Should I Entertain New Accounting Job?

simplesierra on 31/08/2025 - 18:41

Hi,

I currently work in commercial accounting on a salary of $150k, with a 30 minute commute each way. The role is relatively low-stress and I enjoy it.

I have 7 years of experience in public practice. A friend has offered me a manager role at his public practice firm, with the plan that his dad retires in a year and we would then go 50/50 in equity. The firm currently makes around $600k profit per year.

Key things about the offer:

  • Manager role first, salary + commissions, then partnership after a year
  • Additional commute of 50 minutes each way (1 hour 40 minutes total daily)
  • Most of my friends and family are in the area where I’d be working, but I actually prefer the city I’m currently living in. I’m not sure if I’d like to move back.
  • I recently split up with my partner, so there aren’t relationship ties keeping me in one place right now

I like my current role and lifestyle, but this could be a chance to become a partner and significantly increase income. I’m trying to weigh the financial upside vs. commute, lifestyle changes, and potential risks. I’m at that age where I’d be looking to settle down soon.

Is this opportunity something you would take? Are there pitfalls I might be missing?

Education & Work

Comments

  • SmiTTy on 31/08/2025 - 19:03
    +5

    Yes I'd take it.
    Personally for me, even tho I might be comfortable now, i know I'd eventually get sick of not having a challenge. And if not, I'd be stuck there until retirement which is also what I wouldn't want.

    But I'd have to move… I wouldn't commute that long everyday.

    Just my personal opinion if it were me

  • djsweet on 31/08/2025 - 19:28

    Sounds like you are entertaining it. Seems like a good opportunity.

  • original15 on 31/08/2025 - 19:34

    What’s expected partnership buy in?

    • simplesierra on 31/08/2025 - 19:44

      Not as that stage yet, need to get a valuation and I assume I’d get a loan

  • AndyC1 on 31/08/2025 - 19:37

    Make sure the partnership is documented and there are penalties if the partnership does not occur. I would suggest talking to an employment lawyer to ensure you are covered in case they do not go through with the verbal agreement.

    • simplesierra on 31/08/2025 - 19:45

      Thanks what do you mean by if the partnership doesn’t occur?

      Yep I’d like to do due diligence on the business before buying in

      • AndyC1 on 31/08/2025 - 19:58

        Good luck.

  • Summoner on 31/08/2025 - 19:52
    +3

    You've got to consider what your friend is offering now and decide if that's enough for you, even if it doesn't progress any further. Nobody can guarantee what may or may not happen in the future.

    • simplesierra on 31/08/2025 - 19:54

      Thanks do you mean if the partnership doesn’t eventuate?

  • Downvoter on 31/08/2025 - 20:00

    Run the numbers for your new total commute for every single day you work in a year. Then weigh up whether you’d prefer to live to work or work to live.

    • simplesierra on 31/08/2025 - 20:04
      +2

      Thanks. The other option could be to relocate or try get WFH a few days

  • BoltThrower on 31/08/2025 - 20:05
    +5

    I prefer not to mix business with friendship, but each to their own.
    How competent is your friend? Can he fill his old man's boots? Which Succession character would they be?
    Would it fall apart without you there to carry it?

  • AustriaBargain on 31/08/2025 - 20:09
    +2

    with the plan that his dad retires in a year and we would then go 50/50 in equity

    Any chance you can get that in writing? You bust your butt for the next year with your friend having 100 equity, then they keep stringing you along year after year promising you equity but the father keeps saying it's not a good time. Then one day you're fired because you were always just an employee.

  • MS Paint on 31/08/2025 - 20:58
    +3

    Depends how old you are.

    40+ I wouldn't bother.

    Also, there's no friends in business.

  • p1 ama on 31/08/2025 - 21:21
    +6

    To be honest, I think it's potentially a good opportunity, but you are taking a risk and you need to know what the key variables are.

    Saying that the firm takes in $600k in profits p.a. is hardly enough information to make the decision from. You would need to do proper due diligence on the partnership - i.e. who are the customers, what the market outlook is, who the competitors are, what are the internal and external challenges, and obviously the valuation (i.e. buy-in).

    From my perspective, you're currently making $150k per year, presumably with the ability to make more in future if you keep progressing in your career.

    If the firm you're buying into makes a profit of $600k per year, with your 50% stake, you're essentially buying into $300k p.a. of future profits. Not sure if that already includes the salary you would pay yourself, but that doesn't seem like a great deal to me, especially if you don't see any potential future growth. You can do the NPV / IRR calculations on it, but without what you're expecting to buy-in for, it's impossible to say.

