Starting an accounting firm in 2025 is nothing like it was a decade ago. Back then, all you needed was a CPA license, a downtown office, and some business cards. That playbook is dead.
Today, client trust depends as much on your IT stack as your credentials. Security failures can sink you before you land five clients. Competition isn’t just local anymore, remote-first firms are serving clients nationwide from day one. And while automation is cutting out the busywork, only firms that embrace it are capturing the margins.
Most “how to start an accounting firm” guides focus on paperwork: LLC registration, hourly rates, maybe a marketing tip. That’s table stakes. What actually decides whether your firm survives, scales, and commands premium pricing in 2025 are three things:
- How niche and clear your positioning is.
- How fast you can prove credibility without a 10-year track record.
- How airtight your security and compliance foundation is.
This guide cuts through the generic chase and help you learn:
- Why 2025 is the best window in a decade to launch.
- Whether you really need a CPA license (and the trade-offs if you don’t).
- A 7-step roadmap that gets you client-ready in 90 days.
- The real startup costs most guides gloss over.
- The exact tech and security stack that wins client trust.
By the end, you’ll know not just how to open an accounting firm, but how to open one that can survive the trust crisis, scale remote-first, and grow lean while looking bigger than legacy firms.
Table of Contents Show
Why 2025 Is the Best Year to Start an Accounting Firm
If you’re debating whether to launch now or wait, stop waiting. 2025 is the best window in over a decade to start an accounting firm. The demand is high, barriers are lower, and legacy firms are too slow to adapt. That creates an opening for lean, tech-first players who get it right from day one.
1. The client pool has never been bigger
The U.S. is averaging 430,000+ new business applications every month (U.S. Treasury 2024), nearly 50% higher than pre-pandemic levels. Every new LLC or S-Corp eventually needs bookkeeping, payroll, and tax help. The market is growing faster than supply, giving new firms a ready-made audience.
2. Remote-first is the new default
Five years ago, firms still relied on local offices. In 2025, geography no longer limits growth. Remote-first firms are serving clients nationwide, building distributed teams, and scaling without office overhead. Now, what matters isn’t your zip code, it’s whether you have secure systems and a credible brand.
3. Automation is driving profitability
Automation isn’t replacing accountants, it’s replacing busywork. Cloud bookkeeping, AI reconciliation, and workflow tools cut processing time considerably. That frees you to sell advisory services, where margins average typically yield higher net margins than general compliance services.
4. Security is now a competitive edge
Legacy firms are sitting ducks. Over half of mid-sized firms with 20+ staff still use shared servers with no SOC 2 controls (VeritSpace Onboarding Data, 2025). Clients don’t ask about compliance acronyms, they ask if their data is safe. If you launch with encrypted portals, MFA, and managed backups, security becomes your sales weapon, not just a checkbox.
5. Startup costs are lower than ever
A decade ago, launching meant servers, IT hires, and office leases. Today, you can build an enterprise-grade IT stack for under $500/month using managed hosting and outsourced IT. That frees up budget for certifications, marketing, and talent, the things that actually brings in the business.
2025 is the year new firms can leapfrog giants. While big players wrestle with outdated systems, you can launch lean, secure, and nationwide, and capture market share they’re too slow to defend.
Do You Need to Be a CPA to Start an Accounting Firm in 2025?
Short answer: No. You can open an accounting firm in the U.S. without being a CPA. But it directly impacts what services you can offer, how you brand yourself, and even your insurance costs.
What Non-CPAs Can and Cannot Do
- Allowed without CPA license: bookkeeping, payroll, tax prep, and advisory.
- Restricted to CPAs only: audits, reviews, and attest services.
- Naming rules: You cannot use “CPA” in your firm name unless state law allows (most states require majority ownership by licensed CPAs).
Cost Advantage of Non-CPA Firms
Skipping attest services doesn’t just simplify compliance, it lowers insurance. Non-CPA firms often pay lower liability insurance premiums since they don’t handle attest work. That money is better spent on IT security, marketing, and certifications.
