Professional Services
Business Funding for Accounting Firms
Accounting firms have a built-in seasonality problem. Tax season generates the majority of revenue in a compressed window, but you are paying salaries, rent, and software licenses year round. Growing a firm means hiring CPAs and enrolled agents before the new clients arrive, because you cannot onboard staff mid-season. Acquiring another practice is the fastest way to grow, and practice acquisitions in accounting are well-understood by lenders.
Common Uses
What Accounting Firms Use Funding For
- Acquire a retiring CPA's client book and practice assets
- Hire additional CPAs, enrolled agents, and support staff before tax season
- Invest in practice management software, tax preparation platforms, and cloud infrastructure
- Lease and build out a professional office in a location convenient for clients
Funding Options
Best Funding Types for Accounting Firms
Practice Acquisition Loan
The most common loan in accounting. Lenders like Live Oak Bank and Oak Street Funding specialize in CPA practice acquisitions and underwrite based on the client retention rate, recurring revenue, and historical profitability of the target practice.
Business Line of Credit
Bridge the cash flow gap between tax season peaks and the quieter months of summer and fall. A revolving line lets you maintain payroll and overhead without touching reserves.
SBA 7(a) Loan
Fund a practice acquisition, office buildout, or technology upgrade. SBA loans work well for first-time buyers acquiring a CPA practice because they allow up to 10-year terms on the goodwill portion of the purchase.
What Lenders Look For
Qualification Notes for Accounting Firms
Related Industries
Related Professional Services Funding
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