ACA qualified and starting my own practice

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Hi, 

I'm ACA qualified and have 5 years experience at a Big 4 firm. However, I took 4 years off work after having children. I kept up my skills during this time by volunteering my services for a range of local non-profits (childrens centres, libraries etc).  I'm now very interested in starting my own practice to work around school hours but I need lots and lots of guidance. I've read all the articles on starting practice on this website but there are still quite a few things I'm unsure on.

1. Software: I use QB as my accounting software and Microsoft OneDrive to store client documents. Do I need to think about adding new/ paid for software?

2: Marketing: I have no experience in this area. Any tips would be much appreciated. My existing clients have offered to recommend me, but I dont have a marketing plan beyond that.

3. Ongoing learning/ support: This worries me the most. Having trained/ worked at a large firm, I'm used to working with a lot of specialist support and resources and I'm very worried about missing an update or no recognising an issue. I'm particularly worried about industries I havent worked in before. I've signed up for the AccountingWeb alerts but they seem quite sporadic in what updates to standards/ legislations etc are covered. Is there a good comprehensive  source (paid or free) for keeping myself up to date? I'm considering a subscription to PwC Inform.

4. Costs: As I've been out of work for a while I would ideally like to keep costs as low as possible. Essential costs are insurance, basic marketing and a practising certificate from the ICAEW. Optional costs are a basic website developer, logo, paid cloud storage, subscription to PwC Inform etc. Any advice on which of these I should incur upfront?

Thank you!

 

 

Replies (20)

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By Moonbeam
04th Sep 2018 15:52

I'll start with just one area. I use SWAT for online cpd and they are excellent.

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By DSamuelson
04th Sep 2018 17:22

Thank you! I'll check it out

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By Wanderer
04th Sep 2018 16:05

Good for you in recognising that there will be deficiencies in your knowledge and experience.

I feel that one of the biggest problems that you may encounter is that you have trained in a big 4 firm but will likely be dealing with sole traders, small businesses etc.

Could you, rather than start on your own at this stage, not get part time employment with a smaller firm to increase your experience and have that support in place?

Also make sure that you satisfy the ICAEW requirements for a PC.

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By GW
04th Sep 2018 16:44

Most individuals and small businesses are more concerned with tax than accounts and find an accountant to calculate and minimise tax liabilities. Do you have the knowledge to do this?

Software, how are you going to deal with:
Personal tax returns, Corporation tax returns, PAYE, VAT?

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Replying to GW:
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By DSamuelson
04th Sep 2018 17:27

Thank you. I agree, tax was a big gap in my knowledge. I've had to gain a rough knowledge over the past 4 years submitting tax returns for non-profits but I don't have detailed knowledge. Its good to know, I will concentrate CPD efforts in this area.

Re Software in the past I have used QB's tax software or the online Government Gateway software (although its very labour intensive). I'll research additional tax software to use, any recommendations?

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By Cardigan
04th Sep 2018 16:50

When I started out I had a few people I could call on if I needed to double check something. Sometimes it was a tax related question, sometimes a practice related one.

Most of the time I was 99% sure, but just wanted confirmation. I found this of great help and even to this day, we ring each other with various queries.

I had experience in a small/medium sized firm and learned so much there.

I also did a tax course as a refresher. Although I knew most of the information, it helped to solidify what I had learned over the years and the books are still a great resource in the office (even if the rates have changed!)

As for marketing, there are some great resources online dedicated to marketing for accountants. Not sure if I can name any of them here! Our website plus Google Adwords brings in the most clients for us, followed by referral. You need to try a few things to see which ones work best for you. As a small business you have the freedom to give things a go. For me, that was the most exciting part of starting a new business. The blank slate.

There will be things you will learn as you go along, that you can only learn by living through them. All the books/advice in the world can't prepare you for the ups and downs of running a business.

Just make sure you are charging enough for your services!

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Replying to Cardigan:
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By DSamuelson
04th Sep 2018 17:29

Thank you! I have a solid support network of people I trained with, but coincidentally they've all moved out of practice/ audit to industry, internal audit or consultancy. I agree, they are still a valuable resource though.

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By marks
04th Sep 2018 20:51

Personally i think with a Big 4 background you wont be equipped with the skills or knowledge to run your own small accounts practice.

