Good evening/morning/afternoon
to any members in practice out there offering either bookkeeping, accounts or tax services to individuals, sole traders and micro entities.
The forum history shows that you have so much good, practical advice to give to those of us on the other side of the fence - wanting to start our own businesses to offer such services.
I’d like to present my personal circumstances in the hope for any generous career advice members can bestow upon me in order to achieve my goal, bearing in mind I want to get from A to B in the most efficient, smartest way possible.
A )
I started my career at 21 with 5 years employment in an accounts assistant role in a travel business while studying for the AAT professional status. I achieved all my exams first time to become MAAT in 2013. My role extended from bookkeeping and accounts payable to payroll, and I have never looked back, maintaining current payroll and pensions knowledge and experience processing 700+ employees monthly.
I made a move to the finance dept of a legal services firm 3 years ago, and have enjoyed a stimulating, wide range of responsibilities. As well as being responsible for VAT reporting, I am also responsible for the payroll function, including a 500+ monthly payroll with p11d and psa reporting compliance. I also process and reconcile bank transactions, expenses, calculate prepayments and accruals, prepare balance sheet recs and p&l analysis. I achieve CIMA operational level last year.
Overall, I am comfortable in my job and I earn a sufficient annual salary to support myself, my wife and our small children. On paper you might think, what’s the problem here?
The problem is, I can’t stop scratching an itch that I would be more content working alone for myself. I have confident issues at times which make me doubt the idea, but mostly I do believe I have so many of the skills and determination needed to support myself by running a business.
For proof of my genuine passion for accounting, which I believe would be conveyable to clients, I can admit that I even maintain all my own accounting records in full double entry format, having done so for over 5 year. Yes, I even prepay my car tax over the correct period, depreciate my car on a straight line basis and accrue for electricity costs by taking meter readings (doesn’t everyone do this??!! :) )
Which brings me up to today. I want to get to
B
My dream is to be eventually running a one stop accounting shop (non necessary literal) for start up, sole traders, partnerships and micro entities, by offering any level of service in the range of basic bookkeeping support, perhaps payroll support, through to incorporation and the statutory compliance and tax work that clients need throughout the year. I have read about FRS 105 and cannot help but think there is any opportunity here to enter the market in my area and aim for that size of client to generate consistent fees across a variety of service levels.
I believe I could obtain an AAT practicing license to offer the kinds of tasks I perform now such as Bookkeeping/Expenses/VAT/Payroll.
How on earth am I ever going to be able to learn and become licensed to do the rest?
You know, just the small details like preparing year end accounts, tax computations and statutory filing??? (I hope the sarcasm was apparent there)
I’ve been rolling this question around in my head for a month and I can’t solve it.
I turn 30 soon and live in East Anglia if this makes any difference to the advice anyone can give.
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Replies (21)
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Firstly, you will need to accept that your income will take a dive, possibly for a good while, until you become established. Have you factored this in?
You might want to get a job with a firm first to see if you like the culture and gain some valuable training in routines and procedures. If you are enthused by the experience it should help you start you own practice more efficiently.
Thank you, this was great advice. Just to give you an update, I have since changed jobs and now work in practice. Every day I learn and improve and Im getting the skills and knowledge I wanted to acquire.
That sounds ideal, although in reality will I manage to convince a practice owner to take on me instead of a younger candidate who can/will accept much less pay? I would be willing and able to work for less pay than I earn now. And in comparison to the ‘youngster’ I would be coming from a more advanced starting point.
Practice experience I would say would be a must to be able to have a chance of being able to properly advise.
Are there any small local firms you can approach, particularly with older partners who may be looking to retire that you can work with, you get support and potentially a ready made practice.
Technical knowledge is one thing, and I would suggest that your training and experience will have some large holes in, a year or two in practice would not only help fill these gaps but also make you aware of the other matters you need to be aware of running a practice, marketing skills, compliance issues, software options, planning and client management etc.
I made the leap in my thirties, worked for a small practice for five years before going it alone. Don’t wait for jobs to be advertised, contact local firms, I echo all that accountantcole has posted. Consider half and half - working for yourself doing the stuff you are good at and a part time job bringing your skills up to the level you need for the rest. Do not expect to make a fortune to start with, it will be hard work. But the work is out there, especially at bookkeeping/compliance level. When AE came in I gained payroll clients who could no longer do it all themselves, I imagine MTD in all its guises will present opportunities as well.
