May 05, 2025

How Accountants Can Embrace an Entrepreneurial Spirit

By Derrick Bonyuet, Ph.D., CFA, CFP, CPA

The advent of AI-driven technologies has resulted in numerous tools such as ChatGPT, ChatSonic and Bard, which threaten the existence of many professionals. Accountants are not immune to this threat, as many of their tasks can be automated.

As a result, accountants must be ready to reinvent themselves or even start their own business. This article provides a framework that many accountants can follow to assess their readiness to start their own venture.

Background

A study conducted by researchers from the University of Pennsylvania and OpenAI found accountants are among the professionals most susceptible to being impacted by the capabilities of generative artificial intelligence, as at least half of accounting tasks can be completed much faster with this technology. The study highlights the need to be prepared for potential economic disruption (Elondou, Manning, Mishkin & Rock, 2023).

Therefore, accountants must be prepared by assessing their options. In this regard, the World Economic Forum is a strong advocate of upskilling and reskilling (Zahidi, 2020). Upskilling refers to acquiring new skills to do the current job better. Reskilling involves learning new abilities to take on a different job role or function.

Another approach that accountants may want to consider is to start their own venture. Of course, becoming an entrepreneur is easier said than done. In fact, this may represent a challenge, as entering into an entrepreneurial venture is a risky task. Research has found that a high tolerance for risk is a key predictor for becoming an entrepreneur (Segal, Borgia & Schoenfield, 2005). Most accountants exhibit low risk tolerance, as they are trained to be conservative. However, their lack of risk tolerance is compensated by their skills and abilities that enable them to succeed in most business settings.

First, precisely because of accountants’ risk aversion, they keep a laser focus on scoping risk elements and other challenges that may threaten a business. In addition, because they understand how value is generated in an enterprise, they can identify what resources are required and how these resources should be allocated to yield an acceptable return.

Accountants can also determine the best funding sources and how capital structure can be optimized, then set projections under different scenarios to understand their potential profitability and cash flow. In the end, accountants don’t need to abide by that adage “fake it until you make it,” which is common among many entrepreneurs, as accountants truly understand business performance.

Do You Have What It Takes to Be an Entrepreneur?

Becoming an entrepreneur may have a different meaning for different people. For purposes of this article, we will define entrepreneurship as the launch of a small business venture. Therefore, this definition involves anybody who takes the risk to develop and implement a business.

In addition to a high tolerance for risk, research has found individuals must have a desire to become self-employed and the confidence to do so in order to succeed as entrepreneurs (Segal, Borgia & Schoenfield, 2005). Also note that being an entrepreneur does not mean one must have the ability to create something. Rather, it is the ability to see the economic potential of something.

According to Burch (1986), entrepreneurs exhibit most of the following personality traits:

  • A desire to achieve, which is reflected by a strong determination to overcome problems and start a successful venture.
  • Hard work, as launching a business may require working long hours.
  • Nurturing quality so entrepreneurs can drive the venture until it can stand alone.
  • Acceptance of responsibility, as entrepreneurs must be ready to accept responsibility for their ventures.
  • Reward orientation, as entrepreneurs expect to be rewarded for their hard work and this may come in different forms, including money, recognition and respect.
  • Optimism, which is the basis of an entrepreneur’s philosophy that anything is possible.
  • Orientation to excellence since entrepreneurs often strive to achieve something that is outstanding.
  • Organization, which enables entrepreneurs to bring together all components needed for a successful venture.
  • Profit orientation, which represents the benchmark to measure their achievement and performance.

Burch also discusses other elements that may describe whether an individual has an entrepreneurial capability, such as the desire to be independent, free and not subject to control by other people, the desire to seek opportunity, and the tendency to rely on intuition when making decisions rather than depending on a quantitative analysis.

So, How Do You Start Your Entrepreneurial Journey?

Before embarking into an entrepreneurial venture, it is important to conduct a personal evaluation. Such an assessment will allow future entrepreneurs to understand their personal goals, like what they enjoy doing with their time, what they are good at, and what hobbies or interests they may have that are marketable.

