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How can you create your own accounting firm once you have your CPA lincese?

I am currently working on my bachelors degree and I am planning on taking the CPA exam once I have meet my requirements. First I want to gain experience in my career but is there a certain requirement of experience before you make your own firm?

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Jordan’s Answer

Great questions, very entrepreneurial! You don't need a CPA if you're only offering tax and bookkeeping services. However, if you decide to provide audits or more advanced services, then a CPA is necessary. Many people enjoy successful careers as Enrolled Agents (EAs); it really comes down to what you prefer and the kind of work you love.

When it comes to starting your own firm, it's a personal decision. The right time is when you feel confident in your work quality and have saved enough money to handle a few months without income. Have you considered partnering with a CPA who plans to retire soon or buying an existing firm?

Jordan recommends the following next steps:

https://turbotax.intuit.com/tax-tips/tax-pro/ea-vs-cpa-tax-professionals-whats-the-difference/L9KRVtXpV
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Jake’s Answer

Your first step would be to pass the CPA exam. There are plenty of great resources such as Becker, which is a great study software and have private tutoring. Then, I would suggest working at a public accounting firm for a significant amount of time. This would give you a chance to build your network and build skills.

Once you are at partner level, you would have enough skills and connections to open your own private practice.
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Liliyana’s Answer

Hi, this is a great question! There is no one right answer when it comes to starting your own firm. I have peers who I graduated with who started their own firms almost immediately out of college. I know others who waited until they had more experience under their belts before they went out on their own or started up a firm with a few friends who they had worked with at a big four or other public accounting firm. I think a lot of this will depend on a few factors:
1. Are you doing tax, audit, general book-keeping, or specializing in a niche market? The more specialized the skill set - like focusing on tax credits - the more knowledge you would need on the subject to best advise your clients.
2. How confident do you feel? Having confidence in your own skills is important to come across as a reliable source that individuals can trust with their financial decisions.
3. You will also need a client base. Who are you reaching out to become your clients? Do you have friends who need a CPA or are you reaching out to businesses that are established. Once people have a CPA they trust, they may not willingly switch unless there are reasons that are driving them to switch.
Even once you start your own firm, accounting principles are always changing and you will need to continue to learn and grow. Best of luck with your career and your firm!
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Scott’s Answer

After passing the exam, I would recommend going to work for a local or regional sized CPA firm in your area. If your goal is to be a sole practitioner and have your own firm, it will be important that you gain experience in all elements of public accounting, but primarily tax compliance and accounting/bookkeeping services as those are the most common service needs for clients of a sole proprietor CPA firm. The other thing I would recommend would be getting involved in local young professional groups, many Chambers of Commerce have such groups to start building your network within your community and peer group. This will be valuable as you start trying to build a client base through your relationships.
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Victoria’s Answer

I would highly recommend to first work for a smaller CPA firm where you will get to see what it takes to run a firm. As a business owner there are a lot of things you will have to deal with. What services do you offer? How do you market yourself? There are many regulatory requirements, especially if you will be preparing financial statements and offering compilation, review, and audit services. You will also have to potentially deal with HR and hiring. Of course many other things, like software to use, billing, collections...etc. At a smaller firm you will get exposure to all aspects of the business, so that when you do start your own firm you will be better set up for success.
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