Starting an accounting firm
How to start an accounting firm.
Starting an accounting firm: what it costs, what you can earn, the licensing you need, and the step-by-step path from $0 to your first paying client.
What you need before day one
Nobody dreams about being an accountant. They dream about the business it builds. A practice with monthly retainers and clients who stay for a decade is one of the most quietly profitable things you can own, and you are reading this because you've done the math on someone else's salary and noticed the partners are not working twice as hard for ten times the pay.
Here's why it works. Every business needs books, every business hates doing them, and once a client trusts you with their numbers they almost never leave. You don't need a storefront. You don't need foot traffic. You need a license where the work demands it, a clean engagement letter, and the discipline to send invoices on the first of the month without flinching.
Most new firms fail at one thing. Pricing. They look at their old salary, divide by 2000 hours, and quote a rate so low they have built themselves a job, not a firm. If that voice in your head is already telling you 'they'll go to H&R Block for less,' the guides below are the unlearning. The license, the entity, the software, the website, and the budget. In that order.
Michal Mujgoš, mujgos.com More about Michal → - $3k–$15k Startup cost Entity, hardware, tax software, E&O insurance, website
- 2–6 weeks Time to first $ Faster if you already have a few referrals queued
- Often required Licensing CPA license for attest work, plus E&O insurance
- Pricing the first engagement Hardest part Price to the complexity, not the hours
Honest check: is starting an accounting firm for you?
Yes, keep reading if
- You know the work, or you can hire a CPA who does
- You're ready to register, license, and insure properly. No shortcuts.
- You can put $3k–$15k into the business (entity, hardware, tax software, E&O insurance, website), or finance it
- You'll answer the phone yourself for the first 6–12 months
- You're done waiting for someone else to give you a raise
Skip this and read something else if
- You're chasing a "passive income" pitch
- You want a six-figure salary in month one
- You want to skip the license and "see how it goes"
- You expect leads to roll in without picking up the phone
- You want everything outsourced from day one
What you can realistically earn from an accounting firm
Your own billable hours plus a few monthly retainers.
Staff doing the work while you sell and review.
Recurring advisory, a niche brand, and a manager running ops.
Ballpark monthly ranges for a typical US operation, worked through in the profit guide. Your market and pricing move these.
Your path from $0 to your first call
The order to actually do this in. Each step links a deep-dive guide.
- Know your numbers Startup budget, monthly runway, the minimum monthly retainer you need to break even. Write it down before you spend a dollar. Read the guide →
- Register & get licensed Form the entity, sort the CPA or firm permit where needed, and put E&O insurance in place. Read the guide →
- Tool up Tax software, practice management, secure portals, and E&O cover. Budget $3k–$15k, plus about six months of living expenses. Read the guide →
- Brand & logo Pick a name, a niche, and a simple logo before you print the first business card. Read the guide →
- Launch a website that converts Where local businesses vet you before they email. This is the one thing we build for you on day one. The rest you do yourself with the guides. Get your website →
- Open the doors Pick your engagement model, your service tiers, and take your first paying client. Then graduate to the grow track. Read the guide →
How working with us actually goes
No 12-month contracts, no jargon, no lock-in. You pick what you need, we do the work, and you keep the keys.
- 01
Diagnose
Free 30-minute call. We figure out where you really are and what the next dollar of effort should go to. Honest read on whether we can help. If we can't, we'll point you at someone who can.
- 02
Plan
We build your full business plan with you. Numbers, target market, launch sequence, what to spend and what to skip. The thing you don't write yourself because you're busy.
- 03
Build
We build your website. Fast, clear, conversion-focused. The one thing you should not DIY when you're trying to take your first call this month.
- 04
Grow
Ongoing playbooks and articles you can read in five minutes, plus a Slack thread or call when you're stuck. You run the business. We're the brain you call when something's off.
Starting an accounting firm: guides
Written by Michal Mujgoš -
How to start an accounting firm step by step
The exact launch order for an accounting firm: PTIN, then entity, then EFIN, then software, then your first engagement letter. Each step gates the next.
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How much do you need to start an accounting firm
How much it costs to start an accounting firm: a home-based solo opens for $3k to $15k, and the real number to plan for is 6 months of living expenses.
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How do I set up and register an accounting firm
Set up and register an accounting firm in the right order: PTIN, EFIN, LLC and EIN, state board firm permit, then engagement letters and E&O.
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Buying equipment and supplies for an accounting firm
What to actually buy for an accounting firm: the software stack runs $200 to $600 a month and matters ten times more than the desk or printer.
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Best way to start and get into an accounting firm
The best way to start an accounting firm: pick one niche, sell monthly bookkeeping retainers, and land 10 clients before you quit your job.
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How much profit can an accounting firm make
How much profit an accounting firm makes: solo owners net $80k to $200k, and margin lives in realization rate and recurring retainers, not headcount.
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How to make a logo for an accounting firm
How to make an accounting firm logo that reads as trustworthy: a wordmark over a clever icon, two colors, and files that survive a fax and a favicon.
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How to make a website for an accounting firm that books calls
Most accounting firm websites are digital business cards that book nothing. Here is what the ones that turn visitors into booked calls do instead.
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How to start an accounting firm: the ultimate guide to the four decisions that make it a business, not a job
Most accounting firms are jobs, not businesses. The four decisions that change that, made before your first client: credential, pricing, niche, and capacity.
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Identifying the ideal locations for an accounting firm: pick the niche before the street
The ideal accounting firm location is a niche and a tax jurisdiction, not a storefront. What an office costs ($18 to $40/sq ft) and when it earns its keep.
Don't reinvent the wheel.
Copy what works.
We build your website for you in 7 days. You own all of it, and most changes go live within 24 hours.
Get Your Website →Common questions about accounting firms
The questions people ask us most before they start.
How much does it cost to start an accounting firm?
A home-based solo practice opens for roughly $3k–$15k: entity filing, hardware, tax software, E&O insurance, and a website. The bigger number is runway, so plan about six months of living expenses on top. An office and staff turn it into a $50k-plus launch.
Read the full guide →Do I need a CPA to start an accounting firm?
For bookkeeping, tax prep, and advisory work, often no. For audits, reviews, and signing attest work you need a CPA license and usually a firm permit. The setup guide walks through it.
Read the full guide →How much profit can a new accounting firm make?
Once the client book is built, a solo, home-based firm typically nets $80k–$200k a year at a 55%–80% margin. Retainer revenue ramps slowly, which is why six months of runway matters. Margins are strongest on monthly retainers and advisory, weakest on one-off returns done at competitive rates.
Read the full guide →What software and gear do I need on day one?
A practice management tool, a tax package, accounting software, secure document portal, and a phone. You do not need a fancy office, you need clean workflows.
Read the full guide →Do I need an office to launch?
No. Most new firms run from a home office or a shared space. Pick the city or niche you want to serve before you sign any lease.
Read the full guide →Do I need a website before my first client?
Yes. Even referrals search you before they email back. A clean site that names the services and the niche closes more than a referral alone.
Read the full guide →