I've been reading the forums and there is a lot of great advice here and some very helpful members.
I've recently qualified as a CIMA accountant and am working as a management accountant in industry, developing income statements and balance sheets, cash flow, statutory accounts, consolidations, forecasting, product costing etc.
I'm enjoying the job and the salary is fine, but I'm interested in targeting small local businesses for book-keeping services in order to supplement my main income, as well as to learn more about pratical business financial administration, as opposed to strategic multi-national accounting generally taught by CIMA.
In about a year I am likely to have a son or a daughter, so my wife will probably give up work at this point, hence me starting to think about how I'm going to maintain our lifestyle.
I'm under no illusions about the levels of income part time book-keeping from home is likely to provide. Really the main thing I'm hoping to gain from this, at least to start with, is to learn about tax returns and small business accounts from a personal development point of view.
My main questions are:
- What activities am I allowed to perform as a CIMA accountant? - What insurances and registrations must I absolutely obtain? - What insurances and registrations would I be well advised to obtain?
1) I know that you are allowed to produce accounts (which is more than ACCA's are allowed to do before getting their practicing certificates). However, I'm assuming that there will be restrictions on who you are allowed to service to that level so really you need to confirm that with CIMA directly. (suspect that you'll be allowed to service sole traders but unsure about limited companies)... Still not too late to give them a call today.
2) You must have MLR (money laundering) cover. Either directly through HMRC or via your supervisory body. Many ACCA's also join ICB or IAB to get cover by membership and also access to cheaper insurances via Trafalgar. As qualified CIMA I think that you can get FIAB by exemption and the IAB definitely seem more professional than the ICB at the moment.
3) PII (Professional Indemnity Insurance) although this is optional it's actually a pre requisit in order to get a practicing licence (and MLR) cover from the ICB or IAB. PI (Public Liability Insurance) covers you for if someone hurts themselves whilst visiting your premises. ELI (Employers Liability Insurance (normally bundled in with PI). FGI (Fidelity Guarantee Insurance) Necessary only if you are holding a clients funds. It's one that's a pre requisit for CIMA / ACCA practicing certificates but not for the bookkeeping practicing certificates.
Check what CIMA allow you to do against the PII insurance as you may find that you void your service by offering services beyond what a bookkeeper should really be doing.
Good luck with the venture and hope to hear lots from you over the coming months,
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for the informative reply. I called CIMA, who were helpful. The upshot is that I can perform any accounting duties, subject to the following provisions:
- I cannot prepare an accountant's report (i.e. compliance report) for public companies or for ltd. companies with turnover > £5.6m (and the latter is subject to the directors opting not to have their accounts audited). - Where an audit is required or desired, I cannot perform that audit or any assurance activity, nor perform any other activity that may give rise to a conflict of interest, nor can I refer to myself as an auditor. I may however examine accounts and give an opinion on a voluntary basis, as long as I do not claim to have audited them.
So, I could call myself an accountant and pick up book-keeping jobs until higher level work starts coming in. Ideally, I would have to have a practising certificate to avoid the potential for allegations of me 'punching above my weight', should I make a significant error (in reality, are all errors significant?! :p).
