Accounting Business for Sale How to Buy and Evaluate an Accounting Firm
Purchasing an accounting business for sale can be a lucrative investment, whether you’re a CPA, bookkeeper, or entrepreneur looking to enter the financial services industry. An established accounting firm provides instant revenue, an existing client base, and brand recognition, making it an attractive option for professionals seeking business ownership.
This guide explores how to find an accounting business for sale, key factors to consider before purchasing, and tips for ensuring a profitable acquisition.
Why Buy an Accounting Business?
Buying an established accounting firm offers several advantages over starting from scratch, including:
- Existing Client Base โ No need to build a customer base from the ground up.
- Immediate Revenue โ Generate income from the first day of ownership.
- Brand Recognition & Reputation โ An established firm already has market credibility.
- Trained Employees & Systems โ Many accounting businesses come with an experienced staff and operational systems in place.
- Growth Opportunities โ Expand services like tax planning, financial consulting, and bookkeeping to increase profitability.
By acquiring an accounting practice, buyers reduce the risks associated with starting a new business and can focus on growth rather than building a client list from scratch.
How to Find an Accounting Business for Sale
Several platforms and business brokerage firms specialize in listing accounting businesses for sale.
Best Places to Search for Accounting Firms for Sale
- Accounting Practice Sales (APS) โ One of the largest brokers for CPA firms and tax businesses.
- BizBuySell โ A leading online marketplace for buying and selling businesses, including accounting firms.
- BizQuest โ Features thousands of business listings, including CPA practices and bookkeeping businesses.
- Local CPA Networks & Associations โ Networking with other professionals can lead to off-market opportunities.
- Mergers & Acquisitions Firms โ Specialized brokers assist in buying mid-sized and large accounting firms.
Current Listings for Accounting Businesses for Sale (Examples from Nevada)
1. CPA & Accounting Practice โ Las Vegas
- Annual Revenue: $1,380,000
- Cash Flow: $416,422
- Services: Tax preparation, financial planning, consulting.
- Source: BizQuest
2. Home-Based Tax & Bookkeeping Business โ Clark County
- Asking Price: $149,000
- Cash Flow: $72,186
- Description: Established home-based accounting business.
- Source: BizQuest
3. Bookkeeping & Tax Practice โ Las Vegas
- Annual Revenue: $130,000
- Asking Price: $150,000
- Clients: 34 bookkeeping clients, 131 tax clients.
- Source: Accounting Practice Sales
Before purchasing, carefully evaluate the financials, client retention rates, and potential for growth.
Key Factors to Consider Before Buying an Accounting Firm
Purchasing an accounting firm is a major investment. Here are the most important factors to assess before closing a deal.
1. Client Base & Retention Rates
- How many active clients does the firm have?
- What is the average client retention rate?
- Do clients have long-term contracts or yearly tax engagements?
A high retention rate is crucial for maintaining revenue stability after the acquisition.
2. Revenue Sources & Profitability
- What percentage of revenue comes from tax preparation, bookkeeping, audits, and consulting?
- Are there recurring clients or mainly seasonal customers?
- What is the firmโs profit margin after expenses?
Firms with diversified revenue streams (tax planning, CFO services, payroll, business consulting) are more resilient to economic changes.
3. Business Reputation & Client Satisfaction
- Check Google Reviews, Better Business Bureau (BBB) ratings, and industry referrals.
- Poor reviews or high client turnover could indicate problems with service quality.
A firm with a strong reputation is easier to grow and maintain.
4. Employee & Staff Considerations
- Will key employees stay after the acquisition?
- Do employees have employment contracts?
- Are salaries and benefits competitive?
An experienced staff reduces training costs and ensures continuity in client relationships.
5. Operational Systems & Technology
- What accounting software and CRM tools does the firm use?
- Are client records well-organized and digitized?
- Is the firm cloud-based or reliant on paper-based systems?
Upgrading outdated systems may be necessary but could also add unexpected costs.
6. Industry Regulations & Compliance
- Ensure the firm follows GAAP (Generally Accepted Accounting Principles).
- Verify compliance with IRS and state tax regulations.
- If the firm handles SEC audits, additional licensing may be required.
Failure to comply with industry regulations can result in fines and legal complications.
7. Reason for Sale
- Is the owner retiring, or is there a decline in revenue?
- Are there hidden financial issues or client dissatisfaction?
A sellerโs reason for exit can reveal potential red flags in the business.
Financing Options for Buying an Accounting Firm
If you donโt have enough capital, several financing options can help you purchase an accounting business:
- SBA Loans โ The Small Business Administration offers loans with favorable terms for business acquisitions.
- Bank Loans โ Traditional banks provide commercial business loans based on revenue history.
- Seller Financing โ Some sellers allow buyers to pay in installments.
- Private Investors โ Partnering with investors can provide additional capital.
Carefully analyze financing options to ensure you can afford the acquisition and maintain profitability.
How to Successfully Transition After Buying an Accounting Business
After acquiring an accounting firm, focus on client retention and business growth.
1. Build Relationships with Existing Clients
- Schedule introductory meetings with key clients.
- Ensure clients feel confident in the transition.
- Offer incentives for client referrals.
2. Retain Key Employees
- Provide competitive salaries and benefits.
- Recognize employee contributions to keep morale high.
3. Upgrade Technology & Services
- Implement cloud accounting solutions for efficiency.
- Expand services like financial consulting and CFO advisory to attract new clients.
4. Develop a Growth Strategy
- Market services through LinkedIn, networking events, and local business groups.
- Offer discounted tax preparation for first-time clients.
- Seek partnerships with law firms and financial planners for referrals.
A smooth transition and strong marketing strategy will help increase revenue and retain clients.
Final Thoughts on Buying an Accounting Business
Purchasing an accounting business for sale can be a highly profitable venture if done correctly. By conducting thorough due diligence, understanding the firmโs client base, financials, and operational structure, and planning a strong transition strategy, you can successfully own and grow an accounting firm.
Whether you’re a CPA looking to expand or an entrepreneur entering the industry, buying an established accounting practice can provide long-term financial success.
