Opening a Practice after Qualifying. Good/Bad Idea?

danjswade

So I'm studying lvl 4 and starting to think of what to do once I qualify (hopeful I know!). So I'm going to head on and go to either CIMA or ACCA but I'm also pondering going it alone and starting up my own firm.

I know AAT require me to be licensed etc. but I was more looking for peoples experiences, views, pitfalls and any general advise really. I'll still be working my 9-5 so won't be my main source of income, but in future........

Look forward to hearing from you and your ideas/experiences.

Neillaw

You don't mention if your in practice or industry?

It's hard building a practice on-top of a 9-5 job, however your typical one man band sole traders only have available time at evenings or weekends.

I find that contract work suits me as a 3 month contract will tie me over when I'm short of work and it brings in much needed funds.

ACCA won't allow students to provide any type of invoiced work.

danjswade

I'm currently working in industry (my 9-5). Yeah I can imagine dedicating enough time would be tricky, but something I hope would be beneficial and as you say, I'd be looking at the smaller clients to start with anyway so times would more likely be evening/weekend.

Really? Do they state why? That seems a bit strange.

TreadStone

danjswade said:

I'm also pondering going it alone and starting up my own firm.

Am I correct in assuming this is still some way off then ? And also that this new firm will be offering bookkeeping, compliance, payroll, VAT, tax advice etc ?

If so, and as you currently work in industry, I'd seriously look for a position within a practice and gain some experience there before you even consider going it alone.

Just an opinion but I'd be surprised (and a bit worried) should anyone advise otherwise.

danjswade

The goal is to finish lvl 4 in July/August (possibly a bit later now with the announcement regarding MDCL assessment suspension) so some way off but not a million miles away.

I'd be looking at book-keeping, VAT, tax advice, SA, management accounts. All things I've done before in my job.

Why a bit worried? If these are task I do in my day to day job, albeit not practice, why should it be a concern? (genuine question)

TreadStone

danjswade said:

albeit not practice, (genuine question)

That's the concern. Again, it's only my opinion and not a dig at you personally.

You may want to read this thread which has recently been started:-

https://forums.aat.org.uk/discussion/444589/own-practice-practice-v-industry#latest

danjswade

I'll have a read through this post you've linked to.

danjswade

A very interesting post and it has made me question my near future aims (not overall goal though). It seems a tough situation to leave one for the other (industry for practice) as your experience might not count as much. But thanks for the help and pointers

danjswade

Limited I'll grant you. And as I said in my post above, after reading through the link shared by TreadStone, I am re-evaluating my plans. But thanks for helping

danjswade

mrme89 said:

You might have to take a lower salary, however.

Yeah, thats my main concern!

I do have a friend (ex colleague) who runs their own practice (has done for years) so I was going to approach him to see if he has any work I can help with to gain experience.