Looking to Buy an Accounting Practice?
Accounting services businesses can include not only CPA practices, but also bookkeeping, payroll services, tax preparation, auditing and general accounting. Approximately 25% of industry revenue is derived from payroll services, 20% from tax preparation, auditing accounts for 15%, bookkeeping at about 10% and the remaining services account for under 10% each.
Cash flow can be seasonal in regards to tax returns and annual report preparation. Also keep in mind that accountants and accounting firms must be licensed to do business in their state. Accounting firms must comply with numerous government regulations and standards but are mainly self regulated through professional organizations. Tax preparers must register with the IRS.
The Sarbanes-Oxley Act of 2002 introduced major changes in regulations to the accounting and finance industry, it is a mandatory requirement. The law establishes new, stricter accounting standards for all US publicly traded companies. It does not apply to private companies. The Act created new standards for corporate accountability as well as new penalties for acts of wrongdoing.
The process of buying or selling an accounting services business requires the advice and guidance of a professional with not just experience, but also expertise in the industry. The Business Brokers at Murphy Business & Financial Corporation can assist you with industry research and regulations in conjunction with buying an accounting firm in your specific region. They will assist you with locating the right business to meet your specific needs.
Many of our professional business brokers have extensive accounting backgrounds with varied expertise in the industry. They have worked in the accounting industry or owned an accounting firm and have also completed many business transactions involving accounting businesses. We currently have various accounting businesses for sale throughout the United States and Canada.
Key Factors – Accounting Services
- Demand is dependent on new business formation, increases in personal income and the growing
- complexity in corporate business accounting
- U.S. revenue for accounting services rose 12.8% in 2011
- Certified Public Accountant (CPA) and Certified Management Accountant (CMP)
- designations are highly desirable
- Increased competition from “Do It Yourself” accounting software
- The profitability of an accounting business depends on the right combination of service offerings, superior customer service and effectively marketing those services. The professional knowledge and information you possess is also your best marketing tool.