The Pros & Cons of Going Independent as an Accountant

Becoming a self-employed accountant is a major career choice and one that can have a real long-term impact. For some it’s a path to prosperity and more freedom while for others it can mean being disconnected from the industry and the chance to network.

If you’re thinking of becoming a freelance accountant, then you’ve come to the right place. We’ll be discussing the benefits of self-employment, the downsides, and how to build a career in bookkeeping that’s right for you.

Can You Be a Self Employed Accountant?

Yes. Absolutely.

Plenty of accountants go self-employed every year in order to gain more control over their working hours and potentially make more money. That said, before going self-employed it’s recommended to work in the field for a bit.

This is for several reasons. First of all, wealthy accountants often get there via a good network – this is much easier to get started if you’re working for a company, meeting new people and clients day-in, day-out. Furthermore, working as part of a company will give you valuable insight and experience into how the world of accounting works.

It’s also worth mentioning that some roles – such as chartered accountants – may actually require work experience as part of the qualification and licensing.

Lastly – and perhaps most importantly – making mistakes as an accountant can be a serious problem. That’s why you’re much safer getting your early experience as part of a team where if something does go wrong, the blow won’t fall so directly on you.

With all that said, going independent can be very tempting and after a few years it may even be the better financial move.

How Much Do Self-Employed Accountants Make?

Generally speaking accountants in the UK start at around the £30-40K range and work their way up the more senior they become. For the most part the industry caps out around £60-70K but a very small handful of people can earn exponentially more in some very high level roles for major companies.

How does this map onto the freelance world? Well, on the surface it’s not too different. Good freelance accountants often earn around £40K and can earn more depending on their skill at networking and marketing. That said, if you want to make the big bucks, then being a freelancer is the first step to running your own firm.

It’s a lot of work but running a successful accountancy firm, even a small one, can see you earning a six figure salary, all while remaining independent. With a lot of hard work and a little luck, the financial benefits of independent bookkeeping can be extremely lucrative.

How To Start Freelance Bookkeeping

If you’re starting from scratch, then it’s a long road to becoming a freelance bookkeeper. You’ll have to get fully qualified and you’ll probably want to gain a couple of years experience in-industry first. All told, that’s five years minimum before you’re realistically looking at going independent.

That said, if freelancing is your long-term goal then don’t waste those five years. Spend that time really learning the industry, making some good contacts, and building a great reputation.

That hardest part of running any business – and as a freelancer you very much will be running a business – is finding and retaining clients. This is why networking and reputation are so important. People need to meet you and they need to see that you’re good at your job, willing to put the work in, and easy to work with.

On top of all that, there’s the golden rule of any networking which is that it pays to be friendly. All other things being equal, a good personal relationship with a client will go an incredibly long way towards getting you work. Not only will they come to you for their bookkeeping needs but they’re more likely to recommend you to others.

If you want to start your own firm then you’ll also need to learn all about marketing and there really is no more effective marketing than word of mouth.