Starting a freelance accountancy firm
Qualified accounts have a choice of routes for their career. The most popular avenues are joining a big corporate company or attaching to the finance department of a smaller company. Alternatively, there is the option of starting a freelance accountancy firm and working for yourself.
There are many benefits to having your own company, including creative freedom and flexible working hours. However, being self-employed also means more responsibility and the challenge of maintaining a healthy workload while navigating uncertain economic times.
To give your new venture the best chance of success, you should put together a comprehensive business plan before you take the plunge. Ensure that these essentials are the foundation of your freelance accountancy firm.
Qualifications
Firstly, make sure that you have the necessary qualifications. If you’ve only got your AAT, consider progressing to the next level to gain the title of chartered accountant. This will make you more trustworthy to clients as it connects you to a professional body in the industry.
It is worthwhile having your qualifications clearly displayed in your workspace, alongside testimonials from clients to boost trust.
Insurance
All businesses face risks that could endanger profitability. Examples include operational issues, a competitor launching a rival product and the potential introduction of new regulations and legislation.
Adequate financial support as well as specialist accountants’ insurance might be useful for safeguarding your business from unforeseen circumstances, errors or negligence claims against you.
You should also look into getting the right kind of property insurance for your workspace.
Financing
Running out of money was one of the most common reasons for start-ups’ failures worldwide in 2022, so solid financing is vital to business success.
Look into the different financing options for your company, and the pros and cons of each. Options include business loans, backing from investors and putting up the capital yourself. Whichever route you choose, ensure that you’re able to keep up with any payments and survive the initial no-profit period.
The best way to make certain that you stay in the black is to establish a clear budget. Note down all of your outgoings and create annual projections to check that your funding is sufficient. Be pessimistic with your profit estimates and include a financial cushion so that you have flexibility in the event of unforeseen circumstances.
Promotion
Once you’ve got yourself set up, you’ll need to focus on promotion. This is key to generating a good client base, especially in the first few months and years following the launch of your accountancy firm.
Working in the digital age means that you’ll need an online presence. Most important is a professional website that outlines your services and why people should trust you, and includes your contact details. Social media accounts will also be beneficial, to verify your business as an active organisation and to help you reach more people with minimal effort.
Don’t underestimate the power of word-of-mouth recommendations, either. These are an effective way for burgeoning businesses to find new clients in their area and cement themselves in the community. Hand out business cards to your existing customers and encourage them to spread the word!
