I'm 30 something and after working for the local authority for several years have decided I'd like a change. I've been looking into accountancy and book keeping and my goal is to start a small bookkeeping business catering to tradesmen / sole traders although I'll probably need to supplement this with some kind of employment at least initially so could do with a qualification that's also attractive to employers. Originally, I was going to do AAT but then I looked at ICB which seemed to be more practical and therefore maybe more appropriate for my needs? and decided to do that. However, on another forum, people were saying that FIA was a better option as I could then progress to ACCA if I chose and that the ICB qualification wasn't really well recognised by employers. Then there's this Section 8 stuff if I sign up with ACCA (which I still don't understand) and all things considered, I've got a massive headache!
Has anyone got any advice as I just don't know what to do now.
The key is to focus upon what you want and also the time that you have available to you to get there.
ACCA can take anythng up to ten years, AAT three, ICB is much quicker but as you say it's not yet widely recognised either by employers or for exemptions.
Self employment is fine but its dependant upon getting the clients and if you have a mortgage to pay that's often not the best option to launch straight into.
Its also better to gain the experience of working for others before venturing out on your own.
So, assuming that you are looking for employment, how high up the company are you looking to go?
I think that everyone would agree that the AAT qualification is a sound foundation both for employment and self employment. For some thats as far as they go and they are very happy with the qualification.
For others AAT is a stepping stone to ACCA, CIMA or even ACA.
FIA is a bit of a strange one in that there is no practice certificate option with it. You are simply picking up accounting theory basically by the first three ACCA papers being cut down into smaller, more managable chunks so if you take that option you are really looking at moving through to ACCA to make it a cost effective sollution for you.
There is no reason that you could not go straight onto the ACCA qualification if you so desired, but maybe a better option would be to do AAT and then decide what your next step is to be (and which body you decide feels the best for you).
AAT would give you exemption from the first three ACCA papers the same as FIA would but the difference is that the AAT qualification is more recognised as the bedrock qualification by employers (sure that you have seen the ads that are looking for AAT or PQ... PQ by the way is Part Qualified ACCA, CIMA or ACA).
I'm not advising against the ICB qualification which in some instances is the best option. Also, the skills that you pick up are the same as those of other qualifications (bookkeeping is bookkeeping no matter who you acquire the skills with). Its just a matter of what you want the qualification to do for you. If its to find paying employment pre self employment then I would advise AAT as the minimum start point.
If you do decide to look further at ICB then also look at IAB which has close links with the IFA (Institute of financial accountants, not Independant Financial Advisor!) and the IFA is accountancy rather than bookkeeping so a backdoor still left ajar there to get from bookkeeping into an accountancy body.
Also worth considering before taking your first step is that if you are taking it with perhaps the intention of moving to ACCA are you ready for the amount of time that it will take out of your life? Basically whilst studying you live the qualification.
Nobody but yourself can make the final decision as to which route is best for you as it often just comes down to which body you feel most comfortable with.
Good luck with whatever option you go with, I am sure that others will be along imminently with alternate suggested approaches.
kindest regards,
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.
Asking questions is great so you get different thoughts. I recommend asking in many places including discussion areas, calling the awarding bodies directly and a range of training providers. There's so much choice in the world no matter what you buy. I recommend writing a list of what you want from your training then see what ticks the boxes. Good luck! Sonya
Sorry for jumping in the discussion. But I am really interested about ICB. Is there any point doing ICB after I have completed AAT ?
1. What are the advantages of ICB ?
MLR cover (You could also get that via MAAT MIP or indeed direct from HMRC, you need to do your sums to work out whether free cover is cheaper than paid cover when you take memberships and practicing certificates into account).
Access to the ICB legal team
Support network of other bookkeepers
Being allowed to comment on the ICB website (visitors can't which can be frustrating when posts are going unanswered or they are giving each other incorrect information... Thats not saying that all of the information is incorrect, just where it is any accountants reading the site cannot correct any misconceptions).
A nice looking logo for your stationary
Additional learning opportunities
2. Did they offer Technical support for starters ?
There are resources on their site and you have access to the support mechanism of their forum
3. Ways to better market your business ? As above
Many thanks,
Adrian
I suppose one way to look at ICB is as another networking opportunity and we can never have too many of those.
The ICB Money Laundering manual is very comprehensive and well made. That in itself is worth a years membership.
The thing to ask though is if you have AAT is also having ICB cost effective as it seems a little like buying both a bus and a train ticket. Good to have options but you are only ever going to be using one of them.
So, the real question is what you will be using the qualification for. If its to find work then AAT wins. If its self employment with no intention of returning to practice then ICB will win on cost and a clear focus on bookkeeping over accountancy whereas AAT is Accountancy with firm foundations in bookkeeping.
And that latter point goes back to the earlier post in relation to rates charged being a reflection of where we pitch our services.
Right, off to read a the Mazars report on Seizing the Chance to Change (its about Audit. fun, fun fun), back later.
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.
I think also cost is very important for a beginner. I have called AAT and to be have a MIP license (for turnover in excess of £ 7000 a year) cost £ 374 per year. I do not know how much will cost the ICB membership license. And I do not know how long will take to complete ICB as it seems a very good qualification.
Once again, many thanks Shaun,
Your advice is highly appreciated.
Have a lovely day.
Adrian
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This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
really you want to be MICB so that would be £82 for a practice certificate and £96 membership so £178 plus your PII (the PII being a prerequisit of the award of a practice certificate) each year.
God, now I'm beginning to sound like an ICB sales person. Must get out of this good mood quick... I know, I'll read the KPMG paper on the future of Audit. That should cure me...
Talk later,
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.
Thanks for all your responses. I'd decided to definitely do AAT based on the replies until Shaun's last reply which swung me back to ICB! Argh! I'm definitely not going to do the FIA though, I have decided that much, and I think that ACCA is too advanced for what I want to achieve as well as being too much of a commitment in both time and money so at least I've narrowed it down a bit.
Hi I have MICB qualification with Payroll and self assessment Diplomas. I chose ICB due to their flexibility and I have no current plans on going into practice. It took me less than 6 months for all 3 levels manual and electronic bookkeeping plus the two diplomas. Many of the exams are taken at home, so great as i had a baby at the time.
For now, I will remain affiliate AAT. because of the support, lower fees and relative short time on obtaining a practice license I am very well tempted to proceed with ICB.
Many thanks Shaun, Jeanniei and Lyndsey.
May I take this opportunity to wish everyone a nice Thursday. Weekend is coming fast :)
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This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
