Starting Practice

[K2 Accountancy]

So here goes, im sure that you have been through this topic many times but i have decided to attempt to start up my own small practice!!

Have had my headed paper approved by the ethics committee, registered as an agent, have received approval in regards to Practicing Certificate and PII plus working through the list of Money Laundering regulations, Data Protection, etc.

Preliminary target market include local tradesmen for self assessment, taxi firms, hairdressers, garages, local businesses (smaller ones) and am confident that i will be able to provide an added value service to attract a client base that will lead to a successful business.

Part of this note i guess apart from introductions is that im keen to take views on the need to acquire the knowledge and expertise of a mentor that can aid and assist me in any queries, challenges that i have. When you guys started did you do the same thing and how does this kind of relationship work?

Any tips and advice would also be more than welcome, its a step i take with some trepidation but at the same time a great deal of excitement so would greatly appreciate information on the pitfalls and key to successes that many of you routine posters have experienced over the years.

Anyways, thats it from me, i look forward to contributing to future posts and getting into discussions on the forum

 

[MyAccountantOnline]

Have a look on AccountingWeb - you'll find lots of help there.

 

[Philip Hoyle]

It depends on what skills you have and where you are lacking. Are you fully up to speed on accounts/tax matters or do you want mentoring on technical matters? Or are you weak in marketing? Or is your weakness in administration/management? Or people skills?

Many/most new business start-ups don't have a mentor as such. I didn't. I was technically fine due to nearly 20 years working in practice and industry. My marketing was weak, but I learned that myself by trial and error.

Are you looking for freebie advice or are you wanting paid consultancy? As Nicola has said, there's lots of advice over on Accountingweb, and I'm sure you could also get advice on here and other forums. Plenty of consultants willing to take your money if you want formal/professional advice.

Not sure whether you'd find anyone who'd actually give you one-to-one mentoring for nothing. Though you may be able to collaborate with another accountant if you can do work for eachother, i.e. if they could give you basic book-keeping and accounts prep and in return you passed them any complicated/specialist clients of yours to do the higher level work.

But for any mentoring/consultancy to work, you really need to have a proper plan and properly evaluate your own strengths and weaknesses, otherwise you could waste a lot of time and money and not make much progress.

 

[K2 Accountancy]

Thanks both,

MyAccountantOnline, i have now also posted a similar discussion in AW as i am already a member, find the site extremely useful for technical matters. Posted in Start up section so not sure how much views it will get.

Phillip, interesting thoughts and to be honest my hope was that i would be able to bounce ideas of someone who has been there and done that, rather than anything specific so more freebie advice than paid consultancy. Obviously i understand that i would need to offer something in return (i dont know what and i guess that was part of the question) unless there is someone out there that wants to help a young and ambitious individual

I should probably have mentioned my background. Studied for an accountancy degree and went from there into PwC, working in a department that provided business advisory services to the smaller owner managed businesses as well as the routine audit for SME's. I mention this because it really was the case that sometimes we would be required to complete a set of accounts from the manual ledgers not just the usual audit that you would expect with the Big 4 and also got involved in tax.

From there i decided to move into industry (5 years ago) and am currently in a Finance Controller role but have always had a desire to commence my own practice for a number of reasons.

Without going on, marketing and 'winning clients' would be my weaker areas but as you have stated i feel that this would develop over time and i will learn from my mistakes, thats all part of the journey.

On a slightly different note, i have been thinking about some tax exams but do not know if this would be worthwhile given the client base that i originally intend to target?

 

[elaine@cheapaccounting]

How much accounts prep to CT600 have you done?

You are not alone in "marketing and 'winning clients' - weaker areas". So many newbies share that.

What is your marketing plan?

 

[K2 Accountancy]

Hi Elaine,

I would say that accounts prep is my strongest area as have really done a lot over the years, from invoices to stats and from TB to stats, not just for companies but also individuals. This is the area that i also enjoy the most and miss in my current role.

