No business can flourish without hiring a financial expert to monitor cash flow and profitability, and ensure compliance with the IRS. Hence financial advisors/consultants with credentials such as clearing the CPA exam are a sought-after resource in the market. As a Certified Public Accountant, you have plenty of growth opportunities at your disposal.
However, what if you, as a CPA, want to start your own business and become an entrepreneur? Some professionals prefer to stay out of the traditional rat race in the corporate world for better job positions and pay scales. So the quick answer is, yes, you can start your own thing and be a thing among many. For such CPAs, there are more upsides than downsides to embarking on the journey of an entrepreneur. Here are the four reasons CPAs make great entrepreneurs.
CPAs are credible
Every startup needs funds and investors that can trust their idea and inject their money into their business. CPAs are skilled enough to compile and present the finances of the new business venture. It is a highly prestigious certification that can make startups look more credible and financially stable. Whenever there is a need to show growth projections to potential investors, their knowledge helps pitch the idea of the new product backed by strong insights. Certified accountants have a greater chance of influencing decision-makers with their strong grip on accounting and finance.
In addition, they are also well versed in creating effective business strategies and managing a cash flow. The success and expansion of every business are primarily driven by cash flow. The CPA study material prepares them to design financial models and growth projections vital to attracting investments and expanding the business.
CPAs can self-fund their startups
Well, technically, anyone with deep pockets can. But having a sound accounting background proves fruitful in setting up the business. One of the most rewarding opportunities for CPAs is their ability to self-finance their new business. With in-demand skills, they can provide their services on an hourly or project basis. Since these services can come at a pretty penny, it gives them enough leverage to raise capital for their business venture.
For instance, they can start consultancy firms that can never go out of demand with the growing needs of the marketplace. In addition, they can spend the busy season by giving consultation to any firm and pay attention to their business during slow days. In this way, CPAs have a chance to gain experience in a wide range of businesses across various industries. It may lead them to develop an idea of the need of the hour and how their startups can meet the growing demands of the clients.
CPAs are risk takers
Starting a journey as an entrepreneur is a roller coaster ride than going for a stable and high-paying job. It is like an exhilarating and adrenaline rush experience where entrepreneurs are supposed to make sound and quick decisions in a fast-paced environment. With a good skill set, these professionals are more prone to take risks in highly competitive markets. Their risk-taking nature allows them to measure the outcomes from the potential opportunities. With an ability to identify potential risks and devise business strategies accordingly, they stand out among other accounting professionals as entrepreneurs.
However, in the dynamic market of entrepreneurship, sometimes, outcomes fail to meet the growth targets. With an advantage of in-demand professionals, they can always avail themselves of rewarding career opportunities in any sector if things turn out wrong. CPAs always have a backup plan to secure a full-time place in the industry. It enables them to take calculated risks more easily to expand their startups.
CPAs are detail-oriented with sound accounting skills
Most entrepreneurs start with an idea without going into the nitty-gritty of the product or service. What makes CPAs different from other entrepreneurs is their ability to go the extra mile and dig deeper into the details and processes. To transform an idea into a finalized product. A CPAs’ skills help them figure out the details and understand the process before launching a product. Their analytical skills give them a competitive edge. They can fine-tune the project and define the course of action to take the product to the final stage. CPAs with financial analysis skills better analyze the details within the holistic view.
CPAs’ prowess in accounts helps them to deal with hefty tasks such as budgeting, payroll, bookkeeping, tax filing, IRS paperwork, cash reconciliations, etc. Having a strong command of accounting software is an added advantage. Being professional accountants themselves, they don’t have to rely on other accountants to navigate around Quickbooks, TurboTax, and other accounting software. It not only saves them from spending money on essential business operations but also allows them to assess their startups’ progress.
Using your talent and skills to grow your own business is always the best approach. Being your own boss gives you the freedom to conduct business on your own terms. Having an accounting background gives CPAs the privilege to set up their business. So if you’re a certified public accountant, consider becoming an employer rather than an employee.