I'm after some advice if anyone is willing to help.
I'm AAT qualified since 2008, and have been working as an accounts assistant for 13 years (a basic role of purchase ledger and a little general ledger up to TB).
Due to a change in personal circumstances (becoming a mother of 2), I think I may have to resign from my job as childcare costs have become more then what I earn!
I am considering starting a bookkeeping service from home. Although at the moment I do not feel confident enough to go ahead. My studies were 6 years ago now, and I have been doing the same job for 10 years.
Do you think its worth completing a course like ICB or IAB to refresh my studies? And become a member to one of these bodies?
Or should I just re-read through all my old AAT books and reinstate my membership to AAT? And become a AAT MIP?
I'm not confident at the moment to get started and to be honest don't even know where to start??
Any advice anyone can offer would be greatly appreciated.
you've been working in an acconts environment so I don't think that a bookkeeping qualification is going to enhance your knowledge basde much. If you were unsure about the basics then just redo the AAT practice and revision kit for units 1-4 which covers pretty much all of AICB.
If you have the option (i.e. an accountant who will vouch for you) then moving to MIP seems to me the best option as thats the bottom rung of accountancy and perfect for servicing SME's.
As for where to start.
Thats petty much driven by clients. Will you be offering only bookkeeping services (up to trail balance) or accounting services (everything beyond trial balance).
Will you dictate the software being used or will you use what the client already uses (again, its a case of know your client in order to formulate your plans). For bookkeeping software such as Sage only makes sense if thats what the client demands otherwise guide them to something better for your bottom line (I use VT).
Will you be offering Payroll? If so, what software will you go with? (12pay and Moneysoft seem to be the favorites on here).
How will you find clients? Websites seldom work on their own. Have you thought about networking? What networking opportunities are there around you?
Some people make the mistake of thinking that networking with other bookkeepers is the way to go... That seems to me like a lot of sealions hanging around together discussing how to catch fish rather than one sealine going to where the fish are.
If you do go down that path, for networking I think that IAB have the advantage over ICB in that ICB seem to have more meetings but the IAB mettings are combined affairs with IFA giving one access to accountants rather than only other bookkeepers so there is the hope of gaining a little work and getting your face known by local accountants.
Depending on where in the country you are based you may find competition for every client fierce as in some areas there is no shortage of bookkeepers for not many potential clients.
Other area's especially South of Brum or North of the border seem to have better business to bookkeeper ratio's although thats not to say that finding sufficient clients will be easy even there.
Before you start you will need to have MLR cover in place either through your professional body or direct from HMRC.
PII is advisable. Try Arlington (link from site offers).
Sure that as soon as I post this far more will occur to me but the above should suffice for starters.
Good luck with the new venture,
kind 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.
I agree with Shaun's advice. My advice would be to re-instate your AAT membership and work towards MIP status, (contact the AAT for advice).
In respect of attaining MIP status, the AAT have two levels of MIP, registered and licensed.
Registered status is where you don't have experience signed off by an appropriate person (ideally a qualified accountant who has been supervising you), but you have to show the AAT that you have been carrying out relevant CPD and have ongoing plans for relevant CPD.
Licensed status is where you have your experience signed off, ideally by a supervising accountant, but the AAT will accept references from clients as a last resort.
Thank you so much for taking the time to respond. I really appreciate the guidance.
I think the first thing I must do is reinstate my membership to AAT and refresh my studies. I have just purchased up to date study materials and plan to begin straight away
I've contacted the AAT and they have sent me over lots of information to read through regarding attaining MIP status. I haven't had a chance to read through it all yet but from what I have read I think I have a long way to go before being able to apply for this.
I feel that I may need more experience in the bookkeeping business. Do you think its worth calling any local bookkeepers and accountants to see if I can do any voluntary work with them to gain more experience? I'm based in South East London / Kent
I probably know everything I need to but have no confidence in myself at the moment.
I think I will only offer bookkeeping service up to trial balance (until I am more confident in myself). I'm unsure about the kind of software to use. Will need to research this more too - I have never used VT... I have very little experience with payroll and payroll software.
If you are a AAT member can you join the IAB for networking purposes? Would I need to sit any of their exams?
Once again, thank you for your advice.
Regards, Natasha
-- Edited by Tinkerbella2010 on Monday 5th of May 2014 09:26:42 PM
