Practicing cert dilemma - please help

Cigi1

I hope somebody can help me with a problem I have. I am a fully qualified member of the ACCA. I was made redundant from my job in December of last year and since then have been unsuccessful in finding another job. I have a mortgage to pay etc and need to find work soon.

Various friends, neighbours and family members with small business’s have approached me to do some accounts work for them. The work varies from bookkeeping, preparing accounts and doing income tax returns. Two of the clients I will be handing the accounts over to an auditor at the end of the year. I have said to each of the clients I will do the work for a monthly set fee and I reckon the work should gross me an income of between €50,000 - €60,000 per annum. I trained in practice and then moved to industry so I am well experienced and capable of carrying out the work to a high standard.
I am anxious that everything is done above board – I have looked into insurance, I have registered for income tax and VAT etc but there is one problem I have no Practicing Certificate. I am aware that the filing of tax returns and presenting of accounts constitutes public practice. All my post qualification experience is in industry ( I have 2 years PQE ) but I was the only the qualified accountant in the company. The company was a construction business and due to downturn is no longer in business. Here are my queries:

- Can I get the managing director of this company ( which no longer exists ) to sign my application. I have asked the auditor of the company to sign the application and he is willing to do so.
- How difficult will it be for me to get a practicing cert.
My parents are willing to fund any start up costs I have which will be small as I intend to work from an office I have set up in my own home.
I am quite worried about this as I do not want to commit to do this work without following proper procedures. This seems to be the only obstacle I have and I will be gutted if I cannot commence. It is also worth saying that without the ability to produce final accounts and file tax returns it will not be worth while for the potential clients to switch accountants.

Anyone have any advice for me? All I want to do is earn a living !

SBWife

Call ACCA and ask them.

JD Dublin

Its not that simple to get a practising certificate, as from the last post there you need to contact the ACCA to sort out how you proceed.

An auditing cert is another day's work, but what you have to deal with here is that you don't have sufficient post-qualification experience to get a practising cert.

smcgiff

First of all - unless 3 years of your previous experience was under an approved ACCA training company/practice your experience will not qualify for ACCA's practicing cert - that's the bad news.

You've two options.

1. Seek to join the CPA - as far as I know they'll take you on and give you a practicing cert based on verifiable experience. So, you'll have a CPA practicing cert rather than an ACCA cert.

2. Surrender your membership of ACCA - The term and practices of accountants are not (as yet) protected. So, if you've already built up your client base then you're sorted.

However, it's good to have the back up of a professional body, so I'd advise you to go with option one. Although the CPA are a good bit more expensive for practicing certs and annual membership than ACCA.

Good luck

RT2010

Hi Guys

Said I'd throw this into this thread although its a bit different.

I am training through Industry (ACA) with a large company and will be hopefully be qualifying this time next year if I pass my finals. I have been offered some bits of work by friends etc, would be accounts preparation and tax returns etc which I would be fine to do.

After getting qualified and admitted as a member, What would be the obstacles to me carrying out this work? Obviously wouldn't have a practicing cert.

Cheers for any advice - not as familiar as I should be with the practice side of things.

SBWife

Cigi1 - Would you consider going to a small local practice and asking for a position explaining you'd be bringing a small portfolio of business along with you?

JD Dublin

RT 2010 be careful that you don't fall foul of the institute here.

I am not sure of the ACA's attitude but I know form experience that the ACCA take a dim view of their students carrying on a practise while studying, which is what you will be doing. Acting as a director of a company that is carrying on business in the area of bookkeeping / accountancy is also a no-no.

Finally on the note of 'why should the young have all the fun' consider that you may be sued by one of your clients, or at least one of them may threaten to do so - do you have Pforessional Indemnity Insurance?

RT2010

JD Dublin wrote: »

RT 2010 be careful that you don't fall foul of the institute here.

I am not sure of the ACA's attitude but I know form experience that the ACCA take a dim view of their students carrying on a practise while studying, which is what you will be doing. Acting as a director of a company that is carrying on business in the area of bookkeeping / accountancy is also a no-no.

Finally on the note of 'why should the young have all the fun' consider that you may be sued by one of your clients, or at least one of them may threaten to do so - do you have Pforessional Indemnity Insurance?

Thanks for reply.

No I wouldnt be doing any work for clients until I was fully qualified - so I wouldn't still be studying. It would be more a case of doing extra work outside of my normal 9-5 job. Its all hypothetical at the moment as I have not done any work for any clients.

Professional Indemnity Insurance would be something I would need. Would there be anything else? I know I can't get a practicing cert until I have 2 years PQE etc, would I need this to do do bits of work outside my own work?

As most people can do their own accounts and tax returns if they wish, I know I can do that much for them. I was just wondering what else I would need to provide all their accounting needs from top to bottom? These would be all small turnover clients.

Obviously I would be declaring any income the work would generate in case someone asks.

Thanks

dbran

Hi

The rules re getting a practicing cert are set out here (for ACCA anyway).

http://rulebook.accaglobal.com/lpbin21/text/print/acca_rb_2_2.html#acca_rb_2_2_d02

OP assuming that the auditor is an ACCA approved employer (ring ACCA and find out), you should be able to get him to sign off a proportion of you work.

I would be careful about going into business without a practicing cert. You spent a long time getting the qualification. Why put it at risk.

Regards


Dbran