According to Statista, leading global accounting firms PricewaterhouseCoopers (PwC), Deloitte, KPMG, and Ernst & Young (EY) have collectively earned over $167 billion in 2021 alone. But starting a new business in this industry is complex and often comes with its own unique set of challenges.
Fortunately, there are several ways that the government can help new accounting firms get on their feet and grow. Here are five of them.
1. Offer tax breaks.
Perhaps the most obvious way the government can help new accounting firms is by offering tax breaks. This could take the form of reduced taxes on business income or payroll, or it could be something as simple as exempting small businesses from specific filing requirements. Either way, any little bit helps when you’re just starting out.
In fact, in the United Kingdom, a type of tax relief called a capital allowance allows businesses to deduct the cost of certain capital expenditures from their taxable income. This includes things like office furniture, computer equipment, and vehicles.
If your business spends a lot on these kinds of expenses, capital allowances could save you a significant amount of money. However, make sure to get to know capital allowance specialists for accounting firms to maximize your deductions. These professionals will be able to help you identify which expenses are eligible and make sure you don’t miss out on any deductions. They can also assist every step of the way, so all you have to do is focus on running your business.
2. Provide funding for marketing and advertising.
Another way the government can help new accounting firms grow is by providing funding for marketing and advertising expenses. This can be a great way to get your name out there and attract new clients.
For instance, the Canada Small Business Financing Program offers loans of up to $1 million to help small businesses with their start-up costs. This includes expenses like marketing, advertising, and professional fees.
To be eligible, your business must have gross revenues of less than $5 million per year and meet a few other criteria. However, if you do qualify, this could be a great way to get the funding you need to get your marketing and advertising efforts off the ground.
3. Offer training and development programs.
Many accounting firms offer training and development programs to their employees, but these can be expensive for small businesses to put on themselves. The government can help by providing subsidies or even organizing and hosting these programs.
Valuable information and skills to learn in these programs can include updates on current tax laws, how to use new accounting software, and tips on growing your business. This will not only help new accounting firms save money but also allow them to provide their employees with valuable training that will help them be better accountants. This, in turn, will lead to happier clients and more business for the firm.
4. Give access to government contracts.
One way the government can help new accounting firms is by giving them access to government contracts. These contracts can provide a steady stream of work and income, which can help when you’re starting out. Moreover, they can also help you gain experience working with different types of clients and businesses, which can be invaluable as you grow your firm.
To get the most out of this, make sure to do your research and target the contracts that are the best fit for your firm. There’s no point in going after a contract that’s too large or complex for you to handle, as this will only lead to frustration and lost business.
5. Connect firms with mentors and resources.
Finally, the government can help new accounting firms by connecting them with mentors and resources who can help them navigate the challenges of starting and growing a business. These mentors can provide advice and guidance on everything from marketing to financial planning, and they can be an excellent resource for new companies that are just getting started.
It doesn’t also have to be a one-way street, as mentorship programs can also be a great way for accounting firms to give back to the community and help other businesses grow. This is a win-win for everyone involved, and it’s something that the government can help facilitate.
Starting a new accounting firm comes with its unique set of challenges, but there are several ways that the government can help. From offering tax breaks to providing funding for marketing and advertising, the government can play a significant role in helping new accounting firms get off the ground and start growing. So if you’re thinking about starting one, don’t forget to take advantage of all the resources and assistance the government offers. It could make all the difference in getting your business off to a successful start.