Starting and running a CPA firm of your own is a huge endeavor. Not only are there legal issues to be aware of, but there are special financial issues to be considered as well. After startup costs are covered, accounting firms have some unique cash flow and revenue issues that must be considered. It is all worth it, however, to have the freedom to run your own business doing something you love and using a degree for which you worked very hard.
The More Things Change…
There are some unique aspects to funding an accounting business. Business loans for CPAs are often used for startup, but the cash flow of such a business can get tricky. Once dubbed “busy season,” many accountants these days call tax season “great season.” They are busy, working 80 hours a week or more, but a huge percentage of their revenue for the year is earned during these 4 months, sometimes even up to 80%. Careful budgeting, finding clients with varying needs throughout the year and add-on services, such as bookkeeping for clients, can help produce revenue, but things happen and sometimes cash flow is short.
The More they Stay the Same
Unexpected expenses, and many of the startup expenses, are very similar to other businesses. Broken equipment, licensing, and payroll are all common expenses that can become issues when cash flow falters for whatever reason. Also, many professional practices attend trainings in the summer when things are not as busy to cover CPE requirements. These can become costly as well.
Get the Funds and Save the Worry
There are plenty of options for funding cash flow gaps, startup, and even expansion. Business loans for CPAs are available from many lenders, including lines of credit and startup loans. Practice loans for accounting professionals have, for the most part, the same application requirements as other types of business loans. The key is to be prepared and to have a professional business plan.
Biz2Credit can help CPAs find the right lender with the perfect financing tools for each specific business and need. Our network of over 1,200 lenders is available to our clients, and we help each client determine which products and lenders fit best. Visit Biz2Credit.com today for more information.