I Want to Start an Accounting Firm — What’s the First Step?

I Want to Start an Accounting Firm — What’s the First Step?

If you are planning to start an accounting firm in the United States, you probably already have a bit of knowledge about the workings of the Internal Revenue Service (IRS). But, there are a few more things you should take care of before you set off on your own in the accounting world.

Take care of technicalities, like EIN.

Just as you have to file a tax return each year, you also have to obtain an Employer Identification Number (EIN) to set up your accounting firm.

The IRS is going to need a way to identify your firm from all the others and to make sure you pay business, employee, and other taxes as required by law of all taxpayers. Banks, credit unions, and brokerage houses will not open accounts for corporations without an EIN. In addition, subcontractors are typically required to have an EIN, which will be used by the primary contractor to report to the IRS all business income paid, according to Investopedia.

The EIN can be obtained online and the applicant must have a US Social Security number. The nine-digit number never expires and it will never be reissued to another business. this way, your business’s identity will be unique and protected, much like a Social Security number but for a corporation.

Make a business plan.

While many well-known businesses rose to success without having anything in writing about the owner’s goals, it is always useful to have a guide highlighting your motivations and the efforts that you expect to undertake to make your business what you want it to be.

The first things that come to mind when creating a plan and putting it into action are the needed communication tools, ranging from having a mailing address set up with the US postal service as well as an email address. You might also inquire about deals with a private delivery service on postage as regular service has become a political football during the novel coronavirus pandemic.

Of course, you will need to stock up with plenty of pens and paper, stationery and envelopes, staples, and invoice paper, for correspondence, marketing, and advertising.

Should you offer limited-time free shipping or coupons as incentives? Gift cards or 10 percent discounts for early clients? Some things you should have for sure are quality tax envelopes and other accessories for your accounting business. Companies like The Mines Press offer quality paper products that take your documents to the next level

Having a classy tax return envelope will set you apart from other competitors, and your clients will appreciate the added detail.

Find the right staff and promote professionalism.

In writing a business plan, you have no doubt thought about the number of staff members to employ at the beginning and, if things go well, as the company grows. Will you need additional accountants with various specialties? In-house or outside legal counsel? Secretaries and other support staff?

These days, there is a good chance your staff will be wearing face masks to protect themselves and others from the spread of the conronavirus. That might get you thinking whether your company should have any kind of dress code in addition to a mask requirement. This can be a tricky issue as no matter what direction you go, formal business— jacket and tie, blouse and skirt— or stylish casual, individual choices are at stake. Chico’s can meet your employees’ personal attire tastes, from men’s vests and women’s blazers to long jackets and coats. Women’s suit jackets and dresses and plenty of other merchandise are in stock.

The popularity of dress jackets for women is a given. Point your employees in the right direction with professional attire, and you’ll give clients a positive image of your business.

Getting your accounting firm up and running is surely not going to be as easy buying a new shirt, suit jacket, or blazer but if you start with the basics outlined above, the next steps should fall into place.