How to become a self-employed accountant: a step-by-step guide

Becoming a self-employed accountant opens the door to more freedom and flexibility. More professionals are stepping away from traditional roles to choose their own clients, set their own schedule, and run a business on their terms. But in the early stages, it’s easy to feel overwhelmed by everything you could be doing.

That’s why we created this guide for those of you who are just starting out on your own. From pricing to tech, this guide will help you prioritize what matters and give you a clear picture of what a successful solo practice looks like.

Step 1: Assess your skills and qualifications

Before taking on your first client, it’s worth taking a moment to assess your foundation. While you don’t need every qualification or skill figured out from day one, knowing where you stand — and where you want to grow — is key to building a business that lasts.

Degrees, licenses, and credentials

Not all successful solo accountants began as self-employed CPAs. Still, having certifications like CPA, CMA, or EA can make it easier to market your services, justify premium pricing, and win trust faster — especially in tax prep, audit, or advisory roles.

If you’re unsure where to start, we’ve put together a guide to the top accounting certifications, including what they cost and what they offer.

For those starting from scratch or switching careers, becoming a self-employed accountant doesn’t mean you need a formal degree. There are plenty of free or low-cost ways to build foundational knowledge. Explore our list of free accounting courses with certification to get started (many include credentials you can highlight to potential clients).

Essential skills to run an accounting firm

Being a successful self-employed accountant takes more than being an accountant — you become the CEO. And that calls for a blend of skills across three core areas: technical, soft, and managerial.

1. Technical skills

• Understanding GAAP and core accounting principles
• Preparing and interpreting financial statements
• Managing tax compliance across federal, state, and local levels
• Handling day-to-day bookkeeping and reconciliations
• Using accounting software like QuickBooks
• Navigating entity types, payroll systems, and sales tax filings

2. Soft skills

• Communicating financial information clearly to non-accountants
• Practicing active listening and empathy during client conversations
• Staying calm and solution-focused under pressure
• Managing expectations with professionalism and clarity
• Problem-solving when clients are disorganized or behind

3. Managerial skills

• Strategic thinking and decision-making
• Client relationship management and retention strategies
• Time management and task prioritization
• Goal setting, planning, and follow-through

Step 2: Determine your niche

Trying to serve everyone rarely works — especially when you’re starting out. Choosing a niche helps you stand out, build credibility faster, and attract the kind of clients you actually want to work with.

Your niche can take two forms: a service specialty and an industry focus.

Don’t overthink it. You’re not locked in forever — your niche can evolve as you grow. But early on, focus is your advantage.

Not sure where to start? Think about the industries you’ve worked in, the services you enjoy most, and the problems you’re best at solving.

Step 3: Set up your business

Once you’ve chosen your niche, it’s time to make things official. Setting up your business the right way from the start can save you time, headaches, and compliance issues down the road.

Legal structures

Your business structure affects everything from how you’re taxed to your legal liability. Here are the most common options for self-employed accountants:

• Sole proprietorship is the easiest and cheapest to set up, but there will be no legal separation between you and your business.
• LLC (limited liability company) offers personal liability protection and flexible tax options, making it a popular choice for solo practitioners.
• S-Corp or C-Corp may provide tax advantages as your income grows but comes with more complexity and administrative requirements.

If you’re unsure, many accountants start as sole proprietors or LLCs and revisit their structure as they grow.

Permits, licenses, and IDs

Next, you’ll need to register your business with your state or local government — typically through the Secretary of State’s website. You’ll also need to apply for an EIN (Employer Identification Number) from the IRS, even if you don’t plan to hire anyone yet.

Depending on your location and services, you may also need:

• A general business license
• A local operating permit
• A sales tax permit (if offering taxable services)
• A PTIN (Preparer Tax Identification Number) if you’re preparing taxes

Make sure to check with your state board of accountancy for any additional registration requirements.

Bank account

Keep your personal and business finances separate from day one. This helps you:

• Maintain clean, audit-ready financial records
• Track income and expenses accurately
• Simplify tax filing and deductions
• Build financial credibility with clients, vendors, and lenders

Some banks also offer integrations with accounting software, which can make monthly bookkeeping much easier.

Step 4: Select software

Choosing the right software is one of the most impactful decisions you’ll make as a self-employed accountant, as it determines efficiency, organization, and scalability.

At a minimum, you’ll need two core systems: one to support your accounting work and another to run the business side of your firm. Think: client communication, document exchange, task management, billing. These are the day-to-day activities that keep your practice moving — and if they’re spread across disconnected tools, it’s easy to lose time, drop the ball, or feel overwhelmed.

To avoid that, many self-employed accountants opt for all-in-one solutions. And that’s exactly what led Emma McDermott, a UK-based solo tax consultant, to switch from mundane, outdated systems to TaxDome. 

I’d say probably the biggest advantage of using TaxDome is that everything’s in one place, so it makes it a lot more straightforward for the tax advisor and the accountant, and it enables you to save a lot of time.

But it didn’t just improve her operations. It elevated her clients’ experience to the point that they started leaving reviews mentioning how much they loved using the portal.

You can read more (and hear directly from Emma) here.

Step 5: Attract more clients

Getting your first few clients is often the hardest — but once you’ve built a solid foundation and some early trust, client acquisition becomes easier and more organic.

