can buy an accounting firm, move in, and start running the business. Both options are attractive and hold many benefits for any CPA. However, we’re of the mind that buying an existing accounting firm is a good idea. Below, we’ll explain some compelling reasons to buy an accounting firm rather than start one up on your own.
It will take time to realize the kind of growth you want for your accounting firm when you start out on your own. Before even seeing growth, you will also have to create systems so your firm can handle the expansion, such as additional staff and updated technology.
All these considerations are why most small businesses operate for years before they see their first profitable quarter. If you acquire an accounting firm, on the other hand, those systems are already in place, and you can continue to grow your business to its fullest potential.
You may already be working for a CPA firm and have gained tremendous experience and have learned the good habits that will greatly help you when running your own firm. If you’re ready to immediately put those good habits and skills you’ve accumulated to use, acquiring an existing firm is the fastest option. Instead of feeling like your skills and experience are going to waste, buying into an accounting firm allows you the independence and freedom to run the firm according to your vision, which also allows you to play to your own strengths.
Some of the best CPA firms do not only offer accounting services but provide other features that are useful to their clients, as well. Services such as wealth management and estate planning often line up well with accounting services. If you start your own business, it will take some time to get CPA clients, and much longer before you can start offering additional services. However, when you buy an accounting practice that already has the capacity to offer these services and the client base to utilize them, this can create synergy and give you an edge over the competition.
One of the hardest aspects of running a business for any professional is finding the high-quality staff that will help them take their business to the next level. Another reason to buy an accounting firm is the staff is already mostly in place for you. If you are starting your own business from the ground up, you will also run into the difficulty of finding quality CPAs. However, when buying an existing accounting firm, it is crucial to find background information on the staff members and gain a feel for the experience and talent they will bring to your firm. When you can find an exciting firm that already has the great staff you need, it can help take your business to the next level.
Purchasing an existing accounting firm certainly does have many benefits, but the process is still extremely complex, and one small mistake could cause a great deal to fall through. If you are ready to purchase an accounting practice, our Washington business brokers at Private Practice Transitions can help. We know how to locate great accounting firms for sale, and we will help you secure the best deal possible so your business starts out on the right foot. Call us today at (253) 509-9224 or contact us online to learn more about how we can help.