How to Start a CPA Firm (or Accounting Firm): Step-by-Step Guide to Opening Your Own Practice

To start a CPA firm or accounting practice: confirm your licensing and firm registration requirements, choose a niche and service mix (tax, bookkeeping, advisory, audit), form a business entity, set pricing and packages, build a cloud tech stack (practice management, tax and accounting software, secure client portal), get professional liability insurance, launch a professional website and Google Business Profile, and win first clients through your network, referrals and niche marketing.

Step 1: Licensing and compliance

• CPA licence (or equivalent chartered/certified status in your country) for attest/audit work and use of protected titles
• Firm registration/permit with your state board or professional body where required
• Tax preparer registrations (e.g., PTIN in the US)
• Data security requirements for taxpayer information (written information security plans where required)

Step 2: Choose a niche and services

A niche makes marketing easier and pricing stronger.

Step 3: Business setup

Entity choice (PC, PLLC or local equivalent), engagement letters, privacy policy, bank account, accounting for your own firm, and professional liability (E&O) insurance.

Step 4: Pricing

Move beyond hourly where possible: fixed monthly packages (bookkeeping + tax + advisory), tiered tax return pricing, and value pricing for advisory. (Add-ons: How to grow an accounting practice.)

Step 5: Technology

Practice management, tax software, cloud accounting platforms, document portal and e-signatures, payments, and automation (see What tools do accountants use?).

Step 6: Brand and website

Clear niche positioning, service and pricing pages, team bios, client portal link, booking for discovery calls, and Google Business Profile (see How to create a website for your business).

Step 7: First clients

Network, former colleagues, referral partners (lawyers, financial advisers, bankers), niche communities, content and local SEO (see How to get accounting clients).

Step 8: Hiring and scaling

Start with contractors or seasonal staff, document processes (checklists, SOPs), then hire for bookkeeping and client service as recurring revenue grows.

Buying an accounting practice

Acquiring a book of clients gives immediate revenue; evaluate client retention, fee quality, staff, technology and valuation (often based on a multiple of recurring revenue, with retention-based payment terms).

Starting a bookkeeping company instead

No CPA licence is needed for bookkeeping in many places, making it a lower-barrier start (see How to start a bookkeeping business).

Frequently asked questions

How do I start my own CPA firm?

Meet licensing and firm registration requirements, choose a niche and services, form an entity, set pricing, build a cloud tech stack, get insurance, launch a website and win clients through your network and referrals.

How much does it cost to start an accounting firm?

Lean virtual firms can start with modest costs for software, insurance, licences and a website; offices and staff increase costs.

Do you need to be a CPA to start an accounting firm?

Not for bookkeeping or many tax services in some jurisdictions, but attest/audit work and the CPA title require licensing.

How do new accounting firms get clients?

Through personal networks, referral partners, niche communities, content, local SEO and Google Business Profile.

What is the most profitable accounting niche?

Advisory and specialised niches (e.g., healthcare, real estate, e-commerce) often command higher fees than general tax prep.

Should I buy an existing accounting practice?

Buying offers immediate clients and revenue but requires careful due diligence on retention and fees.