Sole Proprietorship as a CPA

As a certified public accountant, it can be exciting to work on your own as a sole proprietor. Not having to deal with employees and other accountants can be freeing.

There are many benefits of being your own boss. You get to decide the direction of your practice and grow at the pace you want. You don’t have someone micromanaging you and telling you what to do.

At the same time, though, there’s a lot of pressure involved. As a sole proprietor, you alone carry all the responsibility for keeping the firm afloat. You also are the one who has to do everything. This can be exhausting. You’ll have to multitask and work long hours to accomplish everything, especially during tax time.

As a CPA, you may operate as a sole proprietor and sole practitioner. A sole practitioner is a CPA who runs their firms with no other accountants on staff. A sole proprietor, on the other hand, refers to CPAs who are the sole owners of their firm but have other accountants on staff who help with the work.

Every CPA has their own experiences. One CPA started her business less than a year before COVID hit, and once that happened, her business came to a halt. She had to essentially start over and pivot, reconsidering where she could add value. She learned new practice areas, which was stressful. It’s better to keep things simple and stick to what you know.

Another CPA started his firm in 2020 and admitted that it wasn’t easy at first. Becoming an entrepreneur meant a lot of work and sacrifice. However, it can work out great for those who have young families. You can earn more money while also being present for your spouse and children. There are no ceilings, which can apply to growth and income. You can go in any direction and grow your firm however you want.

It can be hard to start your own business. You really have to know how to market your business. Many CPAs are able to succeed based on word of mouth and recommendations from satisfied customers. They are able to build the lifestyle they want by deciding how much work to take on.

Whatever you decide to do, you need to figure out what you want to focus on. Some CPAs focus on financial planning, while others focus more on taxes and bookkeeping. A lot of CPAs who are sole proprietors struggle with resources and experience.

Learn More About Sole Proprietorships

Being your own boss and running things on your own can be exciting but stressful. All businesses have inherent responsibilities that must be attended to, and a legal professional can help.

Orlando sole proprietorship lawyer B.F. Godfrey from Godfrey Legal has the experience needed by business owners in making the correct decision that will lead their business to success. Schedule a consultation by calling (407) 890-0023 or filling out the online form.

Source:

journalofaccountancy.com/issues/2024/aug/single-owner-firms-the-thrill-of-flying-solo.html