Forum

• # 70425
• Tue 26 Apr 2011 10:25 AM

Hello All,

My name is Dave and I am new to ICB and just wanted to say a quick Hi to people as this is the first time that I have used this!

I also wanted to pose a question that I have preying on my mind at present. I am currently just about to sit my Level one paper, which is obviously an early stage of the studies. I have previously enrolled at Ideal School for the full career path covering up to Level 3, self aseesment, payroll and small business management. I have worked in a chartered accountancy practice many moons ago and have a reasonable understanding still of double entry etc and am an ACCA finalist so should be able to cover the examinations at a reasonable pace up to Level 3.

My plan was to work through the exams and reduce my employemnt down to part time and set up a practice at the appropriate time - i.e. after all of my papers have been sat.

I have a good job in a major bank - I will be honest about figures here as if anybody that has set up a practice will appreciate likely incomes and difficulties etc... I currently earn circa £35K and have a nice company merc and they are currently seeking staff to volunteer for redundancy. A package would total circa £17.5K which would provide some good working capital to help establish a business but am conscious that would be going from a standing start as have no clients and is a massive gamble to accept and try and establish a practice. I contribute towards my company car, pension etc and the VR package would equate to circa 9 months net pay at present.

I could get through my level two exams pretty quickly if i accept Voultary Redundancy, as would have the time.

My main question after all of this waffle is whether I would be insane to accept the voluntary package - as this is the way that I am leaning. I do not particularly enjoy my current role and wish to work for myself but obviously I have bills etc to pay and need to live. I was hoping that somebody who has been through the process of setting up a practice would be able to give me an honest opinion as to what they would do in my situation as have been there and done it.

At present I am taking the view that although not good timing in terms of my exam position, when else would i have the opportunity to start with that level of cash in the bank to assist the process.



Thanks guys. Any comments/opinions would be sincerely appreciated.

Hope everybody enjoyed the bank hol weekend.


Kind regards


Dave.

• DaveY
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• # 70474
• Wed 27 Apr 2011 10:48 PM

Hi Dave

I did similar - gave up my full time position to set up in practice, but I already had one ex client, from years ago, wanting me to do his bookkeeping again and another three start-up businesses asking me to do theirs (word of mouth).

I gave up a steady wage as my son started school and I needed to be here for school holidays, sick days etc.

Loving it, but (always a but):

1)  One client didnt pay me on time and I had to chase for the money - could have landed me in it had I been the major wage earner in the household.  Still unpleasant taste in mouth.

2)  Having to put up with justifying your invoice all the time.

3)  Working from home means you need to be so well disciplined e.g. no housework during those hours

You really need to do your homework and legwork to see how many clients you can potentially get and the time it will take to do the work to earn the wage you need to survive.

Hope this helps a bit - good luck

 

Hope this helps

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• # 70491
• Thu 28 Apr 2011 04:41 PM

Hi Liz,


I hope that you have had a good day.


Thank you for your response.

I have always wanted to work for myself and I don't think that there is ever what could be defined as a good time to jack in a perfectly good job! In fact some people think that I am off my head for considering it! If everybody thought like that there would be no jobs anywhere as nobody would go into business by themself though.

I would imagine having children to pick up from school makes it an ideal job as you can work around it.

I am used to working at home as I am location independent as the bank likes to call it and work at home one or two days a week. I would quite like to work on client premises if possible as that is what i am used to doing as a bank auditor, plus in my mind people will have more loyalty to retaining my services and not jumping ship to save twenty pounds a year if they get to know me and see me regularly. Maybe thats just a romantic view!

The hardest part is not knowing how many clients i am going to obtain in what timescale but i will apply for a part time bookkeeping job in a company to keep myself ticking over.

How long has your practice been up and running?

Thank you again for takin the time to reply.

• DaveY
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• # 70503
• Fri 29 Apr 2011 04:27 PM

Hi Davey

Been up and running since August

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• # 70511
• Sun 01 May 2011 05:14 PM

Hi Dave

I set up my own practise in March and already have my books full, two clients who provide 40 hours work per week and two clients who provide a couple of hours work per month. How much you can charge depends on where you are and your level of experience. I guess anything from £12 to £35 ph, I live in London and am charging towards the lower end of that scale.

I'm not sure anyone can advise you what to do, as you say the risks are obvious so it's up to you to make the choice.

In my case I have no regrets, although I am currently taking my Payroll Diploma which will be followed by the self assesment exam and then make a start on Level IV. When I add it all up I'm easily putting in a 50 to 60 hour week for what I regard as a fairly modest salary. Having said that I am building my own practise which I hope will provide me with a stable income.

cheers
Mike

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• # 70512
• Sun 01 May 2011 05:52 PM

Hi My name is Trish and I started up my own practice here in 2006 I have 2 clients that I do 20-30 hours a week for each and another for 4 hours a week and other ones that I do throughout the year that are Sole Traders, so I am kept pretty busy. I was pretty lucky in that someone asked me to do their bookkeeping when I was delivering papers for their local Village Store then his brother asked me to do a few hours a week who run a family hgv/coach and car  driver training company and then it just went on from there when I advertised in a village parish magazine, so everyone I work for actually all know each other which is a bit strange but good. Just thought  Id share my way I started up. If you live near local villages most of the local parish magazines let you advertise for free which is a great and cheap way to start, so Good Luck everyone and as I have worked for myself for quite a while now I have just bought my lovely car that I have worked for, my dream car, so its all looking good, so keep trying folks it will come together. All the best From Trish.

• Hi Just though Id introduce myself to this new forum What a great idea. My name is Trish and I am in West Sussex running A bookkeeping Practice as a Sole Trader Am really busy now, having started up in 2006 Bookkeeping helping out a Village Stores to start with when I was delivering early morning Newspapers then I was asked to do some bookkeeping for his brother who runs a Heavy Goods Vehicle Training Company then recommended on to someone else and it has just carried on from there, so have been very Lucky. Now have 8 clients  2 of whom I do over 20 hours a week each so I say to everyone whos looking for clients keep at it. Its not so scary once you get going All the best to you all Trish.
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