CPA vs. Non-CPA at a Glance (2025 Snapshot)
| Factor | CPA Founder | Non-CPA Founder |
|---|---|---|
| Services | Full menu: audits, reviews, attest, advisory | Limited: bookkeeping, payroll, tax, advisory |
| Firm Naming | Can use “CPA” (if majority CPA-owned) | Cannot use “CPA” in name |
| Insurance Costs | Higher (covers attest work) | Lower |
| Startup Licensing | CPA license + state board registration | Entity formation only (LLC, S-Corp, etc.) |
| Growth Path | Broader services, heavier compliance | Lean ops, can partner with CPAs |
How to Start an Accounting Firm Without Experience
You don’t need a Big Four resume to launch a credible firm in 2025. What matters is how you position yourself, how quickly you build trust, and how you cover gaps in licensing or expertise. Many first-time founders have scaled profitable practices in under two years by focusing on three things: niche, credibility signals, and partnerships.
1. Choose a hyper-specific niche
Generalists drown in competition. Specialists stand out. Instead of being “an accountant for everyone,” pick one pain point you can own, like bookkeeping for Shopify stores, payroll for dental practices, or tax prep for rideshare drivers.
2. Earn fast, visible credentials
If you don’t have years of client work to point to, you need proof clients recognize. Two credentials make the biggest impact:
- Enrolled Agent (EA): IRS credential, ~12 weeks, lets you represent taxpayers nationwide.
- Intuit Certified Bookkeeping Professional: ~60 hours, signals competence to small business owners.
Both are affordable, quick, and give you trust signals before you’ve built a portfolio.
3. Partner or outsource what you can’t do
Don’t try to fake expertise. If a client asks for an audit or complex tax strategy, partner with a CPA. For IT and compliance, outsource to managed providers like VeritGuard. Covering blind spots reduces malpractice risk and keeps your reputation clean.
4. Show proof, not theory
Clients don’t care about your titles, they care about results.
Save a client $1,200 in taxes? Publish that as a case snippet on LinkedIn.
Post one micro-case study a week. These can boost visibility and inbound leads. Early credibility comes from visible wins, not long resumes.
Quick-Launch Formula (No Experience Needed)
- Pick 1 niche you can master.
- Earn 1 credential clients recognize.
- Post 1 case story per week.
- Partner for audits & IT security instead of faking expertise.
7-Step Roadmap to Starting an Accounting Firm in 2025
Launching an accounting firm isn’t just about filing paperwork and picking software. It’s about building a business model that can scale, earn client trust, and survive regulatory scrutiny from day one. Most new firms waste months tinkering with logos or office space, only to discover they’ve ignored the real foundations: niche clarity, pricing, IT security, and client acquisition.
This roadmap is built for 2025’s realities: remote-first clients, automation-driven workflows, and compliance as a sales weapon. Follow it, and you can be lean, credible, and revenue-ready in 90 days. Skip it, and you’ll lose six months while still being vulnerable to the same rookie mistakes.
Step 1: Define your niche and services
Generalist firms blend into the noise. Specialists charge more and win faster. Pick one vertical where demand is obvious (ecommerce sales tax, medical payroll, franchise bookkeeping). Package services into clear tiers, starter, growth, advisory, so prospects can see value instantly.
Step 2: Choose the right business structure
Your entity affects taxes, liability, and trust.
- LLC → Flexible, best for solo or two-partner startups.
- S Corp → Ideal once owner salaries hit $80k+; saves on payroll taxes.
- PC (Professional Corporation) → Required in some states if you want to use “CPA” in the firm name.
Many founders start as an LLC, then elect S Corp status when revenue stabilizes.
Step 3: Build a business plan and pricing model
Skip the 40-page binder. Instead, build a one-page plan covering market, offer, goals, and budget is enough.
- Aim for ~$8k MRR in year one (e.g., 4 clients at $2k each or 10 clients at $800).
- Use value-based pricing, sell outcomes, not hours. Firms using value pricing usually average higher margins.
- Track core KPIs: client acquisition cost, revenue per client, churn.
Step 4: Invest in software & IT infrastructure
Client trust hinges on your IT.