    If, assuming that the $300k p.a. profit is gross of your own salary, then it's already pretty close to the $150k per year you're paying yourself now once you take into account leave loading, superannuation…etc.

    I would also consider the challenges of working in a family business - you and your friend will go 50/50, but how will strategic decisions be made, who is responsible for what, who gets the final say when you disagree, will your friend's old man still be around in some capacity after he retires? Partnerships are difficult - I have several friends who are partners at big firms, but that's a different kettle of fish, because there are proper governance / voting structures in place and your day-to-day is more like that of an employee.

    I've personally seen partnerships and family businesses break up over the smallest of things - can't agree on a new logo, partner's (domestic) partner cheats with (business) partner, differences in business strategy, disagreements about ethics, one partner wants to relocate the office, nobody wants to clean the toilet (could have just hired a cleaner, but I guess budgets were tight)…etc., I'm not joking about any of this. Going into business, particularly a partnership, is not for everyone, and if you're an employee who's used to just "turning up and working", it'll be a big shock.

    Owning your own business is sexy until all of a sudden, you're your own finance, legal, HR, IT, procurement, building maintenance departments, and finding yourself on-hold with Telstra at 4pm on Friday because your NBN is down in the office, and on-hold with Dell at 8am on Monday because they delivered the wrong laptops to you.

    • simplesierra on 31/08/2025 - 22:05

      Thanks so much for your responses, really appreciate the perspective. I agree that further work needs to be done; I’ve only had one conversation with him so it’s very early days.

      From what he’s said, the firm has had year on year revenue growth and is currently struggling with capacity, which is a good sign. My main concerns are that they’re heavily compliance focused rather than advisory, which could become an issue with AI in the future, and whether some clients might leave once his dad retires. I also don’t think either of us are particularly technical, so we’d be relying heavily on senior managers for that expertise.

      On a personal level, I’d need to move back to a city I don’t really like (even though all my friends and family are there). I actually liked moving away and enjoy where I am now. I guess I could always try it for a year, and if it doesn’t feel right, move back, but that’s still a big lifestyle shift to weigh up alongside the career side.

    • simplesierra on 31/08/2025 - 22:08

      Also regarding the 300k being not far off the 150k, how did you arrive at that conclusion? Assume super and on costs bring it to 180k, that’s still a 120k difference isn’t it?

      • Lastchancetosee on 01/09/2025 - 12:07

        Yes, but there is a significantly higher risk and workload involved.

      • p1 ama on 02/09/2025 - 11:07
        +1

        300k being not far off the 150k, how did you arrive at that conclusion?

        1. You need to buy-in equity to get the $300k

        2. Loss of optionality, not happy with the $150k and think you can do better elsewhere? It's easy to change jobs, not easy to leave a partnership, oftentimes without significant financial loss

        3. Working hours, in the vast majority of jobs, nothing stops if you're not around. If you're a partner in your own business, the buck stops with you - your managers will call you at any time of the day, your clients will call you at any time of the day…etc.

        4. "Non-work" work - as I said before, I presume you're not your own finance, legal, HR, IT, procurement, building maintenance departments - depending on the size of your partnership, you may well be. You'll be the one calling Telstra when the internet is down, resolving disputes between employees, calling a plumber when the kitchen sink is leaking…etc., all of which I assume you are not doing now

        5. Living costs associated with being in the big city

        6. Most importantly, contracted vs. non-contracted income - as a permanent employee, your wages are contracted. Unless you are fired or the company goes bankrupt, you are legally contracted to receive that amount of money. Any issues, you go work somewhere else. In a partnership, you ride the ups and downs. You're saying it's $300k now, maybe it will be $600k in a few years, maybe it will be zero. You need to judge this.

  • OMGJL on 31/08/2025 - 23:42
    +2

    just factor in the risk of if your friend just lured you with good offer and not eventuate (i.e. just lure you in for the next year as temporary relief after his father retire)

    you might:

    1. went really well and have a much higher income and become a partner.
    2. give up your current job, and this deal didn't eventuate, you got low-paid salary for over an year whilst working for your friend, and your friendship will be totally f..ed up when you finally realize things didn't proceed the way you want…. and you might struggle to find a new job for whatever unforeseen reason (like market went even worse, etc)
  • Freezies on 01/09/2025 - 01:30
    +3

    Nobody can answer this but it really is a case of a bird in hand versus two in the bush.

    You like where you are, you enjoy your job, it's low stress and you like the city. You have enough money to live comfortably and you are at a time in your life when you may want settle down soon.

    In exchange for more money you will essentially double your commute to a city you don't like to take on a job you may not even like which will not only be very stressful but will undoubtedly put a strain on your friendship even if things are going well, as working with a friend is always a risk.

