Following on from my previous post asking "what does a full set of books look like" I have been mulling over the whole idea of setting up my own business and I am still a bit wary.
My current thinking is "So, I have (hopefully) passed my IAB Levels 1 and 2 and I am confident I know what I am doing with regards to making entries etc. subject to my current learning so far. Although some members have warned me off saying I need to get practical experience before starting out, others have said go for it. If I understand there are invoices and credit notes to be entered and I know where these go, I understand what the journal and days books are all for, then why do I need to get some practical experience. I suppose what I am asking is, if I absolutely understand the bookkeeping process, what else do I have to learn/know, what problems can arise/may I encounter that I cannot answer if I am doing simple bookkeeping for small businesses? What documents may turn up that will confuse me?" Bottom line is, do I know enough and what will gaining experience do for me if I am already confident in my learning so far?
I'm sure by now most people on here know my feelings about this.
If you don't do it, you'll never have the experience.
I would go for it. But tread carefully. Start by taking on small businesses who are not even VAT registered. Try ice cream vans, gardeners, window cleaners, mobile discos etc.
If you can do simple bookkeeping for these businesses that'll give you the confidence you need to move on to the next stage.
Remember this forum helps a lot of people with a lot of things, and there are others only too happy to assist. If you have the knowledge (your training) and you have the support mechanism (forums) then the experience will come.
Just make sure you do it right in terms of MLR and probably worth looking at Professional Indemnity Insurance too.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Yes, thinking of excuses not to is my problem. I have planned as much as I can I think right down to preparing draft invoices, letter of engagement, standing order form, directions on setting up new customer files etc. and I have put it all into a display book ready for when I get my first enquiry. Thanks for the confidence booster, that's just what I needed to get me started.
