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Accountancy Practice Launch Programme · Stage 2 of 10
Money & Foundations
Set the one decision that shapes your obligations, then put the accounts and cover behind it.
How long
3–5 days (PC approval can take weeks)
You’ll have
Route chosen, bank and PII sorted, client money decided
Steps
5 steps
Resources
2 resources
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01 Step 01
Step 01
Choose your route: practising certificate or unregulated
This one decision sets your AML supervisor, your PII floor, your ethics rules, and what you may call yourself.
Do it yourself
- Check whether you can get a practising certificate or licence. ICAEW looks for around two years’ post-membership experience, CPD, fit-and-proper standing and a PII undertaking; ACCA documents experience via the PCEF, taking roughly eight weeks; AAT’s Licensed Accountant route needs full MAAT membership.
- If you are eligible and doing public-practice work, apply for the certificate or licence before you take on clients, because most bodies forbid practising publicly without it.
- If you are not a member, confirm the unregulated route and plan to register for HMRC AML supervision yourself, covered in the next module.
- Book the ongoing cost in: membership and certificate fees, plus the time CPD takes each year.
Common mistake · Taking on clients while a certificate application is still pending, or assuming membership alone lets you practise. The certificate or licence is the gate, not the membership.
TimeApplication 1–2 hrs; approval up to ~8 weeks CostBody fees vary DifficultyMediumResource for this step
PDFRoute decision worksheet
Walk through the one decision that sets your obligations, and write down what your route means for AML, PII and your title. Not eligibility advice, so confirm the rules with your body or HMRC.
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02 Step 02
Step 02
Open a dedicated business bank account
Clean separation of practice money from personal money is the foundation of your own bookkeeping and your credibility.
Do it yourself
- Open a business current account in the company name. A personal account will not do for a limited company.
- Compare a traditional bank against a challenger like Starling, Tide or Mettle on fees, integrations and Direct Debit support.
- Enable a feed into your accounting software from day one.
- Set up a way to collect recurring fees: Direct Debit through GoCardless, or standing orders.
Common mistake · Running practice income through a personal account “just to start”, which muddies your first accounts and looks unprofessional.
Time1–3 days Cost£0–£15/mo DifficultyEasy -
03 Step 03
Step 03
Arrange professional indemnity insurance
It is mandatory for every professional-body member and essential for everyone else, because clients do claim over tax and accounts errors.
Do it yourself
- Confirm your minimum cover with your body. ICAEW’s floor is £2m, raised from £1.5m and phased in between September 2024 and September 2025; AAT uses a formula, the greater of around £50k or 2.5 times gross fee income. Check your body’s current rule.
- Use a broker who knows accountancy, such as PolicyBee, Marsh or Simply Business, and buy from a body-approved insurer where that is required.
- Get run-off cover explained: it covers claims that land after you stop trading.
- Declare your actual services and turnover accurately, because undisclosed work can void a claim.
Common mistake · Buying the cheapest policy below your body’s required limit, or under-declaring services and turnover so a future claim is refused.
Time~half a day CostRoughly £200–£800/yr sole practitioner (rough market figure; get quotes) DifficultyEasyResource for this step
CHECKLISTPII buying checklist
What to confirm before you bind professional indemnity cover, so the policy actually pays out. Not insurance advice; confirm limits with your body and quotes with a broker.
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04 Step 04
Step 04
Decide whether you’ll hold client money (default: no)
Holding client money triggers a heavy separate compliance regime, so most new solo practices should decide against it by default.
Do it yourself
- Understand what counts: any client funds you hold that are not immediately due to you, such as money to settle a client’s tax bill.
- If you can avoid it, where clients pay HMRC directly and you only ever take your own fees, decide not to hold client money and note it in your engagement terms.
- If you must hold it, know the regime exists: a designated client bank account, written bank confirmation of no right of set-off, reconciliation at least every five weeks, client-specific accounts for sums over £10k held beyond 30 days, interest passed to the client, and an annual client-money compliance review under ICAEW rules.
- Set your workflow so you never hold funds by accident.
Common mistake · Drifting into holding client money, for example collecting a client’s VAT payment through your own account, without the account structure and rules in place.
TimeDecision ~half a day CostFree DifficultyEasy to decide, Hard to comply -
05 Step 05
Step 05
Put continuity and alternate cover in place
If you are ill or worse, someone must be able to serve your clients. AAT requires this at seven or more clients, and it is good practice for any solo.
Do it yourself
- Find another local practitioner willing to be your alternate or continuity contact, and agree terms in writing.
- Document where your client list, logins and passwords live, in a password manager the alternate can reach in an emergency.
- Check your professional body’s specific continuity rule and its threshold.
- Tell clients you have continuity arrangements, because it reassures them.
Common mistake · Leaving it as a “later” job, when the risk is highest for a brand-new solo with no team and no cover.
Time~1 day CostFree (reciprocal) DifficultyEasy
What you’ll have after this stage
- A decision on your route: a practising certificate or licence, or unregulated
- A dedicated business bank account with a feed into your software
- Professional indemnity cover at or above your body’s required limit
- A deliberate decision on client money, and engagement terms that reflect it
- A written continuity arrangement with an alternate practitioner