Working on your own as an Accountant
When I graduated from high school in 1980, I was a young feminist looking forward to a world of endless possibilities. My high school counselor was young, but she had a lot of "savvy" when it came to career counseling.
About two months prior to my graduation, I saw a newsclip about a profession that had historically been dominated by men, but one in which women were making fast inroads into: accounting. At that moment, I decided that I would study accounting. I declared my major the first day of classes, and I never changed it.
There were times when I doubted that decision; I had other interests. Writing was one of them. But I came to find out that with an accounting degree, I could always find a job. Every business, non-profit organization, and professional needs an accountant, to some extent. And, with the CPA/Tax Lawyer lobby being what it is, I knew that the tax code would always remain complicated. For those who think a flat tax rate is anywhere in our future, I've got some dessert acreage for you in Florida.
So, I plodded on, and got my degree in 1985. After my children were born, I decided to go to work on my own, taking small business clients on and helping them set up their accounting systems for them, taking care of their payroll and sales taxes, and helping them determine how they could lower their operating costs. I decided early on that I would refer them to an accountant specializing in income tax to do their personal and business income tax returns for one simple reason: the tax code is ever changing and quite complex, requiring someone to spend a lot of time researching and keeping up with legislation, etc. This in and of itself is a full time job. I decided I would help on the front end, in helping people keep their affairs in order so they could give as much information as possible to their tax accountant, and avoid an audit.
I've done this, on and off, for the last 25 years, so I know a little bit about what people are looking for, how you can market yourself, etc. I have always preferred working on my own, and taking clients on a word of mouth basis. Following are some practical suggestions to see if you are indeed, ready to take on clients at this point, and what you can do to prepare yourself for a career in professional service.
First of all, I would suggest that anyone wishing to provide accounting services work for a public accounting firm for at least two years. There are very good reasons for this, one of which is that if you work as an accountant for a company, you will not get a good feel for what its like to take care of more than one client. Chances are, if you work in the accounting department of a company, you are devoting your expertise to only one aspect of accounting.
Large corporations have the following positions available for accountants: cost accounting, payroll accounting, retail tax accounting, corporate income tax accounting, internal auditing, international tax accounting (thanks to the new "global economy"), financial accounting, etc. So, what happens is that you become very specialized in one area of not only accounting, but in that area of accounting specific to the industry you're employed in.
In working for a public firm, you will be exposed to a wide range of different companies, and you will discover what forms need to be filled out when, and to what agency, etc. You can learn strategies for managing multiple clients (which is entirely different that working for one employer), and reasonable turn around times. Additionally, you can establish relationships with field agents (state and federal) who "handle" your geographic area. For example, I got to know the state finance department's field person for unemployment tax, employee/employer payroll tax, sales tax, etc. I also got to know IRS agents covering the same taxes and forms. And building up a network among these folks is ALWAYS a good idea. When you make the transition to start on your own, you will already have allies set up.
Have business cards made up. They are invaluable when you first start your own business. But, if you play your cards right, most of your business will come to you by word of mouth. My friend Laura, a CPA says, "I was so nervous when I left [ a large accounting firm] to go on my own. I needn't have worried, because everyone wants someone to act as a buffer between them and the IRS and the state."
This is true. People are intimidated by these agencies. Focus on making them feel at ease with you, and letting them know that you know how to field their questions and work on their behalf. Here's another way in which your experience in a public accounting firm will help you; you can assure them that you already have established relationships with various officials.
Decide up front if you want to handle the income tax part of their business. If not, find a CPA you can work with, one who might give you some sort of credit for referrals.
Finally, and this is more important than your technical knowledge, remember that people are intimidated by accounting. And, let's face it, the stereotypical accountant doesn't have the best people skills in the world. Yet, if you want varied clients, you will need to make sure you have what it takes to "win friends and influence people." I've gotten some clients because I was better in working with people and easing their anxieties than their previous accountants.
Accounting is a great profession. You have the inside track on what works and what doesn't in business. You are also familiar with state and federal tax regulations. Meaning you don't have to hire an accountant to handle YOUR business affairs, a luxury other small business owners can ill afford.