CT600 experience, although i touched on in PWC has been achieved more in industry, especially in current role. I know that there are areas in this respect that i will need to develop and this is something that i am looking to do. On the otherhand i know that there are packages out there that are also extremely useful in this respect.

Marketing plan is limited at the moment, one of the reasons i am starting up is that i have received so many requests over the years i really feel there is an opportunity to provide an exceptional service. i am willing to let the practice develop over the course of time so referrels would be my main source (by providing a good service) but have also had business cards printed, will set up a website and have considered putting flyers up in high footfall locations. Wil be staying away from telemarketing or direct sales.

Not sure if you have any thoughts or advice on the area?

 

[elaine@cheapaccounting]

I would suggest getting more up to speed with CT600s and final accounts prep and filing (including disclosures) asap else you will struggle to offer limited company accounting IMO. Sounds like you are able to offer bookkeeping to TB at the mo.

I also think your marketing needs some work - but I'm not going to be giving you suggestions as I keep those for myself and my team.

Good luck

 

[K2 Accountancy]

Thanks Elaine, but find those comments rather strange although entitled to opinion. The crux of what i have done is taken source documents (be that invoices or TB) to the financial statement stage and obviously that includes notes and disclosures, so to say that i can just offer bookkeeping based on what you know i find slightly offputting.

In terms of marketing, im in no rush to grow the business, will give me time to close all of the gaps in my knowledge. From experience referrals are the way to build a solid and secure customer base on which to make the next decision.

Im sure that i will make plenty of mistakes along the way but thats the fun of the whole process

Thank You

 

[elaine@cheapaccounting]

Thanks Elaine, but find those comments rather strange although entitled to opinion.

I must have read your post wrong when you said "CT600 experience, ... i touched on in PWC". I thought you said that you were at PWC five year ago.

Oh well never mind ... but just to say I do disagree with

Im sure that i will make plenty of mistakes along the way but thats the fun of the whole process

Not if the mistakes are at the client expense, cost and exposure.

That is why I suggested getting up to speed before you offer more than bookkeeping.

As I said - good luck with it all

 

[K2 Accountancy]

No worries, missed the bit that said that this "has been achieved more in industry, especially in current role" but hey thats not a problem.

The mistakes i mention are totally in relation to the way the business is going to be set up and run, obviously this would not in any way compromise the financial affairs of a client.

Looks like going to have to watch my p's and q's around here!

 

[elaine@cheapaccounting]

With respect doing a CT600 in industry (once a year) is VERY different from practice.

Oh and if you think we are bad on here good luck with Accounting Web

 

[K2 Accountancy]

Haha, thanks for that, will bear it in mind when going on there.

I never said that i only did it for one company (in fact we have a few too many if anything) but look i understand where you are coming from and i agree that i will need to have a sound understanding before offering certain services.

We all start off somewhere though

 

[elaine@cheapaccounting]

We all start off somewhere though

Yes very true but please do remember that you were the one who asked for advice

 

[DFL]

Not a very walm welcome. Is this place turning into Aweb?

Kellie I have responded to your post on aweb, hopefully the blog will give you something to think about.

When starting a business, any business, you will always get people putting obstacles in the way, 99 times out of 100 they are obstacles that can be easily overcome.

Jason

 

[elaine@cheapaccounting]

Hi Jason - how are you. Not seen you around here for a bit. Hope you are staying around to offer more advice and help.

I always look forward to your opinions

 

[MyAccountantOnline]

Is this place turning into Aweb?

No we're much nicer here

I think AW has calmed a little recently...thankfully.

I am sure K2 will get a lot from AW.

 

[MyAccountantOnline]

... i have been thinking about some tax exams but do not know if this would be worthwhile given the client base that i originally intend to target?

I think you'll find tax exams eg ATT one of the most relevant qualifications to working in/running a small practice, and do think you'll find it of huge benefit, but whether you can honestly commit to both at the same time ie studying and setting up a new practice is another question. I'm not sure I could.

Best of luck

 

[elaine@cheapaccounting]

I think AW has calmed a little recently...thankfully.

