Just registered there as i need help on a few matters and have been looking around this forum for the past few weeks.
I graduated with an honours degree in accountancy in 2008 and have worked in a finance office since, i am currently sitting operational level CIMA.
I want to start my own bookkeeping buiness. I am looking to do this part time, at nights after work. Maybe just starting with 5-8 clients (if i can get them).
I am looking to sit the first 3 ICB exams and then aim at doing soletrader's accounts around town.
The questions i have are: - what exactly is a bookkeepers job (in detail), where does bookkeeping stop and accountancy start? - Roughly how long does it take to do basic bookkeeping for a small company (e.g. a shop, pub etc) per month? - is 25 too young and inexperienced or do you know people that age doing the same thing? - is the first 3 ICB exams achievable in 3-4 months? how hard are they in comparison to degree/cima?
Its not a case of where one stops and the other starts, in many cases they overlap each other, but accountants can sign off accounts and deal more of the tax issues. What is bookkeeping? I would have thought you would have know this if you have done a degree and are doing CIMA? It can be as basic as data entry onto an accounts package or as complex as completing an Self Assesment form and payroll calculations.
However, I would first find out whether you can do anything if doing the CIMA exams as many organisations restrict what you can do at various stages. And it would be a waste of time doing ICB if that was the case.
But in answer to your question, if you know and understand the basics, you will be able to pass the ICB exams, but why you would want to do them is a question. 25 is not too young, I started out long before then, but its knowledge and experience that count, not age.
In regard to clients, getting 5-8 would be a very good start indeed, as if you read this forum you'll know that many people have trouble just getting 1 or 2! Also, you'd have to find clients that would understand you are only available eves/weekends, which may not suite everyone.
But, having said all that, good luck on your choice.
I didnt ask "what bookkeeping is" i asked "what do bookkeepers do?". I mean this with no knowledge in the actual practice of bookkeeping for small business, in uni and cima it is more large business and corporation accounts, tax, audit and management that you study.
For example could you charge £30 per month (a rate i have seen around this forum) to produce a monthly trail balance for a small company?
I was wondering about doing the ICB exams as i read that the 1st 3 were the minimum requirement to bookkeep for a small business. Is this not true?
sorry, must have misread your post, oops. In the real world, it could be your client giving you a bag of receipts and wants his accounts up to date. It can be as basic as entering invoices and reconciling the accounts, payroll weekly or monthly, monthly management accounts, that kind of thing.
You do not need any qualifications to be a bookkeeper or indeed an accountant. But if you are a member of another body, they may not allow you to trade until you have reached certain stages. I'm no expert, but have heard this from many threads on here.
With ICB, it all depends on where you want to go in the future, as at present ICB is not generally recognised in the corporate world and many self employed get it for its professional looking crest and MLR reasons. If you wish to move into being an accountant or work in blue chip etc, I would not go down that route.
