Accountancy Practice Start Up
- Thread starter Paul10
- Start date
Ok Zeno I get your point....but I have experience with the shoe box full of receipts as well and if Im honest I enjoy it far more than reviewing a year end stock revaluation from standard cost
Lets see how things go!!
Can't imagine PWC have too many jobs like that these days.
If you will not be persuaded otherwise, will you at least consider going on some courses - tax, VAT, Corp tax, money laundering etc to get you up to date?
Some of them can be more geared to the smaller practioners.
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At PwC we are faced with new issues everyday. I work on several clients throughout the year, and everyone has different issues to deal with, and I am always learning something knew.
However we get to learn how to research and address such new issues, which I am sure Paul will be very capable of doing.
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How about a rousing chorus of the company song then?
I am not knocking your training with PwC, just pointing out that it is a very different job than working in small practice. I would not presume that I could do your job without a period of adjusment during which I would be glad to be under supervision so why do you presume you can do mine?
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lol I thought it might come across that way.
The reason I think someone with enough experience from one of the big four firms can do it is because of the variety of work we get to do, the involvement with clients and the amount of advice we provide to our clients. I know it is different, but not extremely different, at the end of the day the team goes through most of the clients work from invoices/bank statements all the way to the signed stats. admitadely we dont do account prep, but if you dont know how to do that after a few years of experience then you must have been playing around.
In terms of the Tax advice, I can think of a few solutions:
1) Outsource the work
2) Find a tax partner to join
3) Do exams/qualification
4) Read on the internet, get books etc...
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Hi Paul,
I have been following this thread with much interest and thought i'd share my thoughts..
I have a similar background to you - started out in practice (Deloitte) about 13 years ago but since left (after about 3 years) and have been working in Industry (Telecomms) and Investment Banking ever since. BTW, also a Prifysgoll Caerdyydd alumni!
I'd been toying around with the idea of working for myself for a few years but have only just summed up the courage to go it alone in the last 3 months. Over the last year, i attended several CPD courses geared towards accounting and tax for small businesses as i worked in practice so long ago and things have changed ever since. I also was aware that the clients i will be dealing with would be different from the clients i dealt with at Deloitte in size and complexity. I also attended the free workshops hosted by HMRC which were quite good and have spent a lot of time on this forum as there are lots of very knowledgeable people here.
These courses not only acted as a refresher, but gave me the confidence i needed to go it alone. I also have two accountants in practice who act as my mentor so should i come across an unfamiliar situation, i can always run it by them as well as an ex-HMRC staff who i can call upon if i am presented with a tax query that is over my head. I have also registered with CIOT and will be taking the CTA exams in May next year. Those were the easy bits. The difficult bit is actually getting the clients. Once you get to the critical mass, the referral engine begins to churn out results but until then, getting those first few clients is an uphill task and i continue to plug away.
I think you are doing the right thing. Go on some of those courses that Zeno has mentioned - they certainly helped boost my confidence and take it from there.
Good Luck!
I have been following this thread with much interest and thought i'd share my thoughts..
I have a similar background to you - started out in practice (Deloitte) about 13 years ago but since left (after about 3 years) and have been working in Industry (Telecomms) and Investment Banking ever since. BTW, also a Prifysgoll Caerdyydd alumni!
I'd been toying around with the idea of working for myself for a few years but have only just summed up the courage to go it alone in the last 3 months. Over the last year, i attended several CPD courses geared towards accounting and tax for small businesses as i worked in practice so long ago and things have changed ever since. I also was aware that the clients i will be dealing with would be different from the clients i dealt with at Deloitte in size and complexity. I also attended the free workshops hosted by HMRC which were quite good and have spent a lot of time on this forum as there are lots of very knowledgeable people here.
These courses not only acted as a refresher, but gave me the confidence i needed to go it alone. I also have two accountants in practice who act as my mentor so should i come across an unfamiliar situation, i can always run it by them as well as an ex-HMRC staff who i can call upon if i am presented with a tax query that is over my head. I have also registered with CIOT and will be taking the CTA exams in May next year. Those were the easy bits. The difficult bit is actually getting the clients. Once you get to the critical mass, the referral engine begins to churn out results but until then, getting those first few clients is an uphill task and i continue to plug away.
I think you are doing the right thing. Go on some of those courses that Zeno has mentioned - they certainly helped boost my confidence and take it from there.
Good Luck!
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Paul10
Can I offer some encouragement here? I was showing our system to an accountant last week who had been in the same position as you.