.

That's good feedback - I might start to venture back over there then.

 

[K2 Accountancy]

Thanks DFL, looks like you have been missed around here . I have replied to your message on AW and appreciate your comments on both forums, always nice to have some positive support especially when taking such a big step.

Also thanks Nicola, it definitely seems as if ATT exams would be beneficial to me. Do you think it would be a problem if I was to concentrate on setting up the practice and then look at the exams at a later date. Obviously slightly backwards but im really keen on going for this in the here and now but without compromising the service that i offer and provide.

 

[MyAccountantOnline]

Also thanks Nicola, it definitely seems as if ATT exams would be beneficial to me. Do you think it would be a problem if I was to concentrate on setting up the practice and then look at the exams at a later date. Obviously slightly backwards but im really keen on going for this in the here and now but without compromising the service that i offer and provide.

My honest advice is to get the qualifications and experience first.

When you set up a practice it takes a huge amount of time and commitment and once you've set it up you'll probably find you just wont have the time to fit in, or the desire to do the studies.

When I think back to my first practice it was the sheer amount of time that it took which I underestimated the most, and I had a much easier start that you having worked in and gained many years practical experience of just the type of practice I set up initially.

 

[elaine@cheapaccounting]

As an interim step why not have a look at 'revision course' for those entering Practice from e.g. 2020 group plus many others.

Or maybe find a mentor. Your professional body may be able to offer support here.

I am sorry if you felt my comments were negative. That was not the intention but the written word, without TOV, can be read in many different ways can’t it.

Having put over 20 accountants through the Practice start up process I know from my experience that it is not for the faint hearted. Starting on your own can be a lonely place – I really do hope it works out for you and you find a way to read my comments as constructive advice aimed at protecting you and your clients in this litigious world.

Once again good luck.

 

[elaine@cheapaccounting]

Not a very walm welcome. Is this place turning into Aweb?

I think AW has calmed a little recently...thankfully.

Nicola - this is your fault

Just had a quick trip to Aweb given comments above and on the very post referred to found poor Jenny from Aweb saying

"Please stick to the original question. We don't want this thread to turn nasty and then have to close it.
Thanks in advance.
Jenny"


ROFLMAO - what were you saying Nicola

 

[MyAccountantOnline]

Nicola - this is your fault

Just had a quick trip to Aweb given comments above and on the very post referred to found poor Jenny from Aweb saying

"Please stick to the original question. We don't want this thread to turn nasty and then have to close it.
Thanks in advance.
Jenny"


ROFLMAO - what were you saying Nicola

Oh dear:redface:

I honestly thought they'd all chilled a little following the departure of one very out spoken contributor.

What a bunch of miserable devils....see this is what running an accountancy practice can do to you K2 take it as a warning

 

[elaine@cheapaccounting]

Oh dear:redface:

I honestly thought they'd all chilled a little following the departure of one very out spoken contributor.

What a bunch of miserable devils....see this is what running an accountancy practice can do to you K2 take it as a warning

That is my entertainment for today

 

[MyAccountantOnline]

That is my entertainment for today

...guess where I'm off to in a mo...

 

[elaine@cheapaccounting]

...guess where I'm off to in a mo...

I guess we both need to get out more

 

[MyAccountantOnline]

I guess we both need to get out more

In a word ''yes''

 

[K2 Accountancy]

I will certainly look into the revision course option and hopefully this together with my current knowledge will allow me to offer the services that i propose to potential clients, thank you.

I have seen that there is a thread in relation to the structure of the practice but out of experience did you guys set up as a self employed sole trader or as a company. Obviously individual circumstances will dictate the best option but wanted to get a feel for the general preferred options

 

[elaine@cheapaccounting]

Limited company for me and all of our franchisees are the same - for the exact reasons I would suggest this to most of our clients (not just the tax advantage but the limited liability - protected by PII of course).

