Transitioning from CPA Firm to Independent Practice: A Bold Move?

Considering Offering My services as a 1099 Contractor

I’m preparing to complete my client responsibilities through 2024 and then submit my two weeks’ notice. I’ve realized that my current workload is overwhelming, and despite a recent 5% raise, I feel underpaid. It’s time for me to venture out on my own. Having kept all my clients’ accounts in pristine order, I’m hopeful that my departure won’t anger my boss, even though it coincides with tax season. My plan is to give notice in the last week of January—post-1099s—so the timing should be manageable.

As I prepare to give my notice, I’m contemplating offering my services on a 1099 basis, accompanied by a price sheet that reflects a higher rate than my current salary. Is this a wise approach? How might an employer perceive such an offer? I aim to depart on a positive note and would like to secure some clients immediately. Do you have any suggestions for maintaining work connections while transitioning from being an employee?

Leaving a CPA firm to start your own practice is a significant career move and one that requires careful planning and communication. Here are some considerations and suggestions to help you navigate this transition smoothly:

Is Offering Your Services as a 1099 Contractor Bold?

Yes, presenting your boss with a price sheet and suggesting a 1099 relationship as you resign can certainly be seen as bold, but it’s not necessarily inappropriate. The key is in the execution. Here’s how you can approach this:

1. Timing and Delivery:

Timing: Since you plan to give notice in the last week of January, you’re aligning with a time that isn’t entirely disruptive, considering it’s just post-1099 deadlines. This demonstrates foresight and respect for your firm’s operational needs.
Presentation: Frame your offer as a win-win rather than an ultimatum. Emphasize your appreciation for the opportunities the firm has provided and express a genuine desire to continue supporting them through this transition.

2. Consider the Employer’s Perspective:

Your employer may have mixed feelings. On one hand, losing a valuable employee can be disappointing, especially during the busy tax season. On the other hand, continuing the relationship as a contractor provides continuity and could be seen positively.
Consider how they might perceive your rates. Be prepared to justify your pricing with market rates and your unique contributions to the firm.

Benefits to the Firm:

Making it clear to your employer that hiring you as a contractor could be advantageous can help soften the blow:
– Continuity: They retain your expertise and knowledge of existing clients’ accounts.
– Flexibility: They can contract your services only as needed, which can be more cost-effective than maintaining a full-time employee.
– Reduced Training Time: You already understand their workflows and client expectations, so there’s no learning curve.

Suggestions for a Smooth Transition:

1. Have a Transition Plan:

Clients’ Status: Document the status of each client and any ongoing projects. This shows your professionalism and concern for the firm’s operations post-departure.
Replacement Preparation: Offer to assist in training or transferring knowledge to any new hire or existing team member who will take over your responsibilities.

2. Prepare Your Price Sheet Thoughtfully:

Ensure your rates reflect the value you bring without being exorbitantly high compared to industry standards.
Offer tiered services or packages to make

One response

APAdmin

25 February 2025 at 7:45 PM
Leaving a CPA firm to start your own practice is a significant career move and one that requires careful planning and communication. Here are some considerations and suggestions to help you navigate this transition smoothly:

Is Offering Your Services as a 1099 Contractor Bold?

Yes, presenting your boss with a price sheet and suggesting a 1099 relationship as you resign can certainly be seen as bold, but it’s not necessarily inappropriate. The key is in the execution. Here’s how you can approach this:

1. Timing and Delivery:
- Timing: Since you plan to give notice in the last week of January, you’re aligning with a time that isn’t entirely disruptive, considering it’s just post-1099 deadlines. This demonstrates foresight and respect for your firm’s operational needs.
- Presentation: Frame your offer as a win-win rather than an ultimatum. Emphasize your appreciation for the opportunities the firm has provided and express a genuine desire to continue supporting them through this transition.
2. Consider the Employer’s Perspective:
- Your employer may have mixed feelings. On one hand, losing a valuable employee can be disappointing, especially during the busy tax season. On the other hand, continuing the relationship as a contractor provides continuity and could be seen positively.
- Consider how they might perceive your rates. Be prepared to justify your pricing with market rates and your unique contributions to the firm.
Benefits to the Firm:

Making it clear to your employer that hiring you as a contractor could be advantageous can help soften the blow:
– Continuity: They retain your expertise and knowledge of existing clients’ accounts.
– Flexibility: They can contract your services only as needed, which can be more cost-effective than maintaining a full-time employee.
– Reduced Training Time: You already understand their workflows and client expectations, so there’s no learning curve.

Suggestions for a Smooth Transition:

1. Have a Transition Plan:
- Clients’ Status: Document the status of each client and any ongoing projects. This shows your professionalism and concern for the firm’s operations post-departure.
- Replacement Preparation: Offer to assist in training or transferring knowledge to any new hire or existing team member who will take over your responsibilities.
2. Prepare Your Price Sheet Thoughtfully:
- Ensure your rates reflect the value you bring without being exorbitantly high compared to industry standards.
- Offer tiered services or packages to make
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Leaving CPA firm (on a good note) to go off on my own. Considering offering my boss for my services as 1099 and include my price sheet when giving my two weeks notice. Is this bold?

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