Transitioning from a CPA Firm to Freelancing: Is Offering My Services as a 1099 Bold?

I’m planning to wrap up my commitments with clients through 2024 and submit my two weeks’ notice. The primary reasons for my departure include an overwhelming workload and a feeling of being undercompensated, despite a recent 5% raise. More importantly, I feel ready to take the leap into working independently.

Having ensured all client accounts are up to date, I intend to resign on a positive note, aiming to minimize any disruption during a typically busy tax season. My plan is to give my notice during the last week of January, ensuring my presence through the completion of 1099 forms, which should make for manageable timing.

I’m contemplating the idea of offering my services as a freelancer under a 1099 contract, presenting my boss with a price sheet reflecting a higher rate than my current pay. Is this a wise move, or could it be seen as audacious? As an employer, would you find such an offer offensive?

I aim to maintain a positive relationship as I transition, ideally securing clients right from the outset. Do you have any suggestions on how to gracefully exit as an employee while potentially retaining some work on a freelance basis?

Deciding to leave your CPA firm to start your own venture is a significant step, and it’s great that you’re considering how to maintain a positive relationship with your current employer. Let’s explore whether offering your services as a 1099 contractor with a price sheet is a bold move and how you can ensure a smooth transition.

Context and Considerations

Understand Your Motivations:
You feel overworked and underpaid.
You just received a 5% raise, but you believe you can earn more independently.
You want to start on your own because you feel ready and confident.
Employer-Employee Relationship:
You are planning to leave on good terms, finishing your work through 2024.
Leaving during tax season can be challenging for the firm.
Two Weeks Notice Timing:
Planning to give notice in late January, ensuring you stay through 1099 forms process.

Is Offering Your Services Bold?

Perception: It could be perceived as bold, but not necessarily inappropriate. Offering your services can be seen as a practical solution to a transition rather than an ultimatum if approached correctly.
Professionalism: Ensure your proposal is framed professionally, emphasizing your desire to help the firm during the transition and beyond.

Employer’s Perspective

Potential Upside: They retain expertise for ongoing projects without needing to hire a new full-time employee immediately.
Possible Concerns: Your boss might feel blindsided or question your loyalty if the offer isn’t communicated thoughtfully.

Strategy to Approach the Proposal

Timing and Delivery:
Offer your proposal when you give your two-weeks notice.
Craft a thoughtful resignation letter expressing gratitude and outlining your plan to ensure a smooth transition.
Proposal Presentation:
Explain your reasons for moving on, focusing on professional growth rather than dissatisfaction.
Present your proposal as an option that benefits both parties. Highlight your understanding of the clients and the firm’s operations.
Price Sheet and Services:
Make the price sheet straightforward and competitive yet reflective of market rates.
Clearly define the services you are willing to provide as a contractor.
Be Prepared for Questions or Counteroffers:
Your employer might want to negotiate your continued role or compensation.

Additional Ideas to Salvage Work

Client Transition Plan: Offer to assist in transitioning your current clients

One response

APAdmin

26 February 2025 at 2:24 PM
Deciding to leave your CPA firm to start your own venture is a significant step, and it’s great that you’re considering how to maintain a positive relationship with your current employer. Let’s explore whether offering your services as a 1099 contractor with a price sheet is a bold move and how you can ensure a smooth transition.

Context and Considerations
1. Understand Your Motivations:
2. You feel overworked and underpaid.
3. You just received a 5% raise, but you believe you can earn more independently.
4. You want to start on your own because you feel ready and confident.
5. Employer-Employee Relationship:
6. You are planning to leave on good terms, finishing your work through 2024.
7. Leaving during tax season can be challenging for the firm.
8. Two Weeks Notice Timing:
9. Planning to give notice in late January, ensuring you stay through 1099 forms process.
Is Offering Your Services Bold?
- Perception: It could be perceived as bold, but not necessarily inappropriate. Offering your services can be seen as a practical solution to a transition rather than an ultimatum if approached correctly.
- Professionalism: Ensure your proposal is framed professionally, emphasizing your desire to help the firm during the transition and beyond.
Employer’s Perspective
- Potential Upside: They retain expertise for ongoing projects without needing to hire a new full-time employee immediately.
- Possible Concerns: Your boss might feel blindsided or question your loyalty if the offer isn’t communicated thoughtfully.
Strategy to Approach the Proposal
1. Timing and Delivery:
2. Offer your proposal when you give your two-weeks notice.
3. Craft a thoughtful resignation letter expressing gratitude and outlining your plan to ensure a smooth transition.
4. Proposal Presentation:
5. Explain your reasons for moving on, focusing on professional growth rather than dissatisfaction.
6. Present your proposal as an option that benefits both parties. Highlight your understanding of the clients and the firm’s operations.
7. Price Sheet and Services:
8. Make the price sheet straightforward and competitive yet reflective of market rates.
9. Clearly define the services you are willing to provide as a contractor.
10. Be Prepared for Questions or Counteroffers:
11. Your employer might want to negotiate your continued role or compensation.
Additional Ideas to Salvage Work
- Client Transition Plan: Offer to assist in transitioning your current clients
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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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