- Host core apps (QuickBooks, Drake, Lacerte) on a dedicated private server, faster and more secure than shared RDP.
- Use practice management software (Karbon, Canopy) to cut admin time.
- Enforce MFA, encrypted portals, and SOC 2–audited hosting.
- Outsource backups and security to managed services like VeritGuard.
Step 5: Build your brand and website
Your brand equals credibility.
- Pick a compliant name (avoid “CPA” unless legally allowed).
- Launch a simple, fast-loading website: 75% of users judge credibility by web design and load speed (Stanford Research 2024).
- Publish one niche-focused blog per week to build authority and SEO momentum.
Step 6: Find your first clients
Early clients come from relationships, not ads.
- Referrals → Reach out to 100 ex-colleagues or business owners with a free “profit leak scan.”
- Communities → Be active in LinkedIn or Slack groups in your target vertical.
- Reviews → Just 5 fresh Google reviews can push you into the Maps Top 3, which helps dominate clicks.
- Partnerships → Co-host webinars with SaaS tools serving your niche.
Step 7: Plan for compliance and data security
Compliance isn’t paperwork, it’s risk management.
- Map your IT to FTC Safeguards Rule (MFA, encryption, risk assessments).
- Follow IRS Publication 4557: encrypted backups, off-site storage, incident response.
- Apply the 3-2-1 backup rule: 3 copies, 2 media, 1 off-site.
- Use SOC 2 Type II hosting to prove credibility with larger clients.
Don’t Miss: Cybersecurity Audit Checklist for Accounting Firms (2025 Guide to IRS & FTC Compliance)
90-Day Launch Snapshot
- Weeks 1–2 → Pick niche, form LLC, secure name.
- Weeks 3–5 → Set up IT stack, launch website, earn one credential.
- Weeks 6–8 → Outreach + content, onboard first clients, secure client portal.
- Weeks 9–12 → Land 3–5 clients, enforce compliance, write SOPs.
How Much Does It Cost to Start an Accounting Firm in 2025?
How to use the calculator above?
- Click + Add item.
- Type the Item name.
- Pick Type = One-time / Monthly / Annual.
- Enter Low, High, and Qty/Months (leave blank for defaults: Monthly → 12, Annual/One-time → 1).
- Watch Year-1 Low/High and Totals update instantly.
- Use Reset to load sensible starter rows and edit.
Example entries (fill these exact values)
- Entity formation & licenses — Type: One-time — Low: 500 — High: 800 — Qty: 1
- Professional liability insurance — Type: Annual — Low: 1200 — High: 1800 — Qty: 1
- Secure hosting / apps — Type: Monthly — Low: 220 — High: 350 — Qty: 12
- Core software stack — Type: Annual — Low: 1500 — High: 2400 — Qty: 1
What you should see
- Year-1 totals per row
- Entity formation: $500 – $800
- Insurance: $1,200 – $1,800
- Hosting/apps: $2,640 – $4,200 (220×12, 350×12)
- Core stack: $1,500 – $2,400
- Summary (auto-calculated)
- Total Year-1 (Low): $5,840
- Total Year-1 (High): $9,200
- Monthly Burn (Recurring, Low): $220
- Monthly Burn (Recurring, High): $350
Tips
- Leaving Qty/Months blank uses smart defaults (12 for Monthly, 1 for Annual/One-time).
- To model a 2-year contract, set Type = Annual and Qty = 2.
- If a vendor only gives one price, put it in Low and leave High at 0 (the calculator will still work).
- Keep one row per subscription to see a clean Monthly Burn.
Most founders underestimate their startup costs by half. They budget for licenses and software, but forget the expenses that actually protect revenue, security, compliance, and insurance. The truth: in the U.S., expect to spend between $12,000 and $30,000 in your first year, depending on whether you go lean (remote-first, no office) or invest in a branded office setup.
