Buying An Accounting Practice Checklist -

: Decide if you require a local brick-and-mortar presence or if you are open to a remote-first practice with lower overhead.

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

This checklist breaks down the acquisition process into four critical phases: initial strategy, deep due diligence, valuation, and post-close transition. 1. Pre-Acquisition Strategy : Decide if you require a local brick-and-mortar

: 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. : Verify active licenses in all operating jurisdictions

: 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

Due diligence for an accounting firm is not a standard audit; it is a search for "red flags" in the client base and staff culture.

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