Networking and referrals

Referrals remain one of the most reliable ways to grow a client base. Start with your existing network — former colleagues, friends, or local business owners — and let them know about your new practice. Partnering with professionals like other self-employed CPAs, financial advisors, or business coaches can also lead to regular referral opportunities.

If you’ve chosen to specialize as a bookkeeper — or offer bookkeeping services as part of your firm — we break down creative, low-cost strategies to build your client base in our guide on how to get bookkeeping clients.

Online marketing strategies

A strong online presence helps potential clients find you and trust you. Focus on building a simple website with clear messaging, then drive traffic through organic marketing:

• Search engine optimization (SEO) makes your firm discoverable when prospects Google terms like “bookkeeper near me” or “freelance tax advisor.” Our SEO guide for accountants will walk you through the basics and beyond.
• Social media platforms like LinkedIn are especially effective for B2B firms. Share tips, client wins, or behind-the-scenes processes to stay visible and build trust.
• Content marketing (e.g. writing blog posts or creating short videos) positions you as an expert and helps clients find answers to the exact problems you solve.

Want a full overview? Here’s our complete guide to marketing for accounting firms.

Professional directories

Getting listed in the right directories makes it easier for potential clients to find and trust your firm. Platforms like AICPA, CPAverify, and CPA Directory verify CPA credentials, which can be especially valuable if you’re a self-employed CPA. If you’re not a CPA, platforms like QuickBooks ProAdvisor and NAEA offer alternative ways to market your services and connect with businesses in need.

Step 6: Price your services

How you price your services sends a message — about the value you provide and the type of clients you want to attract. The right model can create trust, improve cash flow, and help you scale with confidence.

Here’s a quick comparison of the most common pricing models:

Whichever model you go with, clarity is key. Define your scope, outline your deliverables, and put everything in writing. Clear proposals and engagement letters save you time and give clients peace of mind.

Step 7: Grow your business

Once your firm is up and running, the focus shifts from starting to sustaining. And eventually scaling. Let’s go over the best ways to support your firm’s growth.

Time management

As a one-person firm, your time is your most limited resource. Block your calendar with intention, not just for client work, but for admin, learning, and breaks. Use recurring task lists and workflow automations to reduce mental load and avoid reinventing the wheel every month.

Need help setting boundaries? Our guide on work-life balance for accountants offers practical tips from firm owners who’ve been there.

Hiring and outsourcing

Growth can take many forms: hiring a part-time assistant, bringing on a subcontractor, or expanding your service offerings. Start with the tasks that pull you away from high-value work — like admin, inbox triage, or repetitive tasks — and offload those first.

Outsourcing is also a smart way to extend your capacity without taking on full-time hires.

Learning and upskilling

The accounting industry evolves fast: new tech, new regulations, new client expectations. Set aside time each quarter to learn something new. Follow industry blogs, join peer groups, attend conferences, or take a short course to sharpen your skills and stay relevant.

Long-term growth doesn’t happen by accident. The more intentional you are with your time and development, the more freedom you’ll have to build the kind of firm you actually want to run.

What running your firm looks like and how to do it all in one place

Building a solo practice means wearing a lot of hats. You’re managing projects, communicating, collecting info, chasing payments, trying to stay organized. It can feel like you’re building a machine while it’s already running.

Here’s what day-to-day operations look like in a well-run firm — and how you can handle it all inside TaxDome, without stitching together a dozen tools:

1. Start with a strong first impression
Build your firm’s website with TaxDome website builder and connect it to your CRM. Clients can learn about your services, book a consultation, and enter your pipeline.

2. Send clean, professional proposals
Create proposals and engagement letters that clients can e-sign on any device. Once signed, TaxDome automatically kicks off the next steps in your workflow.

3. Collect client info and documents — all in one place
Use TaxDome’s mobile-friendly organizers to gather everything from basic details to tax documents. Clients upload directly through their portal, and files go straight into their account — securely stored and ready when you need them.

4. Standardize your workflows
Build automated workflows for each service — with stages, deadlines, task assignments, and client notifications all managed inside TaxDome.

5. Give clients a portal they actually use
With TaxDome’s branded client portal and mobile app, clients can log in anytime to check progress, e-sign docs, pay invoices, and message you securely.

6. Automate your billing
Send invoices, collect payments, and lock document access until invoices are paid — all built into your TaxDome billing setup.

7. Keep communication organized
TaxDome’s secure messaging keeps conversations and to-dos in one place. You can assign tasks to clients, follow up on requests, and cut down on email clutter.

8. Track how your firm is really doing
Use built-in reporting to monitor task progress, payment status, pipeline activity, and overall firm performance — without exporting a thing.

With TaxDome, you don’t need to piece it all together yourself. You get one integrated system that helps you stay organized, save time, and grow — whether you’re serving 10 clients or 1000.

Final thoughts

Starting your own accounting firm is a big move. It takes planning, persistence, and a willingness to build systems that work for you. And while the early days come with plenty of unknowns, you don’t have to figure everything out alone (or piece it together with 10 different tools). 

Most self-employed accountants start simple, then build structure and confidence as they go. You can do the same. And TaxDome is here to support you from your first proposal to your hundredth client.

Wherever you are in your journey, you’ve already taken the most important step: getting started.