Dreams into reality; tips on starting your own practice.

• Author: Dehner, Daniel P.
• Position: Practice management

Starting our own business is something many of us have dreamt about at some point in our careers. For most, though, it remains just a dream. However, starting something you can call your own can be the most rewarding professional experience. My version of the American Dream has been an amazing experience, but the road has had its bumps. If you're thinking about starting your own firm, consider this your CliffsNotes for avoiding some major pitfalls. And if you think you don't have the ability to go out on your own. think again.

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A Foundation of Trust, Expertise

Begin a new venture with people you trust--people you would bet your life savings on because that's what you are doing when you launch your practice.

Planning to start an accounting practice is similar to planning a wedding: if you try to do it yourself, you will miss many important details. So to whom do you turn when you want to start your own accounting firm? I did what most auditors love to do: I made a list.

The list started innocently and small, with the obvious entries such as computers, phones, office furniture and supplies. As I solicited input from those who have gone through this process, the list expanded to include some not so obvious entries, such as making sure you report new employees to the Employment Development Department in a timely fashion.

The beauty of starting your own firm is that you can do it your way, but to increase your shot at success, ask for help. There are more than enough qualified experts who can guide you through the overwhelming requirements that come with starting a business.

Here are a few musts to help achieve a (relatively) smooth start:

Hire an attorney, preferably with experience in this specific area. There are many legal considerations when starting your own firm, such as what structure (LLP, S Corporation, etc.) you should choose, legal elements of engagement letters and trademark issues. Only a qualified attorney can help you make the best decisions for you and your firm.

Hire a tax expert to help plan your start-up expenditures and tax structure. It may come as a surprise to hear a fellow CPA suggest that you should hire another CPA to help with your tax planning. But I'm the first to admit that I'm far from qualified when it comes to making sure I have adequately addressed all of the critical tax implications of starting a business.

For example, determining your "start date" for your year-end tax return has...