If you’re a Certified Public Accountant (CPA) or Enrolled Agent (EA) tax professional who dreams of entrepreneurship, you know that taking the first step can be scary. But a solid business plan can help you understand where you are, where you’re going with your business, and what you need to achieve to it.
Learn to write your CPA firm business plan and step into entrepreneurship with confidence and a strong base to build your success.
What is a CPA firm business plan?
A CPA firm business plan is the blueprint for building a business that provides clients with public accounting services. It details both your overall business objectives and the strategies that will lead you to achieve them.
A comprehensive business plan for a CPA firm or tax firm includes details like:
- Budget
- Services you’ll provide
- Market analysis
- Sales strategy
- Management and team members
- Sources of funding1
Why write a business plan for your CPA firm?
Creating a CPA firm business plan is an essential first step in opening your firm. You'll need to provide this to the bank to secure a loan, but even if you don't require funding, it will help you define your business, set your goals, and understand your place in the market.
Clarity
The process of writing your business plan will force you to understand your business inside and out, examining all aspects of its purpose, scope of services, strengths, and potential pitfalls. You’ll have the space to articulate your vision and determine whether or not it seems viable in your target market.
Roadmap
After you’ve written your business plan, it will serve as a compass while you’re building your business. You’ll reference it daily for everything from budget details to a big-picture reminder of your mission and vision.
Funding
You’ll need a business plan when pitching your organization to potential financial backers. Banks will ask for your CPA firm business plan before issuing a loan. Likewise, all investors—individual or firm—will require that you present your business plan to convince them why they should invest.
How to write a CPA firm business plan
Writing a business plan for your CPA firm can seem daunting, but you can streamline the process by understanding a basic business plan outline and tackling one section at a time.2 3
Executive summary
This intro gives a big-picture overview of who you are as a business, what services you’ll provide clients, and how you’ll do it.
You can include here a few key objectives that you plan to accomplish, you firm’s mission and vision, and what you need to succeed.
Company description
Here is where your CPA firm business plan goes in-depth about your company. Define things like:
- Who you are
- What you do
- Who you serve
- Description of services you offer
- Short- and long-term goals
- Company leadership and team composition
- Company history
- Finances to date (if you’re already in business)
TIP!Include a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to clearly position where your company stands, what you have to offer, and the best way to enter the market. |
Market analysis
Current market research is imperative to include in your plan. This section should give a detailed review of:
- Principal market for your firm
- Size and scope of market
- Market comparables
- Audience pain points and accounting needs, services desired
- Your competition
- Your unique selling points / What sets you apart
- Industry trends
- Licenses or permits needed / Legal regulations
Accounting services
While you mentioned the services you offer in the summary section of your CPA firm business plan, you’ll go into more detail here.
Not only should you list the services that your firm provides (from tax services to auditing to bookkeeping), but also why your service is better than that of competitors. Include a differentiation strategy that sets your services apart and provide clients with added value.
Marketing and sales strategy
You may have the best services in the world, but it doesn’t mean much if you don’t have a way to sell them. Make sure you include a detailed strategy that connects your services with your audience and makes an impact in the market.
You identified and segmented your audience during market analysis, but you can revisit that information here to help you define how you’ll reach each group. For example, outline web and social strategy, SEO guidelines, content and email marketing, sales teams, etc., and how you’ll use each channel to boost revenue.
You can also include if your team currently has experts in these areas or if you plan on expanding to hire personnel that will take charge of these strategies.
Operational plan
Detail how you will execute your services and business growth strategies. Describe your team members and staff—either current or projected. Describe the organizational structure and procedures that will allow you to serve clients and grow the business.
Take this opportunity to show readers how clients will interact with your firm. Describe the end-to-end process of reaching a client, making contact, the sale, performing the service, and maintaining the relationship. Be sure to include a rough timeline and any tools or technology that you’ll use in the process.
You can also describe the need for additional staffing, tools, or development aspects that you don’t currently have in place, and how they will improve your current operational processes.
Management team
This is where you shine! Introduce yourself and any other key managers on your team, including brief professional bios and credentials.
Your CPA firm business plan should also include any investors you currently have on board, as well as an organizational chart of your team members. Maybe it’s just you or a few individuals at this point and that’s okay! Use this chance to explain your background, expertise as a CPA or tax professional, and the skillsets that equip you as a strong entrepreneur.
Financial plan
Here’s where your number skills will come in handy. Give an accurate report of your finances to date (if you’re already in business), as well as data-backed forecasts for the next three-to-five years. This should include details such as:
- Firm total cost
- Capital investment requirements
- Break-even analysis
- Key assumptions
- Projected profits and losses
- Projected cash flow
- Projected balance sheets
- Master budget
Funding requests
This section of your CPA firm business plan is where you detail the financial support you need. You need to explain how much and exactly how you’ll use the funds. Include as much detail as possible! Investors will be more likely to jump onboard if they’re confident in how their money will be spent.
Achieve business success with Becker
Your entrepreneurship goals are achievable—and Becker has the resources to help you get there! Use your continuing professional education (CPE) requirements to take advantage of our business and management CPE courses, such as:
Get unlimited learning access to all these and more through Becker Prime CPE subscription—and start achieving your CPA or tax professional firm goals!
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