it comes up repeatedly on here where ACCA students want to set up as bookkeepers whilst studying towards their qualification.
However people don't seem to be completely abreast of the rules applicable to them once they sign up as students of the ACCA.
To save people searching through the ACCA rules here is the information from regulation 8.
(2) Permitted activities of ACCA students
(a) ACCA students of the Association may not claim to be members of the Association, nor may they be, or hold themselves out to be, in public practice, or a partner, director or controller of a firm or a member of a limited liability partnership which carries on public practice. ACCA students are, however, permitted to provide basic bookkeeping services for reward, either directly to the public or for an accountant, provided that they do not refer to their studentship or potential membership of the Association. Such service may be provided by the ACCA student acting in a self-employed capacity, or as an employee. Basic book-keeping services are defined as:
(i) The recording of basic accounting data up to and including the preparation of accounting records to trial balance stage
(aa) bank accounts (bb) cash (cc) sales ledger and purchase ledger
(ii) Payroll
(aa) wages (bb) PAYE, National Insurance deductions
(iii) VAT or its equivalent.
(b) Any accountancy services, other than basic book-keeping services, can only be provided for reward by an ACCA student working for, and under the supervision of, a person who, in the opinion of Council, is suitably qualified and/or suitably experienced. The ACCA student may undertake such work either as an employee or as a self-employed person.
(c) The provision of basic book-keeping services directly to the public cannot constitute approved accountancy experience, for the purpose of regulation 3(a)(ii). However, basic book-keeping and other accountancy work undertaken under supervision may constitute approved accountancy experience.
(d) An ACCA student or affiliate who wishes to provide basic book-keeping services may obtain or seek such work by direct approaches to existing or prospective clients by mail or any other means unless prohibited by law in the country in which the student operates and subject to the requirements in paragraphs (e) and (f) below.
(e) An ACCA student may inform the public of his book-keeping services by means of advertising, or other forms of promotion, subject to the general requirement that the medium should not, in the opinion of Council, reflect adversely on the ACCA student, the Association or the accountancy profession, nor should the advertisement or promotion material, in the opinion of Council:
(i) as to content or presentation, bring the Association into disrepute or bring discredit to the ACCA student, firm or the accountancy profession;
(ii) discredit the services offered by others whether by claiming superiority for the ACCA students services or otherwise;
(iii) contain comparisons with the services offered by others;
(iv) be misleading, either directly or by implication;
(v) fall short of the requirements of the Advertising Standards Authority as to legality, decency, honesty and truthfulness.
(f) Advertisements and other promotional material may refer to the basis on which fees are calculated, or to hourly or other charging rates, provided that the information given is not misleading.
(g) Where ACCA students provide services pursuant to the above rules, they are subject to the same rules of professional conduct which apply to members who provide such services.
(h) Regulations 8(2)(a)(g) do not apply to ACCA students:
(i) who are members of one or more of the UK or Irish Institutes of Chartered Accountants, The Chartered Institute of Management Accountants or The Chartered Institute of Public Finance and Accounting and who hold practising certificates or the equivalent status from such bodies; or
(ii) who are authorised for appointment as company auditor under Section 25 of the Companies Act 1989; or
(iii) who are resident outside the United Kingdom, Jersey, Guernsey and Dependencies, the Isle of Man and the Republic of Ireland, and hold a professional accountancy qualification which confers the right to practise in their country of residence.
ACCA students falling within these categories are permitted to engage in public practice (although, in respect of category (iii), in their country of residence only) provided that they describe themselves only as members of the professional bodies to which they belong (if any) and not as students of the Association.
(3) MSER students
The provisions of regulation 8(2) apply to MSER students in respect of their permitted activities.
Hope that for good or bad this now brings clarity as to the services that may be offered for those studying towards the ACCA professional scheme qualification who are considering setting up as bookkeepers.
kind regards,
Shaun.
__________________
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.
From another post we have additional details on services that ACCA students are allowed to offer.
The following quote is taken verbetum from the post of Ginnybee. Many thanks for this Ginny.
I contacted the ACCA to confirm what I could do while I was an ACCA student (and up to getting a practising certificate - two years additional experience AFTER you qualify!! - same rules still apply until then!) and was told bookkeeping up to TB, VAT and Payroll.But, and here's the killer, I was not permitted to actually file VAT or PAYE returns for clients as that would be seen as being in public practice. I could not register as an agent with HMRC and remain a student, a violation which would result in disciplinary action!!!!! No accounts of any kind in any circumstances, which they interpreted as ALL year end accounts be they sole trader or whatever and any form of management accounts. No advice must be given in any way! All this is public practice, therefore banned!!
Ginny's original post in it's entirety and more discussion on this point can be found in this thread :
All in all the conclusion that people seem to be coming to is that if you are an ACCA student or even qualified ACCA without a practicing certificate don't even think about working in a freelance capacity as a bookkeeper as the restriction make it completely untenable.
All the best and hope these threads help fill out the gaps in peoples beliefs in the services that they are allowed to offer.
Kind regards,
Shaun.
__________________
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.
It would seem that the information is mixed, there are ACCA students with the ICB who are running a business and say they have been told by ACCA that it is fine as long as they obey the ICB rules and do not mention ACCA anywhere. Then there are others like Shuan who are told they cannot and need to resign their other membership.
The rule below does restrict you, however it does mention you can do VAT, which I would have thought would include all VAT services. It also mentions you can provide services directly to the public "ACCA students are, however, permitted to provide basic bookkeeping services for reward, either directly to the public or for an accountant" So would that not be in public practice, which Ginnybee was told you could not do?
There is a group of ICB members who are complaining about these ACCA rules, and requesting they are made clear and relaxed for members of other Institutes.
