Florida has over 36,000 Certified Public Accountants (CPAs) and 5,000 accounting and tax firms. This may seem like a lot until you compare it with other states. In Florida, these numbers mean that there’s a CPA for every 613 people. But in New York, the CPA to individual ratio is 1:391, in California, it’s 1:433, and in Illinois, it’s 1:502.

For accounting and tax firms in Florida, this might mean there is much room to grow and expand. There are several types of financing loans in Florida that are available, but before we get to that, let’s look at some of the uses an accounting or tax firm might have for financing.

How accounting firms often use financing

• Updating technology: Accounting and tax firms handle sensitive client data. It’s essential that this data is secure and protected from hackers and other online threats. If you’re a sole proprietorship or small company, you can likely find affordable solutions to get you started. But as you scale, costs will increase. And if you scale fast, you may find the need for some financing to keep your software and hardware up to date, even if it’s just for a relatively small loan amount.
• Payroll and Staffing: In an ideal world, your cash flow would cover all of your payroll and staffing expenses. But in the real world, clients are sometimes late paying their invoices, your business can be hit by an unexpected expense, or you may see an opportunity to expand and need to hire new staff before their billable hours can cover their salaries. Business loans in Florida can help meet these expenses until your cash flow improves.
• Marketing: Statistically, there might be room to expand your accounting or tax business in Florida. But that doesn’t mean it’s going to be easy. You still need to get the word out to all of the potential customers who might need your services. If you’re in a competitive area, marketing can be expensive, but financing loans in Florida can help.
• Real Estate: If you want to own the property where your business is located, financing can be helpful. Most small businesses don’t have the cash to purchase a property outright, so a commercial real estate finance loan in Florida can help them purchase a new location when they need to move or expand.
• Equipment and Expansion: All equipment eventually wears out. Accounting and tax firms will have to replace things like chairs, desks, decorations, computers, printers, and phones. Purchasing these items one at a time would be unlikely to cause cash flow issues, but if you decide to upgrade your equipment all at once, small business financing can be a helpful solution.

Types of financing available to accounting and tax firms in Florida

Term Finance Loans

Term finance loans in Florida are what likely come to mind for most small business owners when they think about small business loans in Florida. With a term finance loan, you receive a set amount upfront from the lender, then make monthly payments on it until the loan is paid off with interest—just like you would with a home loan. The terms and interest rate will vary depending on the lender and factors like your credit score, and you may need to make a downpayment of up to twenty percent. Term loans can have a fixed rate or a flexible rate, meaning your interest rate can either be locked in for the life of the loan or can vary, meaning that the rate changes over time. Term loans are also fairly versatile in what you can use them for, ranging from purchasing other businesses, to covering emergency expenses, to improving cash flow.

SBA Loans

SBA loans are backed by the Small Business Administration (SBA), making them a lower risk for financial institutions, including credit unions and banks. Because of this, they typically have lower loan payments than traditional term finance loans, but the loan application process can be more time consuming. Like traditional term finance loans, they can be used for a variety of purposes.

Business Credit Cards and Debit Cards

Business credit cards are just like personal credit cards, but they are typically tied to your business credit history rather than your personal finances. If you have an established business, likely that you frequently receive “apply now” or “your business is preapproved” for business credit cards. While credit cards generally come with a high interest rate, having one on hand can be helpful for emergencies or even everyday purchases.

Business debit cards work just like personal debit cards, in that you can pay using money in your checking account (not your savings account), but you can’t go beyond that amount like you could with a credit card.

Personal Loans

If your accounting or tax business is new and you are having trouble finding lenders, a personal loan may be an option. Borrowers turn to personal loans when they don’t have the time in business or creditworthiness needed to get a business finance loan in Florida. It’s important to note that a personal loan is likely to be secured with personal assets, so if you default on the loan, you risk losing that asset. Just like if you were to take out a home equity line of credit (HELOC) on your house and use it for your business you risk losing your home, so too if you take out a personal finance loan and secure it with a personal asset, you risk losing that asset.

Equipment Loans

Equipment finance loans can be used to purchase equipment needed for your business. For example, if you need to purchase some of the equipment listed earlier—chairs, computers, desks, etc.—you could use an equipment loan to finance the purchase. With this type of financing loan in Florida, the equipment serves as the collateral, much like with a vehicle loan, so the rates tend to be lower than with other finance loan options.

Commercial Real Estate Loans

Commercial real estate loans can be used if you need to purchase or refinance commercial property. Because the property itself serves as collateral, these finance loans in Florida may be available for new businesses or businesses that have low credit scores.

How to Get Financing Loans in Florida

Whether your Florida accounting or tax firm can get financing will depend on a few factors, including your credit worthiness and your time in business. The way to get started with your business financing is to create a business plan that clearly outlines your needs and what you plan to do with the money. Then, gather your financial statements, make sure your business and personal credit is as high as possible, and start exploring the financing options that meet your needs. You can reach out to financial institutions for help if you’re not sure which option would be best. Then, simply begin the application process!

FAQs About Finance Loans in Florida

How do I find a small business tax accountant near me?

You can find a small business tax accountant by checking Google or Yelp, contacting your local chamber of commerce, or joining local business groups on social media and asking for recommendations.

Are there any good accounting firms for small businesses in Florida?

Florida has over 5,000 accounting and tax firms. To find out if a specific firm is the right fit for you, check their reviews on Google and Yelp, read their case studies and testimonials, and ask your peer network for referrals.

Is it easy for accountants to get a loan in Florida?

Whether or not you can get financing depends on several factors, including how long you’ve been in business, your creditworthiness, your financials, and the type of financing you seek. If you can’t get approval from a traditional bank or credit union, you may still be approved with an online or alternative lender.

How can financing help accounting and tax firms grow?

Financing can help you expand your services, upgrade technology, invest in marketing, or meet cash flow shortfalls during your slow season. All of these are key to short- and long-term growth.

What types of financing are available for accounting and tax companies in Florida?

Accounting and tax companies in Florida may be able to qualify for a wide variety of financing, including term finance loans, SBA finance loans, lines of credit, equipment financing, and commercial real estate finance loans.

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