Accounting Firm Startup Costs (U.S. Estimate, 2025)
| Cost Item | Typical Range (USD) | Notes |
|---|---|---|
| Entity formation & licenses | $300 – $1,000 | State filing fees, EIN (SBA 2025) |
| Professional liability insurance | $800 – $2,500 | Lower if no attest services |
| Secure private server hosting | $220/month ($2,640/year) | VeritSpace dedicated hosting |
| Software stack (accounting + PM) | $1,200 – $2,400 | QuickBooks, Drake, Karbon |
| Website & branding | $1,000 – $3,000 | Domain, logo, WordPress build |
| Marketing & networking | $1,500 – $4,000 | Early ads, events, webinars |
| Office setup (optional) | $3,000 – $8,000 | Furniture, laptops, hardware |
| Contingency & training | $1,000 – $2,000 | Compliance training, emergency fund |
Total Estimate: $12,000 (remote-first lean setup) – $30,000 (office + branded setup).
Where to Spend vs. Where to Save
- Spend on: security, insurance, IT. These protect client trust and revenue.
- Save on: furniture, fancy offices, vanity branding. Clients don’t care about mahogany desks, they care if their tax returns are safe.
If you can afford around $1,000/month, you can afford to run a lean, compliant, high-trust firm in 2025.
Tools & Tech You’ll Need to Start an Accounting Firm in 2025
In 2025, your technology stack is more than software, it’s the backbone of your credibility. Clients don’t just hire you for bookkeeping or tax prep; they buy into the security, speed, and professionalism of your systems. Miss a layer, and you risk bottlenecks, downtime, or worse, a data breach.
The five layers every modern accounting firm needs:
1. Core Accounting Engine
Tools: QuickBooks Desktop, Drake, Lacerte, hosted on a dedicated private server. If you use Lacerte, consider Lacerte hosting for secure remote access and better multi-user performance.
Prefer Intuit ProSeries? Set up ProSeries hosting on a dedicated private server for smooth peak-season workloads.
Why it matters: Cloud-hosted apps avoid local hardware bottlenecks and generally offer faster, more reliable multi-user performance. Faster workflows = more billable hours and fewer client frustrations.
2. Practice Management
Tools: Karbon (for advisory-heavy firms) or Canopy (for tax and bookkeeping).
Why it matters: Firms with <10 staff save hours per week by automating task tracking and deadlines.
3. Secure Client Portal & E-Signature
Tools: SmartVault or Suralink (SOC 2–audited).
Why it matters: Meets FTC Safeguards Rule encryption requirements and gives clients the seamless file-sharing experience they now expect.
4. Communication & Email Security
Tools: Microsoft 365 Business Premium with MFA enforced. Set up Office 365 hosting to centralize email and collaboration with MFA and conditional access.
Why it matters: MFA blocks 99% of account takeover attacks (Microsoft Security Blog 2023). A hacked inbox is a lawsuit waiting to happen.
5. Backup & Recovery
Tools: VeritGuard automated 3-2-1 backups with off-site replication. Implement managed backup and instant recovery so restores are predictable during deadlines.
Why it matters: 44% of ransomware attacks target professional services firms (Verizon DBIR 2024). Without tested backups, downtime can stretch into days.
Ready To Implement Tech Stack Table
| Layer | Must-Have Tools | Why It Matters |
|---|---|---|
| Core Accounting | QuickBooks, Drake, Lacerte (hosted) | Secure, faster multi-user workflows |
| Practice Management | Karbon, Canopy | Saves 10+ admin hours/week |
| Secure Portal & E-Signature | SmartVault, Suralink | FTC-compliant client file sharing |
| Communication & Email | Microsoft 365 + MFA | Blocks 99% of account takeovers |
| Backup & Recovery | VeritGuard automated backups | Protection against ransomware & downtime |
Expected monthly spend: $150–$400 depending on team size. That investment buys you speed, security, and client trust, the foundations of a scalable firm.
Common Mistakes to Avoid When Starting an Accounting Firm
Most firms don’t fail because of bad accounting. They fail because of avoidable business decisions. These five mistakes can kill margins, damage trust, or stall growth, avoid them early.
Mistake 1: Underpricing early clients
Consequence: Once you anchor clients at bargain rates, raising prices later triggers churn, firms that adjust pricing more than once a year see much higher churn.