    The new job will not only take up most your time when you may be ready to settle down soon but it isn't even guaranteed as things always change. You have more to lose than your friend does. They are looking for a replacement for when their father leaves but he may be the reason things are currently doing well and his boots will need to be filled.
    Are they asking you to join out of wanting to improve your life or to make theirs easier? You are giving up everything on an unforeseen future when you currently seem to be happy and doing well.

    You could try it but you aren't guaranteed that what you have now will still be there to come back to later.

    The fact you asking us, a bunch of strangers, tells me that you realise it's a good opportunity if it actually pans out perfectly but you also realise you are risking everything on a gamble when you are currently happy. Many sacrifice that extra money for a better work life balance and happiness but sometimes you need to take a big risk for a bigger reward.

    Who knows where your life will be in one year. Who knows where the business will be in one year. Who knows where the world will be in one year, especially with AI starting to dominate all aspects of business more and more.
    You may also meet someone you want to settle down with or the father may change his mind. Personally, I feel your friend is looking out for themselves as it's better to partner with someone you know than a stranger when you have the upper hand which he does. The father may not be in the business but he will still be your friends father and will always be helping him.

    It may pan out and be the best thing you ever did or it could be the worse. Back to square one. A bird in hand is worth two in the bush.

    • simplesierra on 01/09/2025 - 06:05

      Thanks for such a thoughtful reply, you’ve summed up exactly the tension I’m feeling. On paper it’s a big opportunity, but I’m genuinely happy where I am now, both with the role and the city. The lifestyle shift, the risk to the friendship, and the uncertainty about how much of the firm’s success is tied to his dad are all weighing on me.

      He did mention that he’d rather partner with someone he knows than bring in a random person, which makes sense, but it also means I need to be clear with myself that I’m not just stepping in to make his transition easier without it also being the right move for me.

      I guess I’m trying to work out whether the upside of owning a piece of a growing firm is worth trading in my current stability, work-life balance, and personal life. You’re right, it really is a gamble, and I appreciate you spelling out the “bird in hand vs. two in the bush” perspective.

      • bbinc on 01/09/2025 - 08:56
        +1

        I wonder what the work ethic and expectations will be? You may end feeling obliged to work longer hours because you are a partner.
        I did a one hour driving commute each way for a number of years - hated it.
        You might benefit from a few appointments with an experienced careers counsellor or counselling psychologist.

      • Freezies on 01/09/2025 - 09:08

        No worries.
        It is a difficult decision as it's a life changing opportunity. It could improve your life or ruin it and whatever you choose, there may always be possible regrets but you can't think that way.

        You could pass on it and the business later becomes very successful, but that doesn't mean it would have had you been there and vice versa. You could put everything into it and end up with less than you have now. It ultimately comes down to what you want out of life and most people just want to live comfortably and be happy which is where you currently seem to be.

        Good luck!

  • Pumpkin_rrr on 01/09/2025 - 07:45
    +1

    Is this friend a real longterm friend or an acquaintance? Are you able to do up an Agreement professionally and officially?

    As for commuting, you are an Accountant, you would know the meaning of timecost. Nearly 4-hours a day is insane! Just move to somewhere closer or even better, in walking/cycling distance.

    Most importantly, would you like the change in work environment? Currently in the City, maybe Big-4. Clients are mainly city folks or corporate I'd say. But moving to suburban, you'll get more mums and dads, and tradies. Even at Partner level, at times you might have to roll up your sleeves and do some ground work….

    Actually, you can probably use this to your current employer and get a promotion?

    • simplesierra on 01/09/2025 - 15:03

      Acquaintance and yes an official agreement would be done and due diligence. Commuting would be 2 hours 40 minutes a day unless I relocated.

      • Pumpkin_rrr on 02/09/2025 - 11:16

        Good he's an acquaintance, you can do the deal with no emotion attached.
        And if the deal gone pear shape, you wouldnt have lost much :-)

        Nearly 3-hours of commute still too much for me….

        All the best to your future endeavour…

  • 82norm on 01/09/2025 - 13:14
    +2

    Just remember, the grass is not always greener on the other side. Better the devil than you don’t. Good luck, there is no wrong or right answer. Just go with your gut instincts.

    BtW. Do you have any long service leave. If so, maybe take a couple of months, take the offer and see how it works out. If it doesn’t, you still have your job.

  • Muppet Detector on 03/09/2025 - 08:09

    Friends, business and money rarely go well in the long term, often st the detriment to at least two of these.

  • Ughhh on 03/09/2025 - 08:23

    What's his management style? What does his employees think of him?

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