Any accountants out there? Long (sorry)

[Solitaire 10]

Hi everyone,

 

I wondered if I could get some thoughts/advice from any practising accountants out there.

 

I'm a qualified Chartered Certified Accountant (FCCA) and have worked in the not for profit sector since qualifying. I did work in practice prior to undertaking my accountancy qualifications but that was a fair while ago and doubtless things have moved on since then.

 

I am now thinking that I would like, in the future, to set up my own small business as a sole practioner offering accountancy services and advice to small business clients. I would not intend to offer audit services - just accounts preparation, taxation advice and so on. My issues:

 

1. I have very limited experience of working in practice and would need to get up to speed before I felt it appropriate to offer services to others

 

2. Despite being fully qualified, I do not have a practising certificate, as a result of not having worked in practice since qualifying. If I wished to remain a member of the ACCA whilst practising - and I would wish to remain a member - I would need to obtain such a certificate.

 

In order to get a practising certificate, I need to obtain three years' relevant experience, working under the supervison of an appropriately qualified person, ie a Chartered Accountant/Chartered Certified Accountant. Technically, this would have to be an ACCA approved employer but I have contacted the ACCA previously who have said they would be willing to accept supervison from an appropriately qualified accountant, even if they were not an approved employer.

 

My question is: does anyone have any advice as to the best way for me to obtain the three years supervised experience? I don't know if I could realistically get a job in practice at a reasonable level (I would expect to take a pay cut on my current salary - but I would still need to earn enough to pay my bills). I guess I'd be competing for jobs with younger, hence cheaper, candidates - I'm 43 for the record, so plenty of experience and very reliable but just not a school/university leaver

 

I wondered if it may be an option to come to an arrangement with a sole practioner, or small partnership, where someone may be looking to retire in the next 3-5 years, with a view to obtaining the necessary work experience, maybe on a part time basis, obtaining my practising certificate and then buying into the business when the person does wish to retire.

 

This is just one idea - I'm sure there are other options.

 

Many thanks to anyone who has managed to read through to the end. Your advice would be greatly appreciated.

 

Thanks and best wishes,

 

Solitaire

Edited March 28, 2011 by Solitaire

[ChrisTodd 10]

When you haven't worked for an accountant it can be difficult to obtain the three years experience you need.

 

I have known people contact ACCA about ways to reduce or overcome this hurdle and they have basically said there is nothing they can do to change that requirement.

 

I would say your best option could be to try and find work with an accountant who is looking to retire in four to five years time.

 

Unfortunately if you tell people in advance that you are looking to set up your own practice after gaining the three years experience it might be difficult to obtain a job. Not really because they will know you are leaving, but because they may think you will take some of their clients with you.

 

And that is the other reason trying to find an existing practice where someone is looking to retire might help. To set up any business from scratch is very difficult.

 

You would almost certainly need to trade from an office, rather than home, and straight away that adds £10,000 to £15,000 to your costs. Therefore you need £40,000 of fees just to give yourself the minimum wage.

 

Perception from clients and potential clients is a big factor. If you are qualified they would expect you to have an office. If you don't have an office you may as well start trading now from home and ignore your qualification.

 

Age can work in your favour, as you can show maturity and reliability, but lack of experience can work against you. Someone with no formal qualifications, but at your age now, who started work at 16 can probably do every single job the partners can.

 

I would say the most important factor is to obtain a job in the first instance, without worrying too much about setting up your own practice. Then if the opportunity comes along to take over a practice or work with your own clients within a practice then you can take it. Setting up from scratch would be very difficult to make work I think.

 

Good luck.

[Ian Thompson 10]

I would back up all that Chris said. Unfortunately running an accountancy practice from scratch is not the nice Dick Whittington path that many people envisage and I would also add that you will find practice a whole new ball-game in terms of the type of problems you will encounter. eg Regularly attending meetings to keep technically up to date while at the same time collecting slow payers debts and helping the plumber when the pipes leak in the office!

[Solitaire 10]

Could I just say a huge thank you to Chris and Ian for their helpful and valuable advice.

 

I'm definitely looking into some options for the future.

 

Thanks again guys.

 

Solitaire

[tigger10 10]

Hi Solitaire, I am in a similar position to you, FCCA, not-for-profit experience, but I did work in practice before and got my relevant experience and recently confirmed with the association that I could now apply for my certificate. I have been contemplating setting up in practice for the last few months but haven't taken the plunge yet for various reasons. It would be nice to share experiences and see if we could help each other. If you pm me I can explain a bit more about where I am up to and some ideas that I have had.

[BizBuilders 10]

You would almost certainly need to trade from an office, rather than home, and straight away that adds £10,000 to £15,000 to your costs. Therefore you need £40,000 of fees just to give yourself the minimum wage.

 

 

Hi

 

I agree with Ian and would certainly back up what Chris has said.

 

As another option to leasing your own office, you could look into the 'serviced office' option. This is perfect for starting out and combines the advantages of a seperate business premises, with a relatively low cost. They are also usually very flexible with terms.

 

I would agree through that you need a business premises to enhance the perception potential clients have of you and your business.

 

Good Luck

[dodecsuk 10]

I am in a similar position and have found the replies most informative