Fix: Price on outcomes, not hours. It’s easier to defend premium fees than backtrack from discounts.
Mistake 2: Ignoring cyber hygiene
Consequence: 61% of small-firm breaches start with reused or weak passwords (LastPass SMB Report 2023). A single hacked login can trigger lawsuits, penalties, and client exits.
Fix: Enforce MFA and unique passwords across the firm. Basic hygiene blocks most attacks.
Mistake 3: Staying generalist too long
Consequence: Generalist firms average lower margins than specialists at the same revenue level. Trying to serve everyone means no one remembers you.
Fix: Own one niche, build authority, and expand later. Specialists win referrals and pricing power.
Mistake 4: Treating backups as a checkbox
Consequence: 33% of backups fail when tested (Acronis 2024). If you can’t restore on deadline, your “backup” is worthless.
Fix: Run quarterly restore drills. The only backup that matters is one you’ve tested.
Mistake 5: Waiting to market until you feel “ready”
Consequence: Firms that start publishing content pre-launch reach breakeven 3 months faster. Silence kills momentum.
Fix: Share insights, case snippets, or mini-guides during setup. Visibility compounds before you open your doors.
Frequently Asked Questions About Starting an Accounting Firm
Yes. You can legally start an accounting firm without being a CPA. Non-CPAs can offer bookkeeping, payroll, tax prep, and advisory services, but only licensed CPAs can sign audits or review reports. Most states also restrict the use of “CPA” in firm names unless majority-owned by licensed CPAs.
Expect $12,000-$30,000 in year-one costs. The lower end covers a lean, remote-first setup; the higher end includes office space and branding.
Key non-negotiables:
– Secure IT hosting (~$220/month)
– Professional liability insurance ($800–$2,500/year)
– Core software stack ($1,200–$2,400/year)
Most niche-focused firms land their first five paying clients within 3-6 months when they publish weekly authority content and leverage referrals. Generalist firms often take twice as long because their offer blends into the noise.
Profitability depends on pricing:
– At $800/month per client, ~10 clients yields $8,000 MRR.
– At $2,000/month per client, just 4 clients achieves the same.
Note that niche advisory firms typically achieve higher net margins than generalists.
Yes. Remote-first firms can serve clients in all 50 states as long as they:
– Host apps on secure cloud servers.
– Use SOC 2–audited portals for data sharing.
– Comply with state tax nexus rules.
The tradeoff: you must invest in airtight security (MFA, encrypted backups, monitored hosting).
At minimum:
– Professional liability insurance → covers service errors/omissions.
– Cyber liability insurance → covers breaches, ransomware, and lawsuits.
Combined, these typically cost $800–$3,000/year, with higher rates for firms performing attest work.
Daily encrypted backups with off-site replication meet IRS Publication 4557 standards. To stay compliant, test restores quarterly, a backup is only valid if it can be restored.
TL;DR: How to Start an Accounting Firm in 2025
Starting an accounting firm in 2025 is less about paperwork and more about building a lean, secure, and credible business from day one.
- Market timing: Record business formations + slow legacy firms = best launch window in a decade.
- CPA vs Non-CPA: You don’t need a CPA license unless you plan to perform audits; most profitable niches don’t require one.
- No experience?: Pick a niche, earn fast credentials (EA, Intuit), post visible proof, and partner where needed.
- 7-step roadmap: Define a niche, choose the right structure, build a pricing model, set up IT, launch a brand/website, win early clients, and lock in compliance.
- Costs: $12k–$30k in year one, with ~$1k/month enough for a lean, compliant, remote-first setup.
- Tech stack: Dedicated hosted accounting apps, practice management, SOC 2 portals, MFA-secured email, automated backups.
- Avoid mistakes: Don’t underprice, skip cyber hygiene, stay generalist, neglect tested backups, or delay marketing.
- FAQs covered: Costs, clients needed for profitability, insurance, pricing, remote operations, and compliance.
The firms that win in 2025 will look less like “mini Big Fours” and more like secure, specialized, remote-first operators. Nail your niche, invest in IT and compliance, and you can scale faster than legacy firms weighed down by outdated systems.