He started out slowly, working from his garage, and gradually built it up over a few years. He's now got a large enought client base, and is doing very well indeed.
I think as long as you are sensible, and lots of the advice on here would I'm sure be agreed by my accountant contact, the potential is there for you.
Can I offer some encouragement here? I was showing our system to an accountant last week who had been in the same position as you.
He started out slowly, working from his garage, and gradually built it up over a few years. He's now got a large enought client base, and is doing very well indeed.
I think as long as you are sensible, and lots of the advice on here would I'm sure be agreed by my accountant contact, the potential is there for you.
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berniceq123
Hi
I've been reading this thread with extreme interest, I am in the same position as Paul and thinking about starting business. Long story short, I'm newly qualified ACA and will have the 2 years PQE in a few months, I initially qualified as an accounting technician, no degree. I started in a small practice when I was 17, I'm now 26, turning over almost £200k between 3 staff. 3 years ago I moved to a larger practice with over 20 staff and went into the tax dept as my knowledge and experience was extremely limited in this regard. Anyway, I've realised that although I love the people I work with, I hate working for someone else and want to be my own boss. I think I have enough experience to start up on my own, especially for the type of services I intend to begin with, however how do I take the plunge and get the clients? I'm not a natural sales person so the thought of networking fills me with dread but my clients have described me as professional, friendly and approachable. Also my present employer is quite well known in the local scene so it would not like to tout for business until my commitments there are finished? I've got a mortgage so need to keep my job, for now. I've looked into the other pracitcal issues re: practising certificates and am presently saving every penny I can. Any help would be greatly appreciated.
I've been reading this thread with extreme interest, I am in the same position as Paul and thinking about starting business. Long story short, I'm newly qualified ACA and will have the 2 years PQE in a few months, I initially qualified as an accounting technician, no degree. I started in a small practice when I was 17, I'm now 26, turning over almost £200k between 3 staff. 3 years ago I moved to a larger practice with over 20 staff and went into the tax dept as my knowledge and experience was extremely limited in this regard. Anyway, I've realised that although I love the people I work with, I hate working for someone else and want to be my own boss. I think I have enough experience to start up on my own, especially for the type of services I intend to begin with, however how do I take the plunge and get the clients? I'm not a natural sales person so the thought of networking fills me with dread but my clients have described me as professional, friendly and approachable. Also my present employer is quite well known in the local scene so it would not like to tout for business until my commitments there are finished? I've got a mortgage so need to keep my job, for now. I've looked into the other pracitcal issues re: practising certificates and am presently saving every penny I can. Any help would be greatly appreciated.
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Why can't Paul's ACCA friend with insufficient PQE complete his PQE with Paul, whereupon he could be promoted to full partner status?
Separate subject, for all those thinking of taking the plunge, have a dry run by setting up a stall at a car boot sale and testing your commercial acumen. Some have it in spades, whilst others struggle. Having the technical knowledge, not to mention quals, is a prerequisite that is little more than a table-stake. Drive and acumen are the factors that really matter.
Doesn't matter a jot how good a job you do. What matters is whether your client's perception is that you are doing a good job.
Separate subject, for all those thinking of taking the plunge, have a dry run by setting up a stall at a car boot sale and testing your commercial acumen. Some have it in spades, whilst others struggle. Having the technical knowledge, not to mention quals, is a prerequisite that is little more than a table-stake. Drive and acumen are the factors that really matter.
Doesn't matter a jot how good a job you do. What matters is whether your client's perception is that you are doing a good job.
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C
cjm28
I've been reading this thread with great interest as I am considering moving into general practice from a big 4 firm in the coming years. I have one more exam to sit at ICAS so have plenty time to do the relevant training for smaller clients once that is out of the way.
What would you say a successful small practice (2 partners, probably no employees) could earn in terms of remuneration? £50k per partner? Realistically, would more be possible?
I'm keen to get an idea of what is realistic once up and running and compare it to where I would be if I take a different route. Business develoment and client skills are sound however we recognise the need to train in the relevant technical areas for the new client market.
Also, we view this as being one of several business ventures in a long term plan. In terms of exit strategy, is it realistic that another firm may buy our practice, assuming it is doing well, if we both wanted to leave it - ie. is there any value in buying a practice without it's partners? There is surely a great risk all the clients would just go elsewhere?
Thanks to everyone that has contributed so far, and good luck to those making the plunge!
What would you say a successful small practice (2 partners, probably no employees) could earn in terms of remuneration? £50k per partner? Realistically, would more be possible?
