I have recently been made redundant from my position as an accounts assistant, and i am considering becoming a freelance book keeper. I have spent quite a bit of time on the internet researching book keeping from home, but thought it best to ask some direct questions.
Bit about myself first. My last role involved, credit control, entering sales and purchase invoices into a manual double entry book keeping system and totalling on a monthly basis. Also taking out the purchase balances to ensure the purchase figures tallied. I also processed weekly/monthly payroll up to RTI and year end. I have just completed my level 2 book keeping and i am awaiting my study books for AAT level 3.
Question 1 - Do i need to have any kind of software for my potential clients. If so is there software available that can accomodate several clients accounting information.
2 - Do i need a practising certificate.
3 - Do i have to register for money laundering.
4 - What type of insurance do i need.
5 - Is it beneficial to create a website.
6 - Am i allowed to seek self employed book keeping work whilst studying with the AAT.
7 - Am i allowed to offer any other kind of accounting service that i have experience with.
Hopefully that is all my questions covered. If there is anything else anyone thinks that may be helpful to my new business venture, it would be very much appreciated.
I'll get in first with the recommendation of VT Transaction +. Others will be along who agree later! You get 60 days free trial before you have to buy it, and it's great for people who understand double entry.
You need to register for money laundering before you can start work.
I think every business needs a web site, but it doesn't have to be very sophisticated.
I don't think you need any insurance, but it's advisable. I'll let others advise on what.
Can't help with practising certificates and the AAT, as I gave up my accounting studies so many years ago that I don't belong to anything!
I'll get in first with the recommendation of VT Transaction +. Others will be along who agree later! You get 60 days free trial before you have to buy it, and it's great for people who understand double entry.
I'll be the first to agree about VT Transactions +. Also registering with either HMRC, or AAT* for money laundering
You would also need to inform HMRC that you are self employed from the moment you start advertising/ seeking clients.
Insurance again I would say yes, it is relatively cheap but if you have no income it seems like a lot
The AAT can advise you best on what you can do but if you can, it will probably be restricted to what ever level you are at. Your insurer will also restrict you to your competancies.
If they allow you to operate under a practice licence, they will most likely be the governing body for your money laundering compliance too
Probably is a daft question i am going to ask but is VT Transactions able to accomodate multiple clients business accounts like you would have in a manual GL. A i right in thinking the software is along the same lines as Sage50 i used to use.
Most of the following is just adding to what Bill and John have already said.
VT is not really like Sage. You need to forget about things like closing periods off and nominal codes and think more in good old double entry terms. Its software written by accountants for accounts and bookkeepers rather than Sage which tries to be end user software and make itself idiot proof. Think of VT more along the lines of software that assumes that the people using it are not idiots.
You can have as many clients as you like on it without giving VT anymore money. They all get listed on the first screen, you choose the one that you want and then it loads that file.
Its been around for a long time and has a strong following both here and on Accountingweb.
You can download a two month trial from the VT website.
Worth noting though is that VT is not really software designed for processing inventory so may not be suitable for box stacker and shifter type clients.
PII insurance is very advisable as for all of the great clients there are also some litigous ones out there with morals lower than pond slime.
AAT students can practice without a practice certificate so long as they make absolutely no mention of any affiliation to the AAT. Here's something taken from an earlier post which lifted the following directliy from the AAT site :
While you are studying for your AAT qualification, you can set up in practice. However, certain restrictions apply until you become a full member:
You may not advertise in connection with the AAT. You must only undertake work within your competence and seek professional advice where necessary. You must abide by the our Guidelines on Professional Ethics. You are strongly advised to take out professional indemnity insurance.
Its worth noting that you MUST be covered for Money Laundering (MLR) but until you have a practice certificate through the AAT they would not cover you so you must be registered with HMRC for MLR before you set up in practice. (Thats really important as to not be registered carries possible jail time and unlmited fine).
Sorry that this is a rushed reply but in the middle of something.
all the best,
Shaun.
__________________
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.
can i just add, when you qualify with the AAT, HMRC will expect you to go to the AAT for MLR. So it would be a good idea to make sure that you have everything in place so when you qualify the transfer is seamless. Basically you will just need a chartered accountant (or equivaent) who knows your work to sign you off. It muct be an accountanout who knows your work professionally. It can not be your tutor.
Good luck
Nick
__________________
Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
thats not actually the qualifying but rather the moving up to MAAT isn't it as people can end up stuck in no mans land.
Isn't it that the MAAT will not cover you for MLR unless you are a MIP but HMRC will not cover you because you are fully qualified with a professional body.
Have they now sorted out that?
__________________
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.
yes was the point which i didn't explain very well. This is still the problem, although you don't need 12 months of experience anymore, it is all about quality not quantity. But you can, as Shaun points out, get stuck in no mans land.
Nick
__________________
Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
