Buying A Cpa Firm Due Diligence ★ Essential & Pro

: Break down revenue by service line. Recurring fees (e.g., CAS, monthly bookkeeping) typically command higher valuation multiples than one-time tax prep or lumpy audit fees.

In a CPA firm sale, you are essentially buying a book of business; its "stickiness" is paramount. buying a cpa firm due diligence

The goal is to verify that reported income matches actual cash flows and tax filings. : Break down revenue by service line

Due diligence for a CPA firm acquisition involves verifying that the practice's revenue is sustainable, its client base is transferable, and its operational foundation is stable. A solid due diligence report should evaluate four core pillars: , Client Base , Staffing , and Legal/Regulatory compliance . 1. Financial Performance & Quality of Earnings its client base is transferable