For ‘young’ people, starting your very own business and becoming self employed is the most suitable alternative to the ever growing hard to get 9 to 5 jobs. Starting a business is always the best alternative to the ever elusive jobs.
A survey by the Kenya National Bureau of Statistics (KNBS) revealed that seven (7) million Kenyans are unemployed. An additional figure of over 1.4 million are actively looking for employment. With those figures, it is easy to see why more and more people are looking for alternatives.
Because we know very many business ventures require huge amounts of capital to get started, this new How To series will only show you how to start and execute several small business that require capital from as little as 5,000 Kenyan Shillings. Thus giving you the keys to the kingdom of starting a profitable business with little or no capital.
If you are also just looking for a side hustle to maybe supplement your 9 to 5 or full time job, this is for you.
All that you need to thrive in these businesses besides capital, is good customer service of course, great managerial skills, a suitable business location, and a clear cut vision.
Today’s article will show you how to set up your very own Accounting Firm business in Kenya. While this is not exactly a 5,000 Kenyan Shillings capital business, I am sure you would agree that this is also a very viable option.
An Accounting Firm, is company that specializes in providing accounting services to clients. Services which include the handling of a client’s payroll, accounts receivable, accounts payable, as well as taxes, and other services.
How To Start An Accounting Firm Business In Kenya
Just how much do you need to set up an Accounting Firm business? What paperwork, and or equipment are you required to have in Kenya? If you are considering this option, here is everything you will need to kickstart your Accounting Firm business in Kenya.
- Acquire The Needed Training. Yes, running an accounting firm business definitely requires some training. Especially if you have not done this professionally before. The training will enable you better understand the technicalities behind your chosen business.You can get the needed training by becoming a Certified Public Accountant (CPA). The Certified Public Accountant (CPA) qualification is achieved, after you have successfully gone through the training in all levels of the Certified Public Accountant (CPA) course. The Certified Public Accountant (CPA) course has tests that are broken down into 3 parts. Each of the 3 parts, comes with 2 sections. What this means is Part 1 will have sections 1 and 2, Part 2 will have sections 3 and 4 and Part 3 will have sections 5 and 6. All Certified Public Accountant (CPA) exams are set by the Kenya Accountants and Secretaries National Examinations Board (KASNEB).
- Have A Business Plan. For every business, having an effective and concise business plan is very important.
- Figure Out Your Market. It is very important that you figure out your market. Especially before starting your Accounting Firm business. Your potential customers will be every single business that is legal on the face of the Earth. I mean look at it; you cannot be a successful business, without making sure their accounting is in order.
- Figure Out How To Raise Capital. The Accounting Firm business like any other business, requires capital investment. After completing your business plan, knowing your market and finding a location, this should be your next line of action. Although Personal funds are sometimes the primary source of funding for many new businesses, doing just that may not be enough. Taking on a financial partner is your best bet. If obtaining a business loan from financial institutions proves difficult, the next option should be getting it from friends and family. Loan arrangements in this setting are usually much more flexible as they come with much lower interest rates. All you would need to do is convince said friends and family, of the profitability of your business. Please make sure however, that you pay back the money and in good time too, so as to maintain confidence which you would need if you would require money from them in the future.
- Create A Unique Logo. The importance of a very well done Logo cannot be over emphasized. Especially with regards to having a positive first impression on your potential clients. As an accounting firm, your logo and how it hits anyone who sees it, might just be the very first introduction of your presence, to your future clients. With this in mind, make sure you create a logo that stands out and sets you apart from the competition.
- Choose The Most Suitable Business Structure For Your Accounting Firm. Choosing abusiness structure can determine your personal liability, how much you pay in taxes, as well as your ability to raise financing. This is why it is very important that you choose the business structure that is most suitable from the get go because changing structures later on, could lead to tax consequences. Be sure to consult a business accountant and a lawyer too before deciding if your Accounting Firm would be a Sole Proprietorship, a Partnership, a Corporation or a Limited Liability Company (LLC).
- Register The Name Of Your Accounting Firm. You will need to register the name of your Accounting Firm startup if you plan to run it as a legitimate business. The business name registration would cost you around 1,000 Kenyan Shillings.
- Register With And Obtain A License From The Certified Public Accountants of Kenya (ICPAK). You will need to register with and obtain a license from the Institute of Certified Public Accountants of Kenya (ICPAK). The institution which was established in 1978, is a member of the Pan-African Federation of Accountants (PAFA) and the International Federation of Accountants (IFAC); the global umbrella body for the accountancy profession. You must also be a registered account with the Certified Public Accountants of Kenya (ICPAK).
