How to start an accountancy firm

If you’re an accountant or bookkeeper with a head for numbers and a heart for helping businesses, launching your own practice can be a smart and rewarding move.

The UK had around 5.5 million businesses in 2024, with small businesses representing over 99% of these.

Every one of those smaller businesses needs to meet tax and compliance obligations, and many want guidance on cash flow, pricing, funding, payroll, VAT, and growth.

The shift to digital record-keeping, cloud software, and Making Tax Digital (MTD) has increased the value of trusted accountants who can combine compliance with practical, tech-enabled advice.

According to the Institute of Chartered Accountants in England and Wales (ICAEW), due to an ongoing skills shortages in audit and accountancy, demand for qualified professional in this area is strong.

If you can deliver a reliable, modern service – especially in a niche you know well – starting an accountancy firm can be viable, flexible, and scalable.

Learning how starting an accounting firm could be a rewarding first step to helping business owners and growing your own business.

What is an accountancy firm?

An accountancy business provides accounting services to other businesses, individuals, or organisations.

Typical services include:

• bookkeeping and management accounts
• year-end accounts and Companies House filings
• Self Assessment and Corporation Tax returns
• VAT registration, advice, and returns
• payroll, pensions auto-enrolment, and CIS
• cash flow forecasting and budgeting
• company secretarial services.

The typical goal of an accountancy firm is to provide its clients with a realistic picture of their financial situation and help them make smarter decisions with their money.

Some firms specialise, for example, by focusing on working speficially with trades, creatives, consultants, professional services, hospitality, or not-for-profits.

Others offer broad smaller business support.

You can also decide where to sit on the spectrum from compliance-only to advisory-led.

Necessary training and qualifications

While there’s no single legal pathway to becoming an accountant, clients expect strong technical competence, ethics, and supervision.

To run an accountancy business, having certain training and qualifications is important.

A degree in accounting, finance, business, or a related subject could be a great starting point for the best chances of future success.

After completing a formal education, there are a number of professional qualifications you could pursue from recognised bodies.

The main UK bodies offering qualifications are:

• the Institute of Chartered Accountants in England and Wales (ICAEW)
• the Association of Chartered Certified Accountants (ACCA)
• the Chartered Institute of Management Accountants (CIMA)
• the Institute of Chartered Accountants of Scotland (ICAS).

Each body has its own requirements and qualifications, which involve a combination of passing exams and completing a period of approved work experience (often called a training contract).

To specialise in a certain area of accounting, such as tax or forensic accounting, you may need additional certification.

Once qualified, you can keep your skills up to date by participating in continuing professional development (CPD), which is a requirement of all the main professional bodies.

If you plan to offer services as a 'chartered accountant' to the public, you must also hold a practising certificate issued by your professional body.

Anyone providing accountancy or bookkeeping services as a business must be supervised for anti-money laundering (AML) under the UK Money Laundering Regulations, either by their professional body supervisor or by HMRC.

What soft skills do I need?

In addition to professional qualifications, successful accountants could also benefit from a range of soft skills.

Strong communication and good problem-solving could be important, as you may need to explain complex concepts to clients and clearly communicate practical solutions to their financial challenges.

Effective time management and organisational skills could also be considered important, as accountants frequently manage multiple clients, deadlines, and detailed work.

Should I buy an existing business or start my own?

If you plan to open your own accountancy firm, there are two paths you could take.

You could start a business from scratch, or buy an existing one.

Each option has its own set of advantages and challenges, and the right choice could depend on your goals, resources, and experience.

Starting from scratch

Starting your own accounting firm from scratch means you can set own goals and values.

You could potentially have lower initial costs and enjoy complete control over business direction and culture.

However, it may take longer to build a reputation and client base. 

You could potentially face struggles securing initial funding, deal with uncertain cash flow, and may need to develop all systems and processes yourself.

Buying an existing business

If you decide to buy an existing accounting business, you could enjoy a pre-made customer base and immediate cash flow and revenue. 

