I've just signed up to a course that will take me to AICB. The problem is a friend of the family (who has run an accounts department for a major company) has suggested that book-keeping is a dying business, that everyone has SAGE on their computers nowadays, that clients want their accounts audited by an accountant, so AAT would have been the better route. I thought I'd ask the question in here, was I right to chose ICB, bearing in mind I will likely be working for myself? Is it really a dying business or is there work out there?
It may be a case that all of our work is now computerised but if you do not know what you are doing with the manual side of things then you quickly become one of the feeder businesses for clients to people such as the members of this site to sort out.
One needs to understand manual double entry bookkeeping in order to use a computerised package. simples.
Pure bookkeeping roles are quite difficult to find as clients expect a full service but as you go through your studies you will realise that you are being taught more thaan just pure bookkeeping.
2) Everyone uses Sage - Wrong
It's one of many computer packages. Although Sage currently has the lions share of the market the bigest retail seller is quickbooks. My practice has banned all Sage products due to their client tax type licencing. (We use VT) and new clients are actively encouraged to either change from Sage or we suggest alternate accountants for them.
Many other businesses use cloud based packages such as Xero, Kashflow, etc. (I really must learn those packages myself).
3) ICB was the wrong choice - Maybe, Maybe not
This all depends on what you are looking for. If you want to work in a permanent role then neither ICB or IAB are a lot of use to you. In many ways the bookkeeping bodies are their own worst enemy in that it is much easier to get to qualified so thousands of new hopefuls are churned out each year.
Some training companies do not help matters with promises of a recession proof industry and unattainable returns on investment.
Conversely, AAT takes longer but is more alligned with the full skillset that practice is looking for for junior grades. Once in a suitable role you would probably be looking at the AAT qualification as a stepping stone to ACCA or ACA.
4) Clients want their accounts audited by an accountant - Sort of.
Few accountants are auditors and those that are charge quite high fee's to mitigatre the risk associated with audit. Clients want their financial representation to know what they are doing which, I'm going to upset a lot of people here but many people who have distance learned AICB in a few weeks and then set up in business, or Sage users who think that you can learn a bit of software without learning manual bookkeeping very seldom fit into the category of people who know what they are doing.
Some clients will still seeek out the cheapest alternative (at least for one year!) but many want to know that their choice of bookkeeper or accountant will not come back to haunt them so yes many clients will choose to use an accountant directly or have an accountant take the work ofthe bookkeeper in order to prepare the accounts.
The above said, their are some very good bookkeepers out there who you could not tell the difference between them and a qualified accountant. Many of these find clients by word of mouth or by reference from Accountants who know them.
5) Anything that doesn't kill you makes you stronger.
Your freind can knock ICB as much as they like (I'm freinds with some chartered and dare not mention that I was once AICB... It's bad enough having the proverbial taken for having an OU qualification where they all went to "real" universities).
The reality is that the training for AICB is the equivalent of AAT level II and MICB covers a lot of the same material as AAT level III. Only once AAT get to level IV is ICB left behind.
As such, whilst your qualification may not get you to where you want to be the knowledge that you are acquiring is sound for when you move up to a different qualification... Or alternatively if you become self employed ICB may be all that you ever need.
Even though people can go self employed at AICB I would be adverse to advising them to do so unless they come to the table with a lot of existing knowledge as the knowledge gained by that stage has only scratched the surface.
6) There's no work out there - Wrong
There is work but there is a lot of competition.
A lot of AICB's just starting out compete on price. Some have lots of work but are reaping much less than minimum wage for the hours that they are needing to put in.
Have a read around the site as there are lots of hints and tips on picking up clients such as networking, social media, pricing models, etc.
Clients do tend to want a full service so they often think of bookkeepers as cheaper accountants (and accountants as expensive bookkeepers). That mentality feeds back into the above statements relating to people should not think about going self employed at AICB unless you come to the table with other experience and / or a ready client base that does not require a full service relationship.
Hope that gave you a few things to ponder in a somewhat less black and white fashion that the advice that you received from your freind.
kind regards,
Shaun.
p.s. Their most incorrect statement was the one about Sage.
__________________
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.
I would agree with what Shaun has said, simple fact is we (Training Providers) do just that, they provide a service and we can all listen to advice until we are blue in the face regardless of if from someone we know, a forum or Joe Bloggs?
We have students at both ends of the spectrum, those who are doing quite nicely thank you and those who are struggling to find work, as I always say it is not just about gaining qualifications that matter but how you apply yourself once qualified! For example networking, doing research or even gaining relevant experienc,e any provider who claims you are guaranteed work or ex amount of income by doing their course is talking utter rubbish regardless of what body they represent.
Good luck with your course and keep a positive outlook with your chosen path.
One thing that I wanted to ask after reading your response "Even though people can go self employed at AICB I would be adverse to advising them to do so unless they come to the table with a lot of existing knowledge as the knowledge gained by that stage has only scratched the surface" is at what level do you suggest I would be capable and competent at? MICB? Or higher? And what would that be?
if people waited until they knew everythng then they would never start their business as this is an industry where you are learning constantly... And when you know it they change it. Just think of the UK tax system and the software that you will use, both of which are updated each year, sometimes quite dramatically.
Conversely as hinted at in my first reply some try to run before they are properly able to walk ad that can end up with tears before bedtime (#1)
AICB is for some as far as they ever need to go as they took the qualification on the back of other knowledge and experience in order to gain MLR and other benefits of a practicing certificate through their professional body.
For people who come to this fresh then to me I do not see AICB as enough of a knowledge base to offer services directly to the public.
By MICB you will have learned a lot more and have more confidence in your knowledge base. At that stage think long and hard about whether you feel that you would be able to handle client requirements including knowing when to tell the client that you cannot give the client what they are asking for.
For example, small ltd's may expect you to prepare and file corporation tax returns, something that your ICB training will not have prepared you for.
My feeling is that if you can achieve MICB plus the payroll and Self assessment qualifications from the ICB then you are in a position to start a business.
kind regards,
Shaun.
#1 note that to get a practicing certificate in order to get MLR through the ICB you must have PII. In the small print of the PII it will say that you are only covered for work that you are qualified by qualificaton and experience to perform. Thats a get out of jail free card for the insurnace company to be able to state that they will not pay out if they feel that you performed work beyond your skill level (such as completing corporation tax returns at AICB). Without PII it would be down to you personally to put a client back into the position that they would have been in had a mistake not been made. That can prove very,(very, very) expensive.
__________________
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.
While I always respect Shauns advice I don't always agree. I was one of the people who came to bookkeeping from a different industry. I had no prior experience and undertook a course from a distance learning provider. I gained an AICB got my practice license and set up in business. I have gone from strength to strength. I gained my HNC in Accounting last year, moved to MICB and got my payroll and self assessment qualifications. I am now part way through an HND.
For me, AICB was good enough to offer a basic bookkeeping service. You will probably quickly discover that people want more. Your choice is then to become qualified to offer this, or work with someone who is. Both routes can be very effective.
One thing I agree with Shaun on (well, apart from the Sage thing) is to crawl until you can walk, then walk until you can run. I believe the reason that people get into difficulty is not that they only hold and AICB, it's the people who get their AICB and think they are chartered accountant. There's not problem offering a service if you know your limitations and stick to it until you gain more skills.
