Starting an Accounting Firm in Colorado: A Guide to Certifications, Business Structures and Marketing Strategies

Starting your own accounting firm can be intimidating, but with guidance and a solid plan, the sky is the limit. Here are a few tips and tricks.

Andrew Deen //April 20, 2023//

Starting an Accounting Firm in Colorado: A Guide to Certifications, Business Structures and Marketing Strategies

Starting your own accounting firm can be intimidating, but with guidance and a solid plan, the sky is the limit. Here are a few tips and tricks.

Andrew Deen //April 20, 2023//

Starting a business can be an intimidating proposition. However, if you’re committed to bringing your vision to life, you’re more than capable of pulling it off. If you’re ready to take the first step in starting an accounting firm in Colorado, having some guidance can make the process easier. 

READ: What Are the Safest Industries to Start Your First Business in 2023?

Make sure you meet all of the requirements to start an accounting firm in Colorado

When starting an accounting firm, there are many requirements that you’ll have to meet. Most importantly, there are certain certifications that you and your team may need to operate your business. A failure to get these certifications could result in accounting scandals that ruin your business entirely. 

One of the most popular certifications for accountants is the certified public accountant (CPA) certification. While you’re not required to have one when opening an accounting firm, not having this certification will limit the types of services that you’re legally allowed to offer. 

After meeting federal requirements for the types of services you wish to offer, it’s time to explore Colorado laws. For more information on Colorado-specific requirements and resources, visit the Colorado Department of Regulatory Agencies website and check out the Colorado Secretary of State’s checklist for businesses.

Decide how you want to start your business

Diving into a new business can be scary. In fact, many people forego their entrepreneurial dreams for the simple fact that this leap of faith can be so intimidating. However, while it may be better for some to go full-time with their accounting firm immediately, other options can make the transition less jarring. Some options for starting include:

Starting part-time

This allows you to make a softer transition into being a business owner. While offering services on a part-time basis, you have the opportunity to continue working another job until your business picks up enough to make the full-time transition. 

Buy a business

For many people, the act of creating a business and finding a clientele can be daunting. To avoid this, buying an accounting practice can be a great way to take advantage of an infrastructure that’s already been created. However, this option can sometimes be an expensive undertaking. 

Build from the ground up

While some prefer a slower transition, others thrive when throwing themselves fully into a situation. For those who identify with the latter, starting an accounting firm from the ground up can be a great option. 

While all of these options are viable, only you can decide which one works the best for your life. This being the case, it’s important to research all of your options and figure out which resonates with you the most before taking the leap and starting your business.

READ: From Employee to Entrepreneur — Top Tips for Making a Successful Switch  

Choose your specialization and write a business plan

It’s important to choose a specialization when starting an accounting firm. While you can always expand the services that you offer over time, it’ll be difficult to offer them all while you’re starting out. Some specializations you may choose include:

  • Auditing
  • Tax accounting
  • Fiduciary accounting 
  • Financial accounting

The specialization that you choose for your business will likely reflect your previous work as an accountant and your individual specialty. 

After choosing your specialization, it’s time to start crafting a business plan. This process will involve choosing what type of business structure to utilize, such as an LLC or a Corporation, what your goals are for your organization and an estimate of how much starting up your business will cost. 

In addition, this is where you’ll begin to make decisions about where you’ll operate your business and who you will hire for which positions. 

Market your business and attract clients

Once you’ve completed the groundwork and are ready to start succeeding with your business, it’s time to start marketing and attracting clients. This can include reaching out to your social network, taking ads out in local newspapers or cold calling various individuals or businesses. 

READ: How Brands Can Grow Customer Loyalty and Build a Positive Reputation in 2023

Ultimately, your strategy to gain new customers will depend on your unique business. As such, it’s important to try different practices and strategies and adjust your marketing practices depending on what works and what doesn’t. 

You’re capable of starting an accounting firm in Colorado

While it can be scary to commit to an entrepreneurial venture, the rewards that come from opening your own business are unparalleled. By making sure you’re thorough in every step of this guide, you’ll dramatically simplify the process of becoming an accounting firm owner and operator.

So if you get stuck thinking about failure, remember that you’re capable of pulling it off and bringing your vision to life if you’re willing to put in the time and effort.

 

Andrew Deen HeadshotAndrew Deen has been a consultant for startups in a number of industries from retail to medical devices and everything in between. He implements lean methodology and is currently writing a book about scaling up business.