I'm keen to get an idea of what is realistic once up and running and compare it to where I would be if I take a different route. Business develoment and client skills are sound however we recognise the need to train in the relevant technical areas for the new client market.
Also, we view this as being one of several business ventures in a long term plan. In terms of exit strategy, is it realistic that another firm may buy our practice, assuming it is doing well, if we both wanted to leave it - ie. is there any value in buying a practice without it's partners? There is surely a great risk all the clients would just go elsewhere?
Thanks to everyone that has contributed so far, and good luck to those making the plunge!
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mnp
This is very interesting for me because I am at a similar stage as Paul. I have allways done accounts for other people mostly charities, but always maintained a full time job. I am now coming to the end of a long contract, and without anything in the pipeline, I am considering self employment.
I have got two problems I need help with
1. I have never worked for a practice before, and I really need to put the right systems in place. Other than a mentor is there a software that can give me a guideline.
2. I need some guidance on fee structures, now that this is no longer a hobby. My fees to date have not been structured.
I have got two problems I need help with
1. I have never worked for a practice before, and I really need to put the right systems in place. Other than a mentor is there a software that can give me a guideline.
2. I need some guidance on fee structures, now that this is no longer a hobby. My fees to date have not been structured.
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I started my practice a month ago, 4 clients so far. Although I qualified as a Chartered Accountant in 91, I have got my practising certificate via ICPA for the following reasons:
1. ICAEW wanted £1,500 fees including £150 from 12 years ago. No flexibility, no extras thrown in.
2. ICPA is £600 for the year, but for that you get free PII cover, plus a great tax database library which I am steadily working through. I know most of it, everything I don't know which seems relevant to my client base I am making notes of, plus doing my own notes (from a variety of sources) on key issues like "Should I go Limited" for my website.
3. Apart from the database, they also have Mercia videos online and I've been going through these. I am in the Lake District so a load of training courses in Manchester is no good to me if clients are wanting me.
My Pricing Model is as follows:
I noted down all the features I am offering such as Self Assessment, Corporation Tax return, accounting and then made a note of the key variables - turnover, number of transactions per year, complexity (for example, farming is more complex than other businesses due to stock that appears from within other stock etc!)
So I then had a pricing model which I wanted to come in 15% to 20% lower than the average competition locally. The next step was to market research every local business owner I knew personally. From this process I gained a client but also got great information on pricing, which I used to refine my pricing model.
Hope this helps.
1. ICAEW wanted £1,500 fees including £150 from 12 years ago. No flexibility, no extras thrown in.
2. ICPA is £600 for the year, but for that you get free PII cover, plus a great tax database library which I am steadily working through. I know most of it, everything I don't know which seems relevant to my client base I am making notes of, plus doing my own notes (from a variety of sources) on key issues like "Should I go Limited" for my website.
3. Apart from the database, they also have Mercia videos online and I've been going through these. I am in the Lake District so a load of training courses in Manchester is no good to me if clients are wanting me.
My Pricing Model is as follows:
I noted down all the features I am offering such as Self Assessment, Corporation Tax return, accounting and then made a note of the key variables - turnover, number of transactions per year, complexity (for example, farming is more complex than other businesses due to stock that appears from within other stock etc!)
So I then had a pricing model which I wanted to come in 15% to 20% lower than the average competition locally. The next step was to market research every local business owner I knew personally. From this process I gained a client but also got great information on pricing, which I used to refine my pricing model.
Hope this helps.
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You need to spend money on marketing to start your business. People don't just come to you. It costs money and is time consuming. The first year you will do well to make a profit. However you are building a business with a saleable value
You need to be able to meet people and convince them to use you. It's a bit scary at first but you get better at it with practice.
When word of mouth kicks in it becomes a whole lot easier. You have extra sales with little increase in overheads and marketing costs fall
You need to be able to meet people and convince them to use you. It's a bit scary at first but you get better at it with practice.
When word of mouth kicks in it becomes a whole lot easier. You have extra sales with little increase in overheads and marketing costs fall
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I have been following this thread with keen interest as I am considering starting a practice firm.
I have over 10 years of experience in the financial services doing other stuff besides accounting. However for the past 2 months, I worked for a friend’s practice firm and that inspired me to go into accounting practice.
I am a student member of ACCA with 2 papers to complete. I know I will struggle with the 2 years PQE in order to get a practice certificate. But from what I have read here, can I still start my practice firm and continue with my papers?