- A Business License Or Permit.This is one of the most fundamental licences that businesses in Kenya are required to have before commencing operations so yes, you will definitely need one for your Accounting Firm. Although the cost of a business licence or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
- A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Accounting Firm will succeed. Especially with regards to clients who prefer to meet up in official settings or premises. Find a location that is both ideal and easily accessible.
- Make Sure Your Accounting Firm Is Insured. Although nobody likes to incur extra costs, Insurance is one essential part of starting any business.
- Secure A Fire Clearance Certificate. This particular certificate, is received after undergoing an inspection which you pay for. It also involves getting advice regarding the guidelines of protection against fire, and the installation of the required equipment like fire extinguishers.
- Be Trained In Sales. Ensure that you as well as your staff are well trained in sales. This will especially come in handy when your business begins to grow and you are trying to win over new clients and maintain already existing ones.
- Plan Out Your Marketing. Next after figuring out your target market, should be planning out your marketing. Yes, your Accounting Firm business just like any other business venture, definitely needs marketing too. Think about it; what better way is there to get tons of clients, than by marketing your Accounting Firm. Learn how to get the attention of your target market. Would discounts work? Or referrals or both? How about posters, sponsored adverts on social media and fliers. Email marketing for example, is one cost-effective way that is also very efficient in building the customer base for your Accounting Firm business. If you have a website for your business, you can gather email addresses of people who visit your site. Fliers, are also another cost-effective way to market. Flyers are one ‘page’ advertisement pieces that can be created at little or no cost. You can distribute these to people, in and around the area where your Accounting Firm business will be located. Find out what is most effective for you and use that or a combination of all of them.
- Brand Yourself As Authority In The Accounting Field. Clients and potential clients tend to believe in businesses who are perceived as Authorities or seen as authoritative in their fields. When you are making a pitch, make sure you are confident.
- Document The Work Your Advertising Agency Does. The best way to win over clients will be to impress them with testimonials of your work. Be sure to document all your work. You can then upload and display work you have done for various clients (who of course approve of your doing this), on your social media pages and website.
- Make Sure Your Accounting Firm Has An Online Presence. Yes, you need to have an online presence. This includes creating a Facebook page, as well as Twitter and Instagram accounts for your business. You can also get a website created for your business as well, to further attract larger customers who may require your services in bulk. Make sure the website is easy to navigate, make sure your content is also engaging. Ensure that all the relevant information about your company (which includes the contact details for your business and testimonials) is included, as well as the terms & conditions and privacy policy. Be sure to hire a professional for this, so as to ensure that the website is very well done and looks presentable. The hired professional, will also make sure that your website is well maintained and updated regularly. Creating a LinkedIn profile for your business will also be a good look and will help you further network with other businesses. Just make sure that you update your LinkedIn.
- Get An Employer Identification Number. If you will be looking to set up checking accounts for your business and or hire employees, you will need an Employer Identification Number. To get one, simply get in touch with Kenya Revenue Authority which is Kenya’s internal revenue service.
- Employ More hands. No one is an island, you really cannot carry out all the daily activities of an Accounting Firm efficiently, on your own. Just think of all the numerous accounts you would handle. Especially when your customer base, begins to grow.
- Make Sure The Accounting For Your Accounting Firm Is In Order. You cannot take care of the accounting of your clients if that of your own company is not done right.Make sure you always have a record of your expenses as well as the income your business generates. Doing this, will ensure that you have a full understanding of how your business is performing financially. It will also help you when it’s time to file your annual taxes.
- Figure Out Payment Arrangements That Work Best For Your Customers. You need to know the payment methods and arrangements that would work best for your customers and potential customers i.e if they would prefer to pay via M-Pesa, T-Kash, Airtel Money, via POS or in cash. Knowing this will help you offer more payment options and also be more equipped to serve them better.
- Talk To Others Who Have Done This Before You. No man is an island. While a number of established business owners are more than happy to give advice to new entrepreneurs, it can take a while to find one who will be willing to do so. The wait however, will worth it. Talk to entrepreneurs who have gone into or are still in the Accounting Firm business. Examine, study and understand their various business models and strategies. You never know, you just might pick up one or two nuggets of wisdom from them.
And that is it! All you need to know about starting your very own Accounting Firm in Kenya.
Is the Accounting Firm business, a suitable venture for you to go into? That question, is left for you to think on and answer. This writer’s goal is to open your eyes to the various entrepreneurial opportunities that abound in the country.
One important thing besides the tips provided here, is to be good at what you do. Continue to think of new ideas and ways to expand and grow your business.
Also while the prospects are very promising and running an Accounting Firm might seem easy, please have a realistic approach as well. It still requires a fair amount of dedication and patience regardless and as with any business, there is a chance that you might incur losses. Especially at the beginning, so please keep your overheads low.
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