The ICB have contacted the ACCA and were told there was no such rule, however, after pushing for a firm official answer were told it was a grey area and it would be looked into.
Perhaps it is a confusion because until the last few years most accountants would have done AAT then become an accountant's assistant while studying ACCA, so this problem did not occur? Recently we are seeing more and more study ICB, setup a practice, then continue their study to accountancy whilst earning from their practice.
Perhaps the ACCA were trying to protect the public from unqualified accountants, not thinking they might be covered to offer services under another professional body?
It would seem that the information is mixed, there are ACCA students with the ICB who are running a business and say they have been told by ACCA that it is fine as long as they obey the ICB rules and do not mention ACCA anywhere. Then there are others like Shuan who are told they cannot and need to resign their other membership.
The rule below does restrict you, however it does mention you can do VAT, which I would have thought would include all VAT services. It also mentions you can provide services directly to the public "ACCA students are, however, permitted to provide basic bookkeeping services for reward, either directly to the public or for an accountant" So would that not be in public practice, which Ginnybee was told you could not do?
There is a group of ICB members who are complaining about these ACCA rules, and requesting they are made clear and relaxed for members of other Institutes.
The ICB have contacted the ACCA and were told there was no such rule, however, after pushing for a firm official answer were told it was a grey area and it would be looked into.
Perhaps it is a confusion because until the last few years most accountants would have done AAT then become an accountant's assistant while studying ACCA, so this problem did not occur? Recently we are seeing more and more study ICB, setup a practice, then continue their study to accountancy whilst earning from their practice.
Perhaps the ACCA were trying to protect the public from unqualified accountants, not thinking they might be covered to offer services under another professional body?
I find it very strange that ACCA has told ICB members they can practice under those rules as long as ACCA is not mentioned but prevent AAT members from doing the same!
Maybe someone can correct me if this assumption is not quite right, but I thought that a member of ICB was permited to produce accounts for sole traders and partnerships, do bookkeeping, VAT and PAYE. To submit VAT surely they need to register with HMRC? If ICB members can do all this and still be an ACCA student why not AAT?
The basic bookkeeping is not in qustion, ACCA students can do up to TB regardless any other qualification, BUT I was informed that having a practicing certificate from another body does NOT change the rules as far as ACCA are concerned. (I enquired regarding AAT but was told it applied to any body other than ICAEW/ICAS/CIMA/CIPFA level i.e. you must alreay be Chartered!) Why have I been given such draconian advice when others seems to go merrily along their way?
If anyone is doing any accounts for clients, including management accounts like monthly P&L and BS, then the second part of the rules applies (b) Any accountancy services, other than basic book-keeping services, can only be provided for reward by an ACCA student working for, and under the supervision of, a person who, in the opinion of Council, is suitably qualified and/or suitably experienced. The ACCA student may undertake such work either as an employee or as a self-employed person. You can undertake work if your employed or on a subcontract basis!!
The ICB have contacted the ACCA and were told there was no such rule, however, after pushing for a firm official answer were told it was a grey area and it would be looked into. It's the grey area I asked about to.........
I look forward to finding out what ICB get told by ACCA, I will contact AAT and ask them to obtain similar confirmation too. Hopefully that will clear up all of this!
Just a thought, but could the issue be that the ACCA assumes ICB only does basic bookkeeping and nothing more?
Lastly, if there are people in pracice and studying towards ACCA how are they going to get their work experience and so on signed off or do they also work in an accountancy related field?
Sorry I've gone on rather, but I'm getting very confussed! I wish there was just a clear declaration form the ACCA once and for all.
One quick further point, James said regarding the basic bookkeeping So would that not be in public practice, which Ginnybee was told you could not do?
The ACCA do not include basic bookkeeping in their definition of being in public practice.
This is the bit of the ACCA rule book I got refered to, I've highlighted what seem to be key phrases.
4. Meaning of public practice (1) Activities Subject to regulation 4(3), public practice, which may be carried on by an individual or a firm (the practitioner), means: (a) accepting an appointment as an auditor; and/or (b) signing or producing any accounts or report or certificate or tax return concerning any persons financial affairs, whether an individual sole-trader, an unincorporated body or a firm, in circumstances where reliance is likely to be placed on such accounts or report or certificate or tax return by any other person (the third party), or doing any other thing which may lead the third party to believe that the accounts or report or certificate or tax return concerning the financial affairs of such a person have been prepared, approved or reviewed by the practitioner; and/or (c) holding oneself or itself out, or allowing oneself or itself to be held out, as being available to undertake the activities referred to in (a) and (b) above (and allowing oneself to be known as a, or a firm of Chartered Certified Accountant(s), Certified Accountant(s), Chartered Accountant(s), Accountant(s) or Auditor(s) or any similar description or designation standing for any such description in the context of the practitioners business shall be regarded as an example of such a holding out); and/or (d) holding oneself out, or allowing oneself to be held out, as a sole proprietor, partner or director of a firm, or designated member or member of a limited liability partnership, where public practice is carried on. Book-keeping services, as defined in paragraphs 8(2)(a)(i) to 8(2)(a)(iii) of the Membership Regulations 1996, do not constitute public practice.
I've been looking through these forums recently because I want to set up something small as a sideline while I do my ACCA training. However, I've seen in a lot of places on here people saying that the restrictions that the ACCA put in place mean it's not really worth it. Having no knowledge of what the market is really like, I just wondered why that is - is it because the demand for the few services I would be allowed to offer is not high enough so I would have very little to do? Or is there demand for it, just not enough to make it a profitable enough in the longer run?
I'm not looking for high financial rewards, given that I'm employed by another company, I just fancy the chance to do something of my own accord and make even just a little bit of extra income on the side whilst doing something which would help me develop the skills needed to go it alone. Any thoughts would be much appreciated