This personal evaluation should also ensure potential business ideas are compatible with personal goals. As ideas start flourishing, it is critical to convert these ideas into opportunities.

An approach that may help with this task is design thinking, which is centered on the customer so a deep understanding of what end users want is acquired. Design thinking is a process that starts with problem definition. Multiple options are then created, considered and further refined to finally come up with a winning solution. Business evaluation comes next, which will help assess the feasibility of the business idea. As a result, research must be conducted to gain a thorough understanding of the product or service, along with the expected market to be served.

The final outcome of this phase is the business plan, which is a document that defines the business and explains in detail how the venture will operate, who will manage the business, financial projections and required funding. The Small Business Administration (SBA) provides valuable resources to all small business owners on their site (www.sba.gov), including how to pick a location, how to incorporate, how to choose a business name, how to write a business plan, and funding sources.

About the Author: Derrick Bonyuet, Ph.D., CFA, CFP, CPA, is a clinical assistant professor of accounting in the McCombs School of Business at The University of Texas at Austin. He teaches Intermediate Accounting and Financial Statement Analysis. He is currently serving as the acting CFO of Hazel Aero, an early-stage startup working to design the new generation of search-and-rescue aircraft. Contact him at derrick.bonyuet@gmail.com.

 

Thanks to the Sponsors of Today's CPA Magazine

This content was made possible by the sponsors of this issue of Today's CPA Magazine:

Accounting Biz Brokers

Accounting Practice Sales

CPA Charge

Goodman Financial

Poe Group Advisors

SafeSend

 


  • TXCPA’s 2024-2025 Year in Review

    TXCPA addressed key challenges in the accounting profession through strategic initiatives focused on the CPA talent shortage, advocating for licensure flexibility, expanding student outreach, and enhancing member services. Key achievements included support for legislation introducing additional CPA pathways, strong participation in advocacy efforts and impressive engagement in CPE programs.
    View Article
  • CPE: The Significance of Codes of Conduct in Professional Organizations - Standards for Ethical Practice

    This article examines the ethical codes of four major professional organizations - AICPA, ACFE, CFA Institute, and IIA - highlighting their shared values of integrity, objectivity, confidentiality, and competence. While all emphasize ethical behavior and professional standards, each code is tailored to the unique responsibilities of its field.
    View Article
  • 89th Legislative Session Review: New House Leader, Rule Changes and a Productive Session for TXCPA

    The 89th session of the Texas Legislature began on January 14, 2025. TXCPA has been hard at work advocating its legislative agenda and has had a very productive session. Texas is one of the state leaders in addressing CPA pipeline issues.
    View Article
  • Special Report: The Digital Transformation of Accounting

    Digital transformation is reshaping accounting, making technology adoption essential for firms to stay competitive. Automation streamlines reporting, while document management systems improve organization and compliance. Embracing innovation allows firms to boost efficiency, deliver deeper client value and lead in a rapidly evolving profession.
    View Article
  • Key Considerations for Financial Statement Auditors Before Leveraging Artificial Intelligence in Their Audits

    There is a growing role for generative AI tools to be used in financial statement audits. The tools offer numerous advantages, including enhanced data analysis, continuous learning, predictive insights, audit automation, and cost savings. However, challenges remain, such as data privacy risks, bias in training data and the inability to verify source data. Learn more in this article.
    View Article
  • How Accountants Can Embrace an Entrepreneurial Spirit

    The use of AI-driven technologies has resulted in numerous tools that threaten the existence of many professionals. Accountants are not immune to the threat since many of their tasks can be automated. To stay relevant, accountants can upskill or start their own business. Despite low risk tolerance, their financial expertise makes them strong entrepreneurial candidates.
    View Article
  • Maximizing Audits: Key Elements for Efficient and Successful Financial Assessments

    Audits provide stakeholders with reliable financial insights, but the process can be daunting for companies. To prepare effectively, businesses should focus on strong internal controls, accurate transaction records and clear, compliant financial statements. Internal controls help prevent fraud and ensure accurate reporting, while well-organized documentation streamlines auditor reviews.
    View Article
  • Spotlight on the Accounting Profession: Jessica Rodriguez Reyes

