The $2 Million Mistake Accountants Make Starting a Firm | Lucas Helmke | The Work Ep. 1

Most accountants who could run their own firm never start one. Lucas Helmke started his. Five years in, he realised the way he’d been running it had costed him $2 million. Before that came the Big Four: midnight finishes, six-minute timesheets, an 80% billable target, and a partner track that sends people to overseas on a promise. He built his firm at night around a full-time job. It took a redundancy to make him go all in. In Episode 1 of The Work, Chris asks Lucas about the parts of going from employed accountant to business owner that nobody talks about. Why selling felt wrong for years. Why the hardest part of running a firm has nothing to do with accounting. And what he tells the accountants he meets now, the ones who are overworked and ready but still too scared to make the leap. DISCLAIMER: NO INCOME GUARANTEES This episode is general information only. It is not financial, tax, legal or investment advice, and it doesn’t take your personal circumstances into account. Any figures mentioned, including fees, revenue, pricing and client numbers, describe the speakers’ own experience or general observations. They are not a promise, estimate or forecast of what you will earn. Nothing in this episode guarantees any income, profit or business success, whether you start your own practice or join Evergent or any other franchise. Results vary with your skills, effort, market and circumstances, and running a business carries real financial risk. If you’re considering an Evergent franchise, make your decision only on the official disclosure document and franchise agreement, which you’ll receive before you’re asked to sign anything. Get independent legal, accounting and financial advice first. Brandatize is a marketing agency engaged by Evergent. The views expressed are those of the speakers. 00:00 Welcome to The Work 01:05 Business and family 03:43 From a country pub to accounting 06:26 Why an accountant studied tax law 09:45 Inside the Big Four 13:27 Midnight finishes and the partner track 17:06 The billable hour and the 80% target 19:11 Pricing like an employee in your own business 22:06 What business owners will actually pay for 26:05 Bookkeeping automation with Xero and Dext 29:42 Why accountants struggle to start a business 31:33 Gross margin explained 33:04 Building a firm at night around a full-time job 37:07 Redundancy: the push he needed 39:56 The hardest learning curve: selling 40:51 The $2 million mistake 44:29 Why accountants feel wrong charging what they're worth 46:33 Stop asking employees for business advice 49:20 Building the team 52:45 Why a franchise model 53:53 From one practice to a partner network 56:46 it's not 300 tax returns 58:53 The business owners who want a real accountant 01:02:47 How the partner network works 01:05:10 Referrals and collaboration 01:07:12 Too scared to make the leap 01:09:16 Why starting a small business has never been harder 01:10:57 What he'd tell himself 10 years ago Find out more about Lucas: Website: https://www.evergent.com.au/ LinkedIn:   / lucas-helmke-b86b4592