Hi guys i have finally completed my level 1 and 2 manual bookkeeping and level 2 computerised but i am unsure how i go about setting up my own business i am wanting to work from home but who do i need to inform and what insurances and things do i need
my other question is im unsure what to ask for from my clients!!!! daft i know but so far everything has been textbook and there is a massive leap from that to real life so im just nervous i suppose
also how far can i go with my clients books???
is it worth meeting with the bank for business setup or is that pointless hope you guys can help me xxxxxxxxxxxx
You must be registered for MLR either via a practicing certificate with your suppervisory body or directly with HMRC. (that one caries fines and imprisonment for getting it wrong).
If you are a member of a professional body they may demand that you have a practicing cetificate through them and they will not give you a practicing certificate until you have sufficient PII cover. (ICB use Trafalgar but you are likely to find Arlington a better option (£78 for site members for insurance underwritten by Zurich))
It is strongly advised that you have PII insurance in place regardless as to the demands of your supervisory body as if you make a mistake you can be sued to put the client back into the position that they would have been in had the mistake not been made.
Seeing the bank manager to get them on side is never a bad idea and setting up a seperate business account is a definite plus as you will learn when you have clients that do not take that simple step.
How far you can go with the books depends on your supervisory body. As a rule though I think that the ACCA's definition of a bookkeeper is about right in that bookkeeping is all activities up to trial balance plus VAT and Payroll. Anything beyond that ventures into accountants territory.
The issue that you will have is that in many cases clients do not want bookkeepers, they want cheaper accountants and expect the bookkeeper to be able to prepare accounts and tax returns.... Thats dangerous territory and better to turn those clients down than run the risk of litigation.
Can't spend too long writing a reply at the mo but sure others will fill much more in and there are hundreds of great posts out there on the site answering similar questions.
Just do a google search with whatever criteria you are interested in prefixed by site:www.book-keepers.org.uk -mobile and you would be surprised at how many subjects we've covered. Often multiple times.
looking forwards to chatting soon.
welcome to the forum,
Shaun.
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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.
Welcome to the forum and well done on gaining your qualification. You have not mentioned if you gained your qualifications through a recognised body? If so you should contact them directly about setting up a practice and Shaun is as always spot on with the advice given, it may be an idea to offer your services for free for a short while to an established Bookkeeping practice to gain some experience.
When you are registered with the ICB you should maintain your membership or risk losing your qualifications, I would give them a call and ask them to explain to you the benefits of membership if you are unsure?
