becoming a part-time/self employed bookkeeper - The Book-keepers Forum (UK)

ricenyc · Newbie

becoming a part-time/self employed bookkeeper

Scotchpie · Veteran Member

Well I think your quickest route, considering you intend to go self employed, is either by taking the ICB exams or the IAB exams. It depends on where you want to take your practice.

ICB is good and a popular chioce with many, though they are strict in only allowing you to practice things you have studied. So, for example, unless you have passed their payroll course, in addition to their bookkeeping course, you cannot offer payroll services. IAB I believe are not so restrictive.

I would think, considering your experience, the best route for you is IAB to get your practice up and running quickly. You can then apply to the IAB for a members in practice certificate, covering you against money laundering regs. With the experience you already have I think 6 to 12 months to complete IAB.

So that's your practice up and running but what if you want to take things further?

Obtaining the IAB qualification allows you to be awarded exemptions from the AAT (ICB is not recognised as far as I'm aware) and then apply for the AAT members in practice certificate.

AAT is a respected and fully recognised financial accounting qualification that also includes management accounting in their exams, a knowledge of which could help you to diversify in your practice and differentiate yourself in a very crowded market.

Also if you intend to advertise to chartered accountants, who often use freelance bookkeepers, AAT is the only qualification they know about and is is regarded by many as the minimum qualification (both IAB and ICB are practically unheard of in the professional world). However, be warned, the AAT course is known to be a hard slog (hence completing IAB first). Even with IAB exemptions you're still looking at passing about 12 exams and complete a written analysis of a case study before calling yourself MAAT. So if you wanted to go down the AAT route I would think an extra 2 years on top of your IAB, but at least you'll be earning and gaining experience through your practice whilst you study.

If you have experience you could of course just register with HMRC direct to cover you regarding the money laundering regs and start your practice while choosing your path, though it is more expensive than joining one of the bookkeeping bodies.

Note: I'm still studying myself so don't take everything here as sacred. Others may have a different approach.

-- Edited by Scotchpie on Thursday 2nd of September 2010 09:08:47 AM

-- Edited by Scotchpie on Thursday 2nd of September 2010 09:13:36 AM

-- Edited by Scotchpie on Thursday 2nd of September 2010 09:21:52 AM

-- Edited by Scotchpie on Thursday 2nd of September 2010 09:23:41 AM

ICBUK · Guru

Hello,

Just a quick addition here, you may be entitled to part exemptions from ICB if you have been handing your work to an accountant, contact the ICB for more information.

With regards to ICB being more strict with the Payroll, personally I wouldn't recommend offering payroll until you had atleast done a course. When you have completed the course the ICB payroll examination is pretty flexible and is available weekly, so you might as well get qualified for it.

With regards to accountants not noticing IAB or ICB, most accountants by default will ask for AAT as that is what they did years ago, but more and more now they are also seeking ICB members. The ICB is working closely with accounting firms and banks, for example, Lloyds TSB sponsored the ICB last year, and accounting firms like Moore Stephens are using ICB members now.

Scotchpie · Veteran Member

Hi James

Can I just ask why ICB is not recognised by AAT yet IAB is? That was the only reason I advised IAB, incase ricenyc wanted to study further with AAT and offer accounting services (excluding insolvency and audits of course).

Is ICB in discussion with AAT so that ICB members can gain exemptions like IAB members?

margo · Member

Hi James,

I too have been thinking about doing the ICB but what has put me off is:

Lack of recognition .

How is ICB getting the message across to prospective employers that it is a very reputable organisation and (for certain work) a very valid qualification?

Some organisations like to put staff through exams (AAT, CAT etc) themselves and I believe that, if employers had a better understanding of the ICB they would realise its members can hit the ground running in many tasks and have potential to go further as necessary.

On the plus side (and it is a very big plus) I love the fact that you can now have on-demand exams and that being in Northern Ireland is not a huge hindrance smile

ICBUK · Guru

Hi Andrew,

Because the ICB don't follow the QCF framework.

There are many reasons for this, but mainly because the ICB feels the new unitised framework is over complicated for the students, colleges and employers, which also makes it more expensive.

There have been quite a few posts on here about the new structure, someone has quoted the IAB as saying even they don't understand their own qualification structure.

There are benefits, in that there is only one unit for a piece of work, and all bodies have to recognise it (so if you do it with IAB the AAT have to accept it, where as before they didn't). Also you can get funding if you are in a local college to do the course.

The negatives are the cost and complexity. For example, IAB payroll (so I have heard) is now 5 different qualifications, costing over £200. The old framework it was just 1 or 2 costing about £30.

The new Payroll structure is:*

Level 1 Award (2 examinations)

Level 2 Certificate (1 test, 1 project, 2 assessments, 2 examinations)

Level 2 Award in Practical Payroll (2 assessments, 1 examination)

Level 2 Award in Applied Payroll (2 assessments, 2 examinations)

Level 3 Certificate (1 test, 1 project, 2 assessments, 2 examinations)

*source: IAB website

Cost:
I cannot understand the IAB's pricing structure, but it looks like each examination is between £40 and £70 depending on if you are studying in a local college or distance learning.