Also, am keeping my day job until I churn enough client base. If there’s anyone here who can be my mentor, I will be most grateful. I have tonnes of questions. Thanks
I have over 10 years of experience in the financial services doing other stuff besides accounting. However for the past 2 months, I worked for a friend’s practice firm and that inspired me to go into accounting practice.
I am a student member of ACCA with 2 papers to complete. I know I will struggle with the 2 years PQE in order to get a practice certificate. But from what I have read here, can I still start my practice firm and continue with my papers?
Also, am keeping my day job until I churn enough client base. If there’s anyone here who can be my mentor, I will be most grateful. I have tonnes of questions. Thanks
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It won't be illegal to run an accountancy practice while you are studying for the ACCA. It will be against the ACCA rules though to do anything other than basic bookkeeping. You won't be allowed to do VAT returns, final accounts and tax returns.
If the ACCA find out you have been working for yourself you will be thrown out and the effort you have put in to passing the exams to date will be wasted.
If the ACCA find out you have been working for yourself you will be thrown out and the effort you have put in to passing the exams to date will be wasted.
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You need to look at this document. As @Scalloway has said, you will be subject to disciplinary proceedings should you engage in public practice without a practising certificate were ACCA to find out. 
If you decide to start the practice and you believe that you have enough practical experience, your only option is to resign as a student member of ACCA
If you decide to start the practice and you believe that you have enough practical experience, your only option is to resign as a student member of ACCA
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Hello, it’s me again. I have decided to start a practice business offering pro bono services.
I’ve incorporated my first business client.
I obviously need to register with HMRC’s agent online filling services which I have but I also need to apply in writing to be able file for corporations taxes amongst other things. Do you have experience making this request please?
Can anyone help me with a template?
I’ve incorporated my first business client.
I obviously need to register with HMRC’s agent online filling services which I have but I also need to apply in writing to be able file for corporations taxes amongst other things. Do you have experience making this request please?
Can anyone help me with a template?
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You probably be lacking the tax knowledge to support local small buisnesses.
I spent 12 years in practice then 13 years in FD roles before deciding to start my own practice 3 years ago. To get my tax knowledge back up to speed i did the ATT course in the final year of employment to get me match fit to start on my own.
The first 2 years are very tough as I left a Director level job to do it and took a hit on my earnings so ended up doing a lot of low value work to keep busy which I had to ditch and almost start again after 18 months.
Also don't under estimate the amount of capital you need to get going. People will say you can get a laptop and some software for a £1000 and away you go, which is true to a point but you will not get much traction very quickly.
You need website, marketing social media etc all set up and running, you can work from home but I found better clients only took me seriously when I got an office. Really you need £15k to £20k working capital to get set up and running if you are looking to sign up 50/60 in your first year, plus you will also need to pay your bills for maybe 6 months before you can rely on anything coming from the business.
I spent 12 years in practice then 13 years in FD roles before deciding to start my own practice 3 years ago. To get my tax knowledge back up to speed i did the ATT course in the final year of employment to get me match fit to start on my own.
The first 2 years are very tough as I left a Director level job to do it and took a hit on my earnings so ended up doing a lot of low value work to keep busy which I had to ditch and almost start again after 18 months.
Also don't under estimate the amount of capital you need to get going. People will say you can get a laptop and some software for a £1000 and away you go, which is true to a point but you will not get much traction very quickly.
You need website, marketing social media etc all set up and running, you can work from home but I found better clients only took me seriously when I got an office. Really you need £15k to £20k working capital to get set up and running if you are looking to sign up 50/60 in your first year, plus you will also need to pay your bills for maybe 6 months before you can rely on anything coming from the business.
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A
AccountOnThis
Hi Paul
I was in the same situation as yourself, but from the software side of things. I worked for some very large companies with multi-million dollar project budgets.
I decided to strike out on my own by building a cloud accounting app similar to Xero.
I am currently looking for an accountant to help me launch a complete online accounting service, using the software I have written. I don't think I can add a URL on here - but go to accountonthis.com to see what it is.
If you're serious about starting your own company, perhaps we can talk?
I was in the same situation as yourself, but from the software side of things. I worked for some very large companies with multi-million dollar project budgets.
I decided to strike out on my own by building a cloud accounting app similar to Xero.
I am currently looking for an accountant to help me launch a complete online accounting service, using the software I have written. I don't think I can add a URL on here - but go to accountonthis.com to see what it is.
If you're serious about starting your own company, perhaps we can talk?
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