Establishing an Accounting Firm
An accounting firm helps clients with services like bookkeeping and payroll. To open a firm, get a business license. When establishing a firm, first evaluate your expertise. Successful firms understand accounting. Obtain required licenses like a CPA license and register with your state board. Federal regulations include intellectual property and industry licenses.
As strategies and goals change, redesign roles to suit the new direction. Hiring approaches evolve too. Structure helps achieve vision. It controls information flow. The typical structure has a CFO at top, then VP, accountants and analysts. Large firms regionalize to leverage local expertise.
Accounting Firm Hierarchy
The structure of an accounting firm looks generally like a triangle: the partner is at the top, with several managers reporting to the partner. Several senior associates report to each manager and staff accountants report to the senior associates. The accounting field is a highly organized industry, often referred to as the accounting firm hierarchy. Some Big Four firms have at least two levels for entry-level employees, a senior level, at least two levels of manager, a director or managing director level, and partner (which has its degrees of advancement).
Choosing the Right Legal Structure
What are some of the key legal considerations when you join, operate or expand an accounting firm? Protecting your intellectual property is generally inexpensive and guards your brand in the market. Although small businesses can be LLCs, some large businesses choose this legal structure. All new companies can choose between four basic legal structures, and it is vital to select the correct one for your firm, so you should make your final decision with a legal or tax advisor. The most common types of business structures in the United States are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
Interest is growing at both national and European Union (EU) level in the legal structures used in this ‘third sector’ or ‘civil society’. But, it can be overwhelming to determine which structure is the best fit for your business. That’s why we’ve created this comprehensive guide to help you navigate the process of selecting the right structure for your business.