    Jessica Rodriguez Reyes, an outstanding undergraduate in the BS/MS accounting program at the University of North Texas, shares her journey as a first-generation college student. With internship experiences in small and large firms, Jessica emphasizes the value of hands-on learning and her dedication to mentoring other students is making a noticeable impact.
    View Article
  • A Year of Progress and Impact

    As the 2024–2025 membership year ends, we reflect on a year of progress driven by the dedication of leadership, volunteers and, most importantly, our members. Together, we advanced initiatives, strengthened our community and expanded our reach. Looking forward, even greater opportunities lie ahead to build on this success.
    View Article
  • What’s Happening Around Texas - May-June 2025

    Members in Austin, Dallas and San Antonio participated in community service activities and professional networking events. Fort Worth hosted a successful masquerade ball to fund scholarships, while TXCPA South Plains introduced its new board. Southeast Texas engaged students at a career expo, Victoria hosted a student-CPA coffee meet-up, and Wichita Falls organized an educational event at Midwestern State University.
    View Article
  • Accounting Firms Continue to Innovate in Response to Rapidly Changing Market Conditions

    There is a growing trend of private equity investments in CPA firms amid declining CPA Exam participation, talent shortages and rising reliance on AI. While offering growth opportunities, the deals raise concerns about maintaining professional independence in a profit-driven model.
    View Article
  • Take Note

    In this edition of Take Note: Renew Your TXCPA Membership Today; TXCPA Passport is On-Demand CPE at Your Fingertips; Tips to Reduce Digital Overload; Get Published in Today’s CPA Magazine
    View Article
  • Classifieds

    The classified ad section features listings for practice owners looking to sell, professionals seeking firms to purchase and a variety of specialized services. Whether you're looking to expand, sell or explore niche opportunities, these classified ads can connect you to valuable business prospects and resources.
    View Article

CHAIR
Mohan Kuruvilla, Ph.D., CPA

PRESIDENT/CEO
Jodi Ann Ray, CAE, CCE, IOM

CHIEF OPERATING OFFICER
Melinda Bentley, CAE

EDITORIAL BOARD CHAIR
Jennifer Johnson, CPA

MANAGER, MARKETING AND COMMUNICATIONS
Peggy Foley
pfoley@tx.cpa

MANAGING EDITOR
DeLynn Deakins
ddeakins@tx.cpa

COLUMN EDITOR
Don Carpenter, MSAcc/CPA

DIGITAL MARKETING SPECIALIST
Wayne Hardin, CDMP, PCM®

CLASSIFIEDS
DeLynn Deakins

Texas Society of CPAs
14131 Midway Rd., Suite 850
Addison, TX 75001
972-687-8550
ddeakins@tx.cpa

 

Editorial Board
Derrick Bonyuet-Lee, CPA-Austin;
Aaron Borden, CPA-Dallas;
Don Carpenter, CPA-Central Texas;
Rhonda Fronk, CPA-Houston;
Aaron Harris, CPA-Dallas;
Baria Jaroudi, CPA-Houston;
Elle Kathryn Johnson, CPA-Houston;
Jennifer Johnson, CPA-Dallas;
Lucas LaChance, CPA-Dallas, CIA;
Nicholas Larson, CPA-Fort Worth;
Anne-Marie Lelkes, CPA-Corpus Christi;
Bryan Morgan, Jr, CPA-Austin;
Stephanie Morgan, CPA-East Texas;
Kamala Raghavan, CPA-Houston;
Amber Louise Rourke, CPA-Brazos Valley;
Shilpa Boggram Sathyamurthy, CPA-Houston, CA
Nikki Lee Shoemaker, CPA-East Texas, CGMA;
Natasha Winn, CPA-Houston.

CONTRIBUTORS
Melinda Bentley; Kenneth Besserman; Barry Kaplan; Holly McCauley; Shicoyia Morgan; Craig Nauta; Kari Owen; Dipesh Patel, CPA, CGMA; John Ross; Lani Shepherd; Patty Wyatt

 

Your TXCPA membership has not been renewed for 2025 -2026. Renew now.