The future for ICB:
The ICB is meeting with its course providers and member panels to discuss this. Currently it looks like the ICB does not need to join as it is registering more students now due to colleges swaping to ICB to avoid this new framework.

What are the thoughts of other bookkeepers on this forum?

-- Edited by ICBUK on Friday 3rd of September 2010 09:55:10 AM

ICBUK · Guru

Hi Margo,

The ICB is working closely with more and more accounting firms, bodies, banks, etc.

As mentioned below, Moore Stephens is one of the apprentice running accounting firms that has started using ICB now.

Lloyds TSB sponsored the ICB last year, this year has brought in interest from other banks.

The ICB meets with other professional bodies now at least twice a year for one thing or another.

Don't forget the ICB is young compared to the others, and the name is still growing. I would be supprised if an accountant who is part of a professional body has not heard of the ICB.

I went to my local bank 3 weeks ago to sort my personal current account, (for some reason my bank decided to give me 4 current accounts), and the lady there knew of the ICB and said she recommends new businesses use the ICB's free find a bookkeeper service.

So the name is growing rapidly, but the UK is a big place with a lot of companies. The ICB is doing its best to offer the best support, accept only the best bookkeepers, and have qualifications that match what the employer/industry needs. That is how the ICB is now the largest bookkeeping body in the world.

Mike · Veteran Member

Looking at the IAB's new qualifications framework it looks like a dogs dinner of a structure to me (ie very 'bitty') and as though it would be difficult for a prospective employer to understand what it all meant. Also, I'd say it's unclear whether you can now only do the IAB quals through a training provider.

If being QCF compliant means having your syllabus broken down into lots of little bits and pieces then I think there's a good argument for bodies like the ICB not going down the QCF route.

On the subject of the QCF itself, I could be wrong on this but isn't it one of the QUANGOs the new Government has pledged to abolish? I'm sure I read that somewhere. Could be wrong though

margo · Member

Hi James , Thanks for that.

-- Edited by margo on Friday 3rd of September 2010 12:44:52 PM

ClareB4 · Senior Member

I definitely recommend the ICB for support, easy to take qualifications and easy access exams. For those who are not used to sitting in an exam room watched by an invigilator it can be a very daunting experience and to be able to take exams as and when you want to is a great step forward. I am also a qualified credit manager with the ICM and their exam structure is still very antiquated. Nerves got the better of me in my ICM exams and, whilst I passed them, I managed to achieve 100% in my last ICB exam solely due to being relaxed!!

I researched both IAB and ICB before commencing my studies and I have completed Level 1, Level 2 Manual and am awaiting the result of my Level 2 COmputerised exam. I am already studying Level 3 with them (through Ideal Schools) and would really highly recommend the course.

Look out on here for people wanting to sell their course files as although you don't get the Ideal Schools tutor support it saves you a fortune on Ideal Schools fees!!

Just my tuppence worth :)

BackOfficeGroup · Guru

I think it really does depend on what you want from your qualification.

If you want to be a bookkeeper, then go down the route of OU, AIB, ICB. If you want to be a self employed bookkeeper, I would say the ICB is the best route, as the look of the organisation and the crest is very professional and they are registered for MLR. I did look at the AIB but could not work out what they were about when I visited their website!!

If you want to become an accountant, then go straight to AAT or ACCA etc, as you'll waste time taken bookkeeping exams with any of the orgs whilst not gaining anything worth having for your chosen route.

For me ICB has been the best around and so long as I don't have to re-sit any more exams in any of the areas I have already, then I'm happy.

P

Peasie · Expert

BackOfficeGroup wrote:
I would say the ICB is the best route, as the look of the organisation and the crest is very professional and they are registered for MLR. I did look at the AIB but could not work out what they were about when I visited their website!!

I was kind of similar - although I was put off by the name "International Association of Book-keepers". It sounds like one of those things you used to get when you'd send of £xx to the USA and they'd send back some diploma. It's not - I know. Just if you were saying it to a prospective client they might think the same as I did.

The "Institute of Certified Bookkeepers" is an international organistation as well which I suppose makes my decision even funnier. I wonder what the breakdown of members/students amongst the various countries is though.
"The Institute has more than 150,000 students and members spread across more than fifty countries, making it the largest bookkeeping institute in the world"

ICBUK · Guru

Hello,

Yes we are international, but like Microsoft, don't think we need the title.

The ICB's single largest cover is in the UK, it was started here. The other top countries in terms of membership base are India, Russia, Ukraine and Australia. New offices opened this year include Ghana and Ireland so it is quite varied.

As far as I am aware it is the leading and largest bookkeeping body in almost all the countries it is in.

Alfred · Senior Member

Hi James

So what about Candada do you have an office out there as well?

ICBUK · Guru

Not yet although we do have a few members there (less than 200) and there is quite a bit of interest from colleges over there.