Hi all. I've been putting a lot of thought recently into the possibility of starting up as a self employed bookkeeper. I have spent a lot of time reading through any guidance I can find online and have come across this forum. After reading through numerous posts, I am certain that I have found the best place for advice.
My situation is that I believe I have all the required experience to able to do it, but don't have any qualifications to back that claim up. I have worked for seven years in an accountants, performing bookkeeping, VAT, payroll etc and have knowledge of a few accounts software packages (including IRIS & Sage). I have experience of Trial Balances, Balance Sheets, Bank Reconciliations, Fixed Assets and everything else that I think I may need.
I guess, precisely what I'm after, is for someone who has been in my situation (or one very similar) in the past, who has gone on to become a successful self employed bookkeeper, to talk me through how to go about starting up. As I have said, I have read through a lot of posts on here... so I am aware of such issues as insurance etc..... but I feel it would be a MASSIVE help to me to have someone to talk me through, for example, what software I should consider purchasing.
Many of the accountancy/bookkeeping bodies will have local network seminars and often these will be an essential part of maintaining your membership and keeping your knowledge up to date. Some seminars may be irrelevant to you but you may find face to face buddies invaluable. They are often looking for committee members. Have you decided which association to join or are you already a member of one?
As you know others on here may advise that you already qualify for some exemptions from examinations.
For software read through this thread which is taken from the perspective of someone (me) knowing that Sage is the most common software that we use but looking at the viable alternatives to the expense of Sage :
For me the setup that won through is VT transaction+, VT Accounts, Moneysoft Payroll Manager and Excel. (also got two old versions of Sage line 50 and Quickbooks quickstart with the intention of moving to Quickbooks pro if I get a client where QB is necessaary).
Iris is really out of my price range but I know that Rob who used to be a major contributor on here uses that and Sage as the drivers for his practice.
There are numerous threads on here in relation to advertising and networking and websites.
As you state, you've already read about the importance of insurance and I assume the legal obligation for MLR cover (in your case direct from HMRC).
MLR comes through pretty fast (mine from HMRC took about a week) but you might need to join something like the Bookkeepers Network in order to get access to examples of the relevant forms when going via the HMRC route. (Actually, doing that opens up cheaper PII insurance as well).
The hardest client to find is always the first and after that it can feel like rolling a snowball down a hill.
Try to compete on quality rather than price as it seems that there will always be bookkeepers willing the undercut you.
For a general discussion on rates see this thread :
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.
Tim, I am not currently a member of any association... but would hope my experience would qualify me for (at least some) exemptions. I am prepared to put some work in studying and completing exams if required. I don't feel like I'd need to take the course in full, as most of it would just be going over old ground. An ideal situation would be if I could take a quick refresher course (at minimal cost, obviously ) before taking the exams (if not exempt).
Shaun, thanks for the lengthy reply and all the links... most helpful. In my time working at an accountants, I used every 'alternative' program you mentioned... particularly Payroll Manager and Excel. I have never used QB, but from what I read.. it's not too tricky to pick up.
What, in your expert opinions, should be my next move? I presume gaining the qualifications should be my first step (as it reduces the cost of insurance etc), but how exactly should I go about that? I have read up on distance learning colleges, and to be quite honest, I don't like what I have read. They seem to be overpriced and offer very little help. Should I contact IAB direct to enquire about exemptions?
I think we can agree that as woking for yourself in this line can be a lonely profession, so to start trading immediately, there's nothing like belonging to an association. Depending on your school / FE results, you might be pleasantly surprised on the possible exemptions and it sounds like you might be ready to go straight to the final levels of either of the bookkeeping associations. The fees look reasonable to me, especially if you do not feel it necessary to attend a class.
I believe that many colleges will host an exam for you if it is one that cannot be taken online. Perhaps someone else knows more on this point.
Even if you are exempted from the lot, I would make myself do an exam or two. It will also look better if you belong to somethng if you are to approach local accountants which is also another way of acquiring a mentor.
You may have seen me suggest that Self Assessment and Payroll are very complimentary services for the businesses that you may attract. As you've already been doing one of those, it might be a good idea to pursue payroll as a quick way of being qualified for something. You didn't mention tax but you will likely be asked if you can prepare Returns, so I would make that a long-term aim.
Very often, the smallest businesses - market traders, corner shops and even larger ones will not have a computerised set of books. This is one reason why I have hung on to Money Manager. The other is cost - we've spent about £300 on it in 18 years - i'm yet to learn what it doesn't do that programs costing £30 p/a per client or £1000 p/a practice - it's a no-brainer but looks like those days are coming to an end.
Right, i'm sure I've got entirely off the point, but hope the above is some use to you.
You dont need to be a member of any professional body to hold yourself out as an accountant/bookkeeper. It may be best to become a member of some professional body in order you can put the letters after you name, to reduce insurance costs and to get back up from the body's technical support team.
Joining a professional body has to be weighed up with the fact that sometimes being a member of them can restrict you in the work you can do.
If you are confident that you can do the work that you want to do then it may be better not to join any body. All you would need is to get some PII in place and register with HMRC from a MLR viewpoint. Both of these should cost you about £250.
Thereafter you need to decide what work you want to do be it, accounts prep, bookkeeping, payroll, VAT, tax returns etc.
I until recently worked in private accounting practices for 15 years and now work in industry. At the moment i dont have any professional qualification but am in the process of setting up an accounting,bookkeeping, tax advice business for myself as before i was restricted in my contract of employment from doing so.
Already have 2 clients signed up with another 2 potentials to meet with and that is without doing any heavy advertising or setting up a website.
There is a few other ideas of how to generate new clients that i have and will see how these develop over the next 6 months.
Tim, you are correct that I didn't mention Payroll specifically, but I am experienced in that too. (worked for a year in my local council payroll department). I can also complete accounts from scratch through to filling out and sending off the tax return, either manually, or online via the tax office website and other programs such as IRIS.
I have recently conacted IAB enquiring about exemptions, and they have got back to me with a checklist that I need a chartered accountant to sign for me. I have read through, and have knowledge of everything on there (just may need to nerd up on a couple of things).
I am still in touch with the chartered accountant I worked for for 7 years, so don't feel that it will be a problem to get the exemptions.
TBH..... things seem to be going a little too well at this early stage. Patiently waiting for the complications to start arriving.
) before taking the exams (if not exempt).