You may also have access to experienced staff and systems, and potentially find it easier to access finance due to a proven track record.

However, you may have to handle higher upfront costs and risk losing clients in the transition. 

You may also have to potentially take over hidden debts and change the existing business culture or processes.

How much does it cost to start an accountancy firm?

The cost of starting an accountancy firm could vary depending on the size and scale of the business you plan to launch.

Typical start-up costs you might want to plan for, include:

• office space – you could work from home at first to save money, or rent a small office if you want to meet clients in person
• equipment – this typically includes a computer/laptop, a business phone, scanners and printers, and secure filing storage for client records
• software – including professional accounting software, as well as office software with secure cloud storage
• insurance – professional indemnity insurance could be essential, and you may also need public liability and cyber insurance
• website – a professional website may be key for attracting customers, with costs potentially including hosting and domain registration
• memberships – paying fees to recognised bodies, such as ICAEW or CIMA, is required if you want to be a qualified accountant
• marketing – you may need to budget for digital advertising and possibly attending local networking events to attract clients.

If you plan to run your start-up accounting firm from home, your initial costs could range from £3,000 to £10,000.

Renting office space, hiring staff, or investing in more sophisticated systems could increase your costs.

Bear in mind that you may need to regularly review and update your technology and processes to stay compliant and competitive.

You might also consider ongoing professional development to keep your skills and knowledge current.

Where can I find funding?

You could fund your accounting firm in several ways, including personal savings, a loan from friends and family, or a bank loan.

You might also consider government-backed schemes such as Start Up Loans, which provide loans of up to £25,000.

Learn how to get a loan for your start-up business.

Deciding on your services with market research

It can be worth doing some simple market research before you launch your accountancy firm so you know which services to offer.

This can involve looking at what competitor firms do, identifying any gaps in their services that you could fill, and speaking to potential clients about what they want. 

Short online surveys can also help you gather quick feedback.

If you find a clear gap, think about specialising – for example in start-ups, contractors, or a specific industry.

Consider how AI tools can help with tasks like data analysis and automated bookkeeping. 

They could help make your service faster, more accurate, and more competitive.

Good market research could help you focus on services that are most in demand.

This could help you attract clients and build a profitable business.

Selecting a pricing model

When setting up your accountancy firm, you’ll need to decide how you’ll charge clients.

Popular options include hourly rates, where clients pay for the time spent, and fixed fees for specific services.

Some businesses use a combination of both.

Carefully considering client needs and the services you want to provide could help you price your services correctly.

Creating a business plan

A business plan is a living document that explains what you do and how you’ll grow.

It contains core information about your business, including your services, target market, pricing, marketing strategy, and financial forecasts.

Without a clear business plan, it may be difficult to secure funding and track your progress.

You could also find it difficult to stay focused on your business goals.

Download our free business plan template.

Choosing a business structure and registering with HMRC

When starting your accountancy firm, you’ll need to decide on a business structure.

Common options include sole trader, partnership, or limited company.

Each has different legal and tax responsibilities, so choose the one that fits how you want to operate.

Once decided, you must register your business with HMRC to be compliant with tax legislation.

In addition, limited companies, Limited partnerships, and Limited liability partnerships must register with Companies House.

Read our guide to different start-up business structures.

Marketing and winning clients

To grow your accounting firm, you may need to actively market your services to attract your target clients.

You could do this in a number of ways:

• network with other businesses in your sector
• use social media marketing tactics
• join online directories
• use affiliate marketing
• ask satisfied clients to share reviews online.

Learn how to create a marketing plan to win new clients.

Growing your business and hiring staff

As you win more clients, you may need to hire staff to handle the workload and expand your services.

This could mean recruiting other qualified accountants or support staff, and providing training for them.

You may also need to create efficient systems for teamwork and provide a healthy work environment.

As your business grows, you might need a bigger office and better technology and equipment.

Starting an accountancy firm requires more than just a head for numbers – it takes drive, the right skills and ongoing effort.

With a solid business plan and the right support, you could build a successful business that steadily grows over time.