Two Important Questions When Considering Buying an Accounting Firm
By: Tanya Farmer
As exciting as it is to buy an accounting firm, you will also likely have many questions during the process. You will want to know about the current clients within that firm, the employees and whether you will need additional staff, and how you are going to market your new business. These are all valid questions, and you should ask them at some point in the acquisition process. Before you do, though, there are two important questions you need to ask yourself first.
Do I Want to Run My Own Business?
The thought of being your own boss and owning a business that is all yours is certainly exciting, and it is easy to ignore the question of whether you really want to do it. However, it is a question that is worth giving a lot of thought. Think beyond being your own boss and ask yourself if you want to be responsible for the daily operations of the firm. Many people love the idea of being in control of their own accounting firm, but it is worth asking yourself if you are one of them.
When asking yourself if you really want to buy an accounting firm, you should also ask yourself what goals you have for the practice. Do you want to expand the practice, or change the direction of its services? What do you want the practice to look like in three years? Knowing the answers to these questions will help you make decisions much faster, and will make you more confident in what you decide.
Will I Be Successful?
This question is much trickier because there is never a 100% guarantee that you will be successful. To ensure success, you must enter into your new business with a high level of confidence, and hopefully a low level of risk. You must also determine specific steps that will help with your success. For example, would accounting software help you manage the office easily and more efficiently? What does your marketing plan involve? How will you differentiate your service so you can earn higher fees?
While you have to ask yourself if and how you can succeed, you should also ask yourself how you could fail. No one wants to think about being unsuccessful with their new accounting business, but it is important that you identify potential pitfalls and risks. If you can pinpoint these, you can prepare for them and work to ensure they do not happen.
Our Business Brokers in Washington Can Help
If you are considering buying an accounting firm, our Washington business brokers at Private Practice Transitions have the necessary experience to help you through the process. Our experienced brokers will answer any question you have and make sure you are also asking the most important ones. When you need to ensure that your transaction goes as smoothly as possible, call us at (253) 509-9224 or contact us online so we can assist with your purchase.