I'm considering offering bookkeeping (part time only!) to supplement my full time job. I'm at AAT int (completed the first two tech exams last June), but work in industry and have for a while, so feel out of practice. Is it possible to take some work, even on min wage or voluntary, from bookkeepers/accountants to get myself going, or is this a no-no? I'm fairly confident that I could do it, but would rather get my experience back up if i can first. Has anyone got any tips on moving from industry to self-employed practice? I'm only planning on offering to TB, bank recs, cashbook, etc, for small businesses (eg taxi drivers, market traders, chippies, that sort of thing). Any advice would be great - I've been saying since before I started AAT i wanted to do some work for myself and think its about time i started doing something about it!
Im in the same position as you, im on tech stage i have 4 units left to complete. and i so badly want to start doing some self employed work. I also work in industry and have never worked in practice but i feel i could definately do this work (i wouldnt have passed my exams otherwise!!!) Im still a but confsed on the subject of a practicing license, i think you can only get one from the AAT if you become a member in practice which i think requires work experience in the services you are thinking of offering (but if i were to transfer over to ICB/IAB i dont need experience to get one!!!) I feel the AAT really sets you up to carry on to a chartered qualification, although alot of people i have heard on forums etc to have stopped at AAT and work for them selfs doing what we want to do. Im not entirely sure if we need to have a practicing license (thats wat im also confused about).. Anyway at the moment on concentrating on completing AAT as i think MAC is gonna be hard (hopefuly ill be fine, i always worry) once i have finished aat im thinking of doing ICB payroll management level 3 so i can offer this in my services too. Anyways good luck with wateva u do!!!!
Stu
-- Edited by StuartAnder on Sunday 16th of May 2010 06:40:11 PM
Between a rock and a hard place... i spoke to a recruitment agency a few weeks ago who said that if i wanted to move back into practice to gain experience i would be looking at a salary drop of £3-£5000; but i want to do this becuase i need the extra money, so i can't afford to lose it!! Plodding on with DFS in the meantime, and then only the project and options to go, maybe i'll feel more confident when i have the certificate in my hands good luck to you too!
To gain MAAT status you need a years experience to be signed off, to be a member in practice you can become one as a student, I don't think you need any experience but you are restricted, give them a call as the website tends to be confusing.
First and foremost you do not legally need any qualifications to set yourself up as a book-keeper.
If you are going do part-time self-employed book-keeping you need to get covered for MLR. There are two ways to do this:
1. Register with HMRC, or 2. Become a MIP of one of the supervisory bodies (ICB, IAB, AAT, etc)
It is also a good idea to get PII cover (cheaper if you are a member of a supervisory body).
You do also, of course, need to inform HMRC that you will be doing self-employed work and, if you expect to earn over 5075 pa you will need to pay Class 2 NI which is £2.40 per week (usually taken monthly by DD). If you expect to earn less than 5075 then you need to request an exemption from Class 2 NI.
You may find working for yourself as a book-keeper, if you have not worked with small traders before, a severe learning curve, particularly, Snowgoose with the type of client you say you will be targetting. Cash businesses are such as these are fraught with difficulties in confirming income. Working with small businesses is not like the scenarios you will have worked through for your examinations.
You might find it worth your while to volunteer, if you have the time available, with a local firm of accountants who will be able to support you whilst you learn the ropes and who may then pass on to you clients who iare too small for them to make any money out of.
