Growing up in Glasgow, Clare Donnelly CA and her sister Louise often imagined starting a business together. But neither of them could have predicted it would happen during the onset of a pandemic. Happily, rather than breaking them, the financial uncertainty that lockdown created for potential clients gave their practice a flying start. And four-and-a-half years on, the momentum and ambition of N^o Twelve Accounting remains undiminished.

“As a child, I always wanted to be a dentist,” says Donnelly. “I must have been the only kid who loved a trip to get my teeth checked. But when I realised I wasn’t very good at science or biology, I thought I’d better reconsider. I was always good with numbers and had a strong interest in business, so to become an accountant felt quite natural to me.”

After studying accountancy at City of Glasgow College and the University of the West of Scotland, Donnelly initially worked at Barclays before joining Paisley-based John M Taylor & Co in 2014. She then moved to Azets in Glasgow, where she completed her ICAS training. Donnelly was happy there but, inspired by working with family-owned businesses, felt a growing desire to start her own practice. So, at the start of 2020 she left Azets.

“Little did I know that a worldwide pandemic was looming,” says Donnelly. “However, as it transpired, the pandemic encouraged a lot of people to look at their finances as they navigated the world of furlough, bounce-back loans, SEISS [Self-Employment Income Support Scheme] etc. This meant there was a surge in demand for accountants who were prepared to be hands-on – which is very much my approach. My phone blew up with businesses needing immediate assistance and it all grew from there.”

The rapid influx of business also enabled the siblings’ childhood dream to come true. “Louise handed in her notice with her employer and we set up N^o Twelve Accounting.”

Name and number

The firm’s name springs from the number of the house where the sisters grew up, their mutual December birthdays and the 12-month periods that form accountancy’s focus. So how is the business going? “Nothing short of great!” says Donnelly. “We’ve doubled our client base year on year and had the opportunity to work with some great businesses and people.”

N^o Twelve is now a team of five and, while Louise is not a CA, she brings plenty of commercial and financial insight to the practice. This enables the firm to provide business advisory services as well as the standard CA services of payroll, accounts, VAT returns, self-assessment, book-keeping etc. “What attracts clients to us is that we’re experts in keeping everything simple,” says Donnelly. “We’re dealing predominantly with sole traders or SMEs who often find the accounts and tax landscape confusing. We break down the complexities and communicate everything in a way that is meaningful to our clients. This has helped us to build really strong working relationships.”

But there must have been challenges too? “Of course,” says Donnelly. “Starting a small business inevitably means that you have to wear all the hats. I’m good at finance, tax planning and understanding the numbers, but there’s so much more to it than that. I’ve had to learn about the sales, marketing, HR, IT and credit control, so it has been a steep learning curve that I’m sure all small practice owners can relate to.

“In recent times, dealing with HMRC has also become really challenging. Wait times to talk to them have increased and we often end up being told to put it in writing. As accountants, we market ourselves as being able to deal with HMRC on behalf of our clients, and we do a good job gathering information and submitting queries, only to regularly have to tell our clients we’re still waiting on HMRC responses. It’s increasingly frustrating, and the associated admin can take up a lot of time that’s not billable.”

Ironically, N^o Twelve Accounting is just the sort of practice that HMRC needs in the transition towards Making Tax Digital (MTD). “We’re on a mission to create a fully digital practice, and we’re not far away,” says Donnelly. “With MTD for income tax looming, it’s imperative that we get ahead to make it as seamless as possible for us and our clients. Collecting quality data has also helped us to improve efficiency and enhance tax planning for clients.”

Donnelly attended this year’s ICAS Practice Conference (Navigating The Future) and is always keen to identify areas for growth and development. “My career is very much in its infancy but I’ve already learned so much along the way,” she says. “And the most crucial thing I’ve picked up is that the learning is never done. The tax and accountancy landscape is ever evolving, with new legislation, new governments, new regulations. So, for me, learning resilience is key, especially now that we have our own practice.

“It was great to attend Navigating The Future and there were lots of topics that stood out for me, particularly AI and sustainability. It was also very reassuring to hear that the challenges we face every day are the same ones met by all firms, regardless of size.”

Outside work, Donnelly loves walking her two dogs, weekend adventures and travelling overseas. Louise had a daughter two years ago, so she is also enjoying being an auntie. And just as her wider family expands, she wants N^o Twelve to keep breaking new ground. “We want to maintain our rate of growth, welcoming new clients and new colleagues,” she says. “We’ve grown quickly in a short space of time, and it’s all been from word of mouth, which we’re really proud of. We’ll keep working hard to deliver a great service and the word will keep spreading.”

notwelve.com