If you’ve landed on this article page, you’re probably searching for a
good business idea—an idea that’s light on the pocket but heavy on
returns, promising both a fulfilling journey and potential profit.
|
How To Start Accounting Business In Nigeria
Every business needs accounting processes to be successful. Some
entrepreneurs find it difficult to put their books in order and
some cannot afford to employ an accountant on a full times
basis. As a result, there is a huge opportunity for individuals
with accounting skills. Accounting business involves keeping
records of income and expenditures, taxes, and other financial
obligations as may be required by an organisation.
Over 95% of businesses today are, in fact, small enterprises,
and 60% of them acknowledge that they don’t know enough about
finances and bookkeeping, as they thought they did upon starting
the business. About 42% of businesses receive business advice
from their accountants, and 14% of these businesses outsource
their bookkeeping. Bookkeeping holds the second-largest number
of professionals in the accounting sector. Accounting, auditing
and bookkeeping are services that dominate the present global
market.
What Is Accounting?
Accounting is the process of recording, classifying, analysing,
summarising, and interpreting the financial statement of an
organisation. Therefore, accounting business involves helping
business owners understand the state of their finances, keeping
proper record of their trade, profit and loss account,
preparation and completion of tax returns, proposing solutions
to business financial roadblocks and many more.
What Are The Costs Involved In Starting An Accounting Business?
Actually, starting an accounting firm does not cost much. The
basic requirement is having a sound accounting knowledge.
Typically, here are the major costs you’ll incur as a startup in
this business: Office Space, Accounting software, Computer
systems, Registration and license fee, Internet, Printer,
Furniture, Stationeries, Insurance, Salaries
How to start accounting business
Institute Of Chartered Accountants Of Nigeria (ICAN)
To be recognised as a professional accountant in Nigeria, it is
imperative to get certified with ICAN, the recognised body for
professional accountants in Nigeria. The interesting thing about
getting certified with ICAN is that it gives you global
recognition. Also, if you don’t have a university degree in
Accounting, you can become a chartered accountant by just
writing ICAN examinations.
When you successfully complete the examination, you will qualify
as Associate Chartered Accountant (ACA). A member of ICAN is not
allowed to set up a public practice as an accountant until
he/she has applied for, and has been granted a license to
practice by the council.
The license to practice will be issued only to those members who
have been trained in professional offices and have acquired the
minimum practical training: 36 months for those with accounting
qualifications, while those with non-accounting qualifications
require not less than 42 months.
Who Are The Target Market Of An Accounting Business
Your target markets are large businesses and corporations with
myriad sources of income. Small business owners tend to handle
their accounting obligations themselves using the available
accounting software.
How Profitable Is Accounting Business?
The profitability depends on several factors such as the size of
the business you are working with, the scope of the work you are
doing for them, the region in which you are located, and several
other factors.
Regardless, if you secure a high profile business with high
revenue, you can charge hourly and this can be thousands of
naira. Actually, a single accounting job can land you six
figures. So, profitability and pricing are at your discretion
and will depend on how professional you are.
When considering accounting business, you must pick a niche
you’ll like to operate in. Here are some of the niches you can
venture into:
1. Auditing
Auditing business involves examining a business’s financial
records to verify they are accurate. It is done through a
systematic review of their transactions.
Actually, many businesses have routine audits annually and even
if a company have an internal auditor, they still hire the
service of an external auditor. ICAN license is a requirement if
you want to run an audit firm in Nigeria.
2. Pure Accounting
This specialises in helping small, medium, and large businesses
with cost-effective solutions to their accounting, bookkeeping
and other financial needs.
3. Consulting
Accounting consultants play a crucial role in helping businesses
enhance performance and comply with changing regulations.
Additionally, they help businesses analyse their accounting
processes, identify the best accounting process that suits their
business type, identify financial issues, and proffer workable
solutions to them. Unlike auditing, you don’t need an ICAN
license to run an accounting consulting business.
4. Forensic Accounting
This is quite different and many people involved in the business
are specially trained for it. Basically, forensic accounting is
a mix of accounting and investigative techniques used to
discover financial crimes. Also, forensic accountants explain
the nature of the financial crime to the courts.
5. Training
Here is another accounting business to explore. There are
several accounting platforms offering accounting training to
people. You can open a social media account for the purpose of
training people in financial education.
There are several people out there who do not understand how to
go about their finances both personally and as a business.
Hence, you can offer to train them on topics such as savings,
investment, and how to use accounting software (MS Excel,
Peachtree, Quickbooks, Sage Intacct, Xero, Desktop Pro, etc).
In addition to that, you can start a tutorial center for
students who want to write ICAN, ACCA, and other
accounting-related professional exams.
Launching an accounting and tax advisory firm in Nigeria is a
rewarding path to business ownership, even if you have limited
prior experience. With proper preparation and execution, you can
build a sustainable practice providing essential services to
local businesses.
With dedication and persistence, you can successfully start an
accounting and tax advisory firm in Nigeria even without
extensive prior experience. Stay committed to ongoing learning
and client service excellence. Leverage digital tools and
networks. The essential accounting needs of Nigerian businesses
present a major opportunity.
Starting a bookkeeping firm is like starting any small business
– it requires a lot of work. However, industry and consulting
firms list bookkeeping firms as one of the single most
profitable small businesses a person can start right now. The
bookkeeping business in Nigeria can be a lucrative and
profitable venture to start-up, due to its vast market demand
and on your ability to build a wide network. If you’re looking
for a lucrative business to venture into, the bookkeeping
business in Nigeria is a great option to explore.
Get our Practical Training Guide on how to start an Accounting
Firm in Nigeria. If you are interested in starting an Accounting
Firm in Nigeria , you can reach us today so that we can work
with you to breathe life into your Accounting
business idea. Our commitment is to help you make the
right decisions and get the best results with the budget you
have available.
|
