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Regret?

Regret?

Didn't find your answer?

I am seriously considering resigning ACCA membership and joining AAT as it is easier to get a practicing certificate from them and they appear more supportive.

Because I have a young family the only option available to me is set up a practice and work from home. I have a friend who has agreed to supervise my work for a fee till I get my confidence. I am currently studying ATT to brush up my tax knowledge and my long term plan is to become a chartered tax advisor.

The other option is to work under another friend's firm but give her 50% of the fees paid by each client I sign up. She has an ACCA practicing certificate but is not yet an approved employer as she is only starting out.

Am I likely to regret resigning ACCA in future? Or should I grit my teeth build a client base under friend x's friend for 18 months (time needed for ACCA practicing certificate) while giving her half the fees and doing the work?

Replies (13)

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By Flash Gordon
04th Aug 2014 16:44

No regrets

I doubt you'll regret it to be honest. I think you'd regret it more if you handed over half your fees because you'd need twice the clients. You sound like you've got a good plan so go with it and make it work!

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By merlyn
04th Aug 2014 17:21

Friends Firm

Assuming the clients you sign would actually be signing to your friends firm and not you then you will actually be building a client base for your friend and not yourself.

As your friend is just starting out then apart from the ACCA not really seeing what additional benefit they offer which is worth 50% of your fee revenue, unless they have a big marketing budget and you will be getting clients from this.

 

 

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By Yesican
04th Aug 2014 17:41

Marketing budget
I actually have to pay for the marketing I do as "we" are starting from scratch.

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By merlyn
04th Aug 2014 18:21

we?

"We" seems to be a very relative term as you will be spending money on marketing to get your friend clients and also hand over 50% of the fees.

As your friend has no proven track record then marketing using their companies name over one you create yourself doesn't provide any benefit.

As you are both starting out then why not suggest a partnership where you split fee revenue based on the percentage of fees generated and with clearly defined rules on what happens to clients if you decide to split up in the future?

But to answer to the original question, you will only regret the things in life you didn't do.

 

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By Yesican
04th Aug 2014 18:41

ACCA rules
I can't market myself as offering services beyond bookkeeping nor can I be a partner in a firm that does as I will be in breach of ACCA rules.

I could resign ACCA, set up under AAT, find my own clients and pay another experienced accountant friend a fee (less than 50%) to review my work.

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By merlyn
04th Aug 2014 18:48

AACA vs AAT
Do you think your potential clients will mind if you are AAT rather than AACA?

Personally provided my accountant offered good customer service and good tax advice then wouldn't make any difference to my choice.

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By Tosie
04th Aug 2014 19:09

You would regret it

Your friend is taking you for a mug.50% and you do all the work and pay for the marketing is not the action of a friend.

It is all very well for people who have established practices to say that you do not need acca qualifications but when you are starting out it is an important marketing tool.

By building up a book-keeping practice you will be making important contacts and I am sure that you can earn just as much from book-keeping as you would by paying half your fee to a so called friend.

The other aspect is that if you hate running your own practice and want to get a job you have thrown away a hard earned qualification.

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By carnmores
05th Aug 2014 17:47

50%
Some people are so greedy

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Replying to johnhemming:
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By Yesican
05th Aug 2014 18:45

Risk factor
Apparently 50% is for risk the firm bears should an enquiry arise plus cost of indemnity insurance, ACCA practicing certificate and reviewing my work.

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By carnmores
05th Aug 2014 19:46

you are being
CONNED lets say insurance is 4k pro fees 1k and hot or cold file reviews 6k , that's 11k , if your turnover is 20k that's not feasible if its 60k, then its daylight robbery, re negotiate or find someone else, with friends like that I hope you don't have any enemies

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By Yesican
05th Aug 2014 20:32

Thank you
I didn't realise how bad it was. I thought it was the going rate as someone else in practice said they want 50%. Back to the drawing board. I hope to dear God I don't have to go back into industry or being employed.

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By merlyn
05th Aug 2014 20:39

startup
If you were going into an established practice with a good reputation in the industry you could use and they were letting you build up your own client base whilst providing the security of someone checking your work etc. Then 50% may not be a bad deal but as your friend is just starting up then it sounds like a terrible offer.

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By dbowleracca
05th Aug 2014 21:34

Subcontract?
Have you thought of doing subcontract work for a while? That pays well and can be done at home around the kids. You may even be able to get it signed off by an approved employer to help with your practicing certificate with ACCA.

Where are you based? We may be able to help.

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