How does buying an accounting practice compare with starting one?
Buying an accounting practice can come with clients, staff and income from the first day, but you inherit the previous owner’s habits and the risk that clients leave. Starting one lets you choose your niche, software and pace, but you build the client base and the cash flow yourself. Each route has a different early risk.
An accountant who wants a practice of their own has two broad routes. They can take over an existing firm or open a new one. Neither is easier in every respect. The better question is which set of problems you would rather solve, and whether your money, your experience and your family situation suit that set.
What you get on day one
A purchase brings an existing client list, usually staff, files, software and a seasonal calendar already in motion. Income starts quickly, which matters if you must cover a loan. Starting fresh means no clients on the first morning. You can spend that time building the firm you want, but you must live on savings until work arrives.
Client attrition and seasonality
Clients of a bought practice chose the former owner. Some will stay out of habit, and some will leave after the first season. Ask how the seller plans to introduce you, and read what buyers tend to underestimate. A new firm faces the opposite problem, with a slow first season and a heavy workload packed into a few months once clients do arrive.
Control, niche and pace
With a start-up, you pick your niche, fee approach, software and hours. With a purchase, you inherit them, and changing them can unsettle clients. If you want to change a lot, ask whether buying saves you anything. Think about how much you want to keep the firm as it is. This guide on buying an accounting practice sets out the steps.
Questions to settle before choosing
- How long could you live without firm income?
- Do you have a niche that would attract clients without help?
- Can you finance a purchase, and would a lender want to see a plan?
- Ask your professional body and your lawyer what, if anything, must be reported on a change of firm.
Related reading
14 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat do buyers of an accounting practice often underestimate?
- Expert answerHow do I find an accounting practice for sale?
- GuideBuying an accounting firm or practice in Canada
- Expert answerHow is cloud accounting software handed over when a bookkeeping firm is sold?
- Expert answerAm I liable for past malpractice claims if I buy a professional practice?
- ChecklistLetter of intent preparation checklist
- Expert answerShould I keep the practice manager when I buy an accounting practice?
- Expert answerWhat should I change first after buying an accounting practice?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Chartered Professional Accountants of OntarioRegulatorReport Firm Changes (Internet Archive copy of CPA Ontario’s official page, captured 2025-05-31)
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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