Hi all,
I am CIMA qualified (7 years accounting experience) and currently work in industry as a Group Management Accountant. I am fed up with being part of the rat race and being managed by someone else/being constantly answerable to a boss! :-) hence I am going to setup on my own and start to get my own clients where I will work from home initially.
I have a Ltd company setup from when I did some contracting so will use that. I am looking to get started ASAP and will be attending one of the CIMA MiP meetings in the next few weeks in order to get advice and start networking.
My question is really what advice can people give me on getting clients, keeping up to date on tax knowledge, how to go about arranging a continuity agreement with another firm, balancing client workload with working a full time job 9-6pm! You've got to start somewhere and while I can't afford to quit my job just yet I will have to do client work evenings and weekends. I am prepared to sacrifice my time to get started.
Are there any current CIMA MiPs who would wish to share their experience getting setup and any advice?
What do you wish you had been told before having started out on your own?
Would love to trade ideas/experiences. Anything at all would be much appreciated!
Replies (29)
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Well James, as a CIMA MiP myself I have a quick question. Have you got your practising certificate? You will need it to do the things you hope to do for clients.
What makes you think that CIMA will grant a PC if you don't (by your own admission) have any experience or know-how of how to go about the job? Why not moonlight as a dentist or lawyer instead - it pays better?
I'm going back a good few years, but you will quickly realise (you may have already) that CIMA doesn't equip you for some services you intend to provide.
My approach was to be honest about it and not take on work I wasn't qualified to do. This meant a very low key start doing bookkeeping. This led to a client's firm providing me with work to do at their office and some work to do from my own. It was invaluable.
After that the firm regularly recommended me to other clients and to businesses that were too small for them to take on.
Cima runs courses about setting up as a Mip so I would find out if there are any due soon. When I set up about 10 years ago and I had experience of the things you mention below it isn't the same as being in industry. I was lucky enough to be able to leave my full time job and spent about 6 months networking, going on training courses and studying to bring me up to date with current legislation etc. I'm not trying to put you off but you will need to make sure to attend training courses. I go on about 10 a year because things change frequently. I use PTP and Smart. My first clients came through networking but now it is all recommends. Good luck working in the evening and weekends won't be that easy.
You're an accountant in industry and are worried about how to juggle a 'full time' job with a sideline?
TBH I always wondered what you lot actually DID with the other three days a week. I assumed this was amongst it............
You'd best crack on because you've just told your employer on a public forum that you are planning to conduct a business outside your employment (which is probably contrary to your employment contract) and then leave.
It took me about 10 seconds to find your LinkedIn profile.
Also, I recommend not posting as "Anonymous" in future (just use some nom-de-plume). It winds up regular posters. In fact, if I'd noticed you had done so, I wouldn't have made a reply!
on the contrary James, I suspect you will find that life in practice is so very different from life as an employee. You may find that some of the comments have grounds, albeit perhaps not phrased in the most politically correct way.
I would add a note of caution - it is likely (but not in all cases) that you will be asked to do the business owners personal tax too, that is a hurdle you will need to consider.
You will find that lots of us on here will have been in the situation where we have had to sort out the mess caused by moonlighters who do not have the relevant training, experience and knowledge to correctly deal with their clients' affairs. Somehow people seem to think you can be ready to practice with a couple of evening's revision and a link to the HMRC website.
To be fair, those that get through the first year without imploding do eventually realise that in another year or two they might have a handle on it, and even start to earn some money.
James, you have quickly found out that those that have only worked in practice like to blow smoke up their own a r s e. The transition is not as difficult as some would have you believe.
Working in industry gives you other skills that are transferrable, but you’ll probably need to get up to scratch with tax. If you do the ATT qualification, it is more than sufficient to run a small practice.
Spot on about the smoke...
...James - ignore the grumpy gits, best of luck with your new venture.
I would recommend that you use this forum as a source of information (you'll pick up plenty from lurking). You will find that a lot of the questions and queries you have have already been asked on here - just google it and add 'accountingweb' in the search reference.
I qualified in practice in 1994 and hated it, went into industry in 1995 and then moved back into practice (started my own) in 2011 when I realised how badly that lot were doing it ;o).
Its not as hard to start as some posters have suggested, just make sure you know your limitations and always try to improve your knowledge.
You should use the internet as a resource tool to add to your knowledge and back up what you learn on the job and on training courses.
I would suggest that you try and find a mentor, someone who has been in your position and can offer support and guidance.
Two year from now you'll be established and ready to bin the day job (if you haven't done it before then).
I bought the study texts but didn't do the exams. Clients wouldn't know or care about the difference between ATT and AAT.
I found it helpful to see the scope of what I should know, then identify the weak areas and set about acquiring knowledge including through the big classroom that is Mercia Training.
I'd recommend the ATT route too. I studied ACCA at a big firm and wasn't allowed near tax returns as it wasn't my department. Took ATT when I joined a smaller firm, as a refresher more than needing the qualification and it definitely gave a good grounding of the key bits you need to operate in practice.
There is a lot of hard work to do when you go it alone but it is worth the effort in the long run.
As others have said ATT will give you enough to deal with most of the tax, it is the other [***] that you have to deal with that is the problem....
That raises a good point.
One of the biggest learning curves is knowing how to handle clients ... oh, thereby hangs a tale!
That old saying of 'the customer is always right' is wholly inappropriate to our industry.
It isnt that difficult to get yourself set up and running.
I have a practice background. Worked in practice for about 15 years then leaped over to industry (lasted 6 months and hated it) and moved back to practice. But while working back in practice started to build up my own business working evenings and weekends. Within 6 months had enough work to work for myself full time.
That was 5 years ago and now have over 200 clients, GRF of over £250k and 6 staff (3 full time and 3 part time).
Key when starting out is
1. Try lots of different marketing and see works best for you.
2. Know your value and dont price yourself cheap. If you attract price shoppers they will move on when someone else offers to do it cheaper. We dont compete on price but compete on the value we can offer.
3. Outsource those areas that is a drain on your time. For instance you shouldnt be doing filing, scanning, shredding, onboarding new clients, SEO/social media etc.