Practice Checklist | Buying An Accounting

: Secure pre-approval. Expect down payments of 10–20%, with the remainder often covered by bank loans or seller notes. 2. Deep Due Diligence

: Audit the "tech stack." A firm still relying on local servers and paper files carries significant post-acquisition integration costs.

: Break down income by type. Monthly recurring advisory fees are worth 3–5x more than one-time tax prep revenue due to their predictability. buying an accounting practice checklist

Before looking at listings, define your "Ideal Firm Profile" to avoid mismatched acquisitions that lead to high client churn.

: Ensure no single client represents more than 5% of total revenue. A 90%+ annual retention rate over three years is the industry benchmark for healthy firms. : Secure pre-approval

: Verify active licenses in all operating jurisdictions and review history for professional liability claims or ongoing HR disputes. 3. Valuation & Deal Structure Is Buying an Accounting Practice Right for You? | AICPA

: Decide if you require a local brick-and-mortar presence or if you are open to a remote-first practice with lower overhead. Deep Due Diligence : Audit the "tech stack

: If the current owner is the sole point of contact for major accounts, retention risk skyrockets. Look for firms where staff already manage relationships.