Is there a members in Practice area on ACCA. Nicola will know but if not try the MiP on AAT (don't have to be a member) but it gives some good advice there [better than Aweb IMO]

 

[Maslins]

I have seen that there is a thread in relation to the structure of the practice but out of experience did you guys set up as a self employed sole trader or as a company. Obviously individual circumstances will dictate the best option but wanted to get a feel for the general preferred options

For me, started as sole trader. At the very beginning, it was around a full time job, so had benefit of offsetting early loss (based on marketing costs, mainly website & networking) against salary. 18 months ago (2-3 years after starting) formed LLP.

Not saying this is necessarily what'll be best for you, but (as with any new business) if you're not 100% confident it'll be a success early on, sole trader can often be better to test the waters.

Like you suggested at the beginning, getting clients will likely be the hardest thing. Once you've got a reasonable base, they'll all recommend their mates to you...but getting those first few ain't easy! Good luck!

 

[K2 Accountancy]

To be honest i am siding with the sole trader initially, i will need to run the figures based on forecast but my gut feel is this route.

As you say Elaine, the limited liability that incorporation would bring is the main thing that has been concerning me with regards to sole trader but wouldnt it be the case that for the initial level and type of business that i can expect in the early months that my PII would cover me in this respect?

In terms of the business then i am slowly ticking things off the list, i have two self employed tradesmen that are ready to give me their bag full of receipts for last years tax return and currently pulling together my templates to make repeat business far easier

 

[elaine@cheapaccounting]

A tip - check out the free HMRC courses on CIS if you are working on trades.

 

[K2 Accountancy]

Thanks again Elaine.

Are these courses more for clients that are also contractors rather than purely subcontractors. These two particular tradesmen subcontract for one company but do not sub that work out themselves, basically they are labourers as and when required.

Will certainly have a good look as this is an area that i will initially target

 

[InPrintImaging]

I personally would be cautious about sourcing techical advice from the internet, as a lot of it is wrong. I have tried in the past and had 5 different answers to the same question (all of which sounding dodgy), before finally ringing up an old work collegue from GT and finding out that none of them were correct at all (by a considerable way), so my advice would be, be careful when researching techincal issues.

CCH do a small practitioner pack. It is pricy, but authoritative.

 

[K2 Accountancy]

I take your point IPI but surely the HMRC website would be as good a place as any for technical advice regarding such issues? Im waiting for the uproar after this comment mind

In terms of the general questions then i feel as if these forums are ideal and i certainly have benfitted from reading certain threads in the past. Certainly getting specific technical advice would be somewhat risky though and more than likely wouldn't be given anyway

 

[David Griffiths]

but surely the HMRC website would be as good a place as any for technical advice regarding such issues?

It's OK, although there are plenty of contentious areas where the site, as might be expected, only gives HMRC's view of the matter. There are also some instances of it being wrong.

The problem with this is that you can only ask questions where you know that you need help. You can't ask questions on those areas where you have perhaps little experience without fully understanding the whole topic. That means that don't know that you need to ask more questions.

It also won't explain ways to get round problems.

 

[DFL]

Hi Jason - how are you. Not seen you around here for a bit. Hope you are staying around to offer more advice and help.

I always look forward to your opinions

Hi Elaine - I am good thanks, hows you? I haven't been on here for a while, not sure whether I told you but one of our DFL clients went to school with you, small world eh? Now be nice to me

 

[elaine@cheapaccounting]

Hi Elaine - I am good thanks, hows you? I haven't been on here for a while, not sure whether I told you but one of our DFL clients went to school with you, small world eh? Now be nice to me

All good here thanks Jason. Hope you'll stay around a bit. V intrigued about who went to my school - must be female as it was a girls school. Do tell

At least it proves that I did go to school

 

[DFL]

Her name is Sue, will PM you her maiden name when I get it as I only know here by her married name - she showed me a pic of you at school together

She saw your name on my linked in profile.

 

[elaine@cheapaccounting]

Sue - well that narrows it down

Would love to see the pic - must be in black and white as it would be over 30 years ago