I expect that most people on here who run their own practice either trained in a small/medium sized accounts firm or had some experience in one.

I would try and get a part time job in a local small/medium sized firm to get your accounts/tax knowledge up to date to deal with the SME market.

Most small businesses are looking for one or more of the following

1. Help to reduce their tax
2. Freeing their time to work on their business
3. Giving them money freedom by you helping them growing their business
4. Taking the stress away from dealing with payroll, accounts compliance, bookkeeping, VAT returns, tax returns etc.

You will get asked a whole myriad of questions, some not even accounts/tax related but more business related.

Some you will be able to answer and some you wont. After working across 6 small/medium sized accounts firms over 16 years and having worked in my own practice over the last 6 years, starting with just myself and currently with 6 employees, I still get asked things that I cant answer.

Then you have all the issues of running your own business and dealing with; marketing, what software to use, keeping up your CPD, dealing with IT issues, dealing with staff if you take on employees, finding and keeping clients, dealing with emails, meeting new prospects etc etc.

It isnt easy and it isnt getting easier.

Cloud accounting is putting a downward pressure on compliance work so the accountant who relied on compliance work to provide most of their income will probably erode over the next 5-10 years. You need to become more of a business advisor and help clients grow their business to get the best return.

Then again, I enjoy what I do, helping clients overcome their problems and wouldnt go back to working for someone else.

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By Tim Vane
04th Sep 2018 23:09

Could all be moot if ICAEW won’t issue a PC, so I would start there first. They seem to be giving them out like confetti nowadays so you may be fine, but it would be foolish to invest much time or money until you have it sorted.

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By DSamuelson
05th Sep 2018 11:50

Thanks Tim, I didnt realise they could decline to issue a PC, I'll start there.

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By DSamuelson
05th Sep 2018 11:50

Thanks Tim, I didnt realise they could decline to issue a PC, I'll start there.

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By DSamuelson
05th Sep 2018 11:50

Thanks Tim, I didnt realise they could decline to issue a PC, I'll start there.

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By Matrix
05th Sep 2018 19:37

Looks like they are welcoming you with open arms per below.

I had tax but not financial reporting experience and got a PC and all has been fine. Well, the challenges tend to be more on the commercial side than the technical side, there is so much to learn running your own business. AWeb has been invaluable.

Go to the conference and good luck.

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Red Leader
By Red Leader
05th Sep 2018 11:49

Lots of good advice on this thread.

I spent the first 7 years of my career at big accountancy firms. Absolutely no use for me as a sole practitioner dealing with individuals and small businesses. The best "training" I had was subbing at a small local firm while building up my practice. Eye opener.

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By Martin B
05th Sep 2018 12:06

You can do it but need to think long term. Many excellent comments above.
I would suggest you get a part-time position in a small firm and get the 'real word' experience you will not have received at the big 4 firm. It will open your eyes plus so many ongoing changes in the accountancy industry .
After a year or two review and plan ahead.

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Caroline
By accountantccole
05th Sep 2018 12:30

I trained with Deloittes and whilst it was in the small business department so I got a reasonable feel for all aspects of business/ accounts/ tax, we weren't really allowed to do tax returns. I did ATT to get back up to speed which was really helpful.
Like some other posters, I would suggest trying to get experience at a local firm if you can, it is a whole different world at small firm level and you are more likely to fill the gaps in your knowledge

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By SamBUK
05th Sep 2018 16:10

Hi

Please make contact with me [email protected]. We can offer you a free place at this year's Practice 2018 conference (15 - 16 November) and I can put you in touch with CABA who can offer start up funding for your practice. I can also provide information on signing up for free on the Enterprise Nation Platform (allowing you to connect with 70,000 small businesses) and can tell you more about other resources to help you get set up.

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By HH
06th Sep 2018 15:44

I run a small practice and would really like to retire. If you are in London we can talk and perhaps come to some arrangements

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Replying to HH:
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By Rehan1
06th Nov 2018 17:01

Hi HH,

Have you retired ? or still in practice, I would be interested to get in touch.

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By Beata 2
30th Nov 2018 16:25

Hi HH

I would be interested in talking to you if this is still available.

Regards

Beata

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