making the jump

making the jump

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I currently have a very well paid and senior role in a large blue chip company (package of around £75k). However, I've grown more and more tired of the big company work and would love to work with SME's offering management accounting and basic compliance services. I'm CIMA qualified with about 10 years PQE. I've taken on a few clients in my spare time (after registering as a mip with CIMA) and would love to make this a full time career. However, I do have a few worries that I was hoping this forum could help me with:

1) Is there a sufficient client demand to at least get somewhere near replacing my current package
2) I ahve spoken to a former practioner who told me not to do it as practice nowadays is full of red tape and regulation and isn't very rewarding. Does this tie up with the experiences of the members on here
3) Whats the best way of getting started and really going for it (i.e. attracting clients etc)

Would anyone who's made the jump ever look back and regret it.

I guess in a nutshell I'm looking for a confidence booster that the work is out there and that it's a rewarding career choice. i'm aware that I'll have to brush up on my tax skills as they haven't been used for a few years, but I'm prepared to take on some training and maybe even study for ATT

thanks in advance for any comments
S

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By Richardrussell
02nd Aug 2006 09:17

Sounds familiar
Your circumstances are almost identical to those facing me a couple of years ago. I made the jump and don't regret it one bit - my salary/company profit is not up to the level of salary whilst in work, but the work is so much more enjoyable, you are appreciated by your clients, and you can control your hours more (let's face it, if you're working for yourself, you don't mind working evenings).

As far as advice is concerned:

- Do ATT or CIOT, it is essential, you will quickly learn how every client expects you to have a good knowledge of tax, especially in respect of OMB.

- Do a business plan! It sounds daft telling you that, but it is not a question of 2,000 hours p/a @ £50 = £100,000, that'll do me!

- Following on from the above, decide what kind of work you will provide. I do general accounting and also have several management accounts (1 day p/m each), if you're on your own, the management accounts can be quite disruptive to your other clients.

- Be realistic, it will take time to build your portfolio together, do you have savings to fall back on? Does your personal expenditure need reigning in? Do you have family that will support you?

- Let everyone know what you're doing. All your friends and family who are s/e are potential clients! NB, some of these may be uneasy about you knowing their financial situation/shortcomings!

- Search on AccWeb, there are regular questions like yours and some sound advice.

- Whilst things are slow client wise, get everything else sorted, you will have little time later on to deal with, say, engagement letters.

Regarding your last paragraph, depending on the type of work you want, the work is out there. Remember, you may have the skills to do the work, but your prospective clients won't know that, and you may be perceived as a risk if you're on your own. It's the old "why should I employ you" scenario.

Good luck.


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By Helen Crowley
02nd Aug 2006 12:05

Subcontract?
You could subcontract the tax work at least in the short term to someone else who already has the ATT qualification and is in a similar position to yourself. They wouldn't necessarily need to be in the same geographical area if you make use of technology (scanning documents and using E-mail etc)You may wish to add your e-mail address to your post if you are interested in exploring that possibility.

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By User deleted
03rd Aug 2006 23:53

Fees
First of all I'd say without hestitation yes do it.

Secondly dont fall into one of the biggest traps of taking in work to increase fee income if it aint profitable.

It is oh so easy to build up a portfolio and look at the total fee income and overlook the profit you are making on each job. Dont just take in any client to increase your client numbers and fees, and dont be tempted to undercut a competitor to get the job.

I set up 3 years ago my fee income is about £200k and I can draw very nicely £60k because I have been very selective in the work I take and have highly automated the practice.

That said I do absolutely agree a lot of the work is so unrelated to accountancy and yes staffing can be horrid!

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By User deleted
02nd Aug 2006 13:53

Yes and no
5 years ago I found myself jobless having had my firm taken over by a consolidator.

I stuck a sign on the door and got going.

It has been an absolute emotional rollercoaster with good and bad points.

Getting clients seems to have come naturally to me (doing about £500k of fees)

Money-wise its there on paper, but I don't earn more than £30k drawable at the moment. (Now understand that eternal question "You say I've made X profit and have Y tax to pay, but where is it?")

Staff are an absolute nightmare

Regulation is a huge burden - and all of the institutes / associations seem to want to beat you from a great hight (But then again, those that know Chris Frederiksen will remember that he often claims you are not running your practice right if you don't get in trouble with your regulator every 18mths or so!!!)

Yes I have my freedom - for example I hate wearing ties and so never do any more, BUT, I am constantly hustling and dealing with stuff that has nothing to do with accountancy but which comes as par for the course in being self employed. (Like delivery men who dump my new racking three floors below my office in the car park and don't get a signature from us before some of the local lowlife steal it)

Would I do it again?

Of course I would, this rubbish with all the fights is absolutly in my personality

BUT

Everything has a price and if you are use to big money and a protected life, this isn't going to be the thing you should do.

If you want my free newsletter on how to develop your practice, go to:

www.salter-newman.co.uk

sign up for the newsletter and under catagories tick "accountants in practice"

Best regards

Robert Newman

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