Thank you both, sound advice.
I had thought the same thing about MTD presenting opportunities to help an accountant offload in terms of bookkeeping/VAT/Payroll.
I suppose (but would appreciate feedback on this) that there might even be practitioners out there who don't offer payroll and AE services and would be able to with me in house?
As per the others, go work in practice for a bit, you should find very small firms ie the "boss + 1 or 2" will give you the widest experience. You would be an attractive assistant for my business for example.
Learn why watching others do it, and work up.
its much easier than going "cold turkey". (which is what I did!)
You may find you don't want your own business, you may find you do.
Thank you taking the time to respond.
It's reassuring to hear that I would be employable for a small practice and I would love the opportunity to put in 3-5 years in that kind of role - I'm not expecting any shortcuts.
Update:
Last week I sent my CV to a local firm who are advertising for part-time bookkeepers/payroll clerks.
Had an email back this morning from the director, wishing to arrange an initial telephone call. Won't get my hopes up too much just yet as I might not be what they are looking for but fingers crossed this develops into something!
One of the most informative enquiries that I've seen on Aweb, for some time! I admire you and wish you well, in your future.
If you've got some "personality" and, you sound willing to learn, I guess you'll do well, in the profession, in the long run.
There are still plenty of client's around, looking for something different and, at your age, there will be myriad new ideas and themes coming into the world of; self-assessment and taxation.
Something, somewhere, tells me you'll do OK and, I sincerely hope that you do.
Do not expect to make a fortune to start with, it will be hard work. But the work is out there, especially at bookkeeping/compliance level. When AE came in I gained payroll clients who could no longer do it all themselves, I imagine MTD in all its guises will present opportunities as well.
This ^
UPDATE
Had a good chat today with the local accountant, from which the possibility for some work might arise. They seem a good fit for me, just hope it’s reciprocated! I get the feeling though that to secure work like this I need to able to offer myself on a more flexible basis. The idea of me only being available to work on Fridays, for example, would not make me as attractive a somebody to partner with than If I were able to offer my service at short notice, with quick and efficient completion times.
I’m now thinking should I just obtain the MAAT practice license - which I’d be very proud of having been a student member, full member, and even Lecturer (Level 2 last year) - and target my market at accountants who need payroll, vat and bookkeeping support in busy times on a job by job basis.
I have extensive payroll experience with different payroll and AE systems, p11d and PSA reports and filing. I have sound VAT knowledge and I am proud and passionate about what I do for a living. So much so that I maintain my personal and household finances in full double entry format! I should (and I believe will) be able to deliver a successful, value for money service and still turn a profit.
If anyone can add anything further to the advice already given, please do as any feedback whatsoever would be appreciated. I really am grateful for the input so far and glad I’m in a supportive forum for us to “sound it out”.
Be careful of restraint of trade clauses in employment contracts if you do join a local firm.
When I started out I was daunted by the idea of marketing myself so opted for the franchise route, which has worked really well for me.
Being part of a network gives me the support I desire whilst allowing me the advantages of being my own boss and running my own business.
Some franchises offer a mentoring scheme which could work well in your case as you bring your technical skills uo to the required level.
A further point: you may wish to add depth to your tax knowledge by studying for the ATT qualification.
Your change of direction will be hard work, particularly with a young family, but worthwhile.
Good luck with whatever you decide to do.
PS I too keep detailed accounts of my own and the family's finances (but not to the extent of spreading things like car tax) so you are not the only one!
Thanks Tomazaan! Good to know I'm not alone...
Funnily enough I was looking into ATT over the weekend. Right now I'm thinking this plan:
1) Request to reduce my hours at work from 37.5 to 20 over 5 days. Whether or not this will be accepted will depend on lots of variables which I wont list here.
2) Obtain AAT practicing license, insurances and contact local accountants to offer bookkeeping, VAT and payroll services. I anticipate there to be work about with MTD around the corner.
3) Study ATT at home. Once completed I might get offered accounts prep/tax work from the accountants I will have been working with, thus building up my knowledge and experience.
4) A couple of years of this and I'll be in a better position to know whether a career in practice is right for me.
Just a thought. What’s the difference between CTA and ATT if targeting small business owners?
