I have stumbled accross this forum whilst attempting to read up on the skills required to do bookkeeping as an additional income A bit of background first. I have a degree in Accountancy and am CIMA part qualified. I currently have a 9-5 day job as a Management Accountant for a manufacturing company. I have decided that I would like to try an earn some additional money. I have a 3 year old boy, and am trying to save for a new home. I sort of stumbled accross the idea of bookkeeping when my hairdresser asked me if I would be interested in looking after her books whilst the current lady who looks after them was on maternity. I'd never thought about it, and declined because I wasnt fully sure what was entailed. However having done so Ive been toying with the idea, and thought it may be able to assist in additional income.
So first question, from my background is it plausible that I would be able to progress with this? And if so where do I begin?
With regards logging expenses, filing returns etc, it appears that most use Sage. I'm lucky enough that the company I work for are more than willing to allow me to use their version, but just checking which version would people advise.
Ill just add my partner has just finished her CIMA Certificate of Business Accounting, so it is something she would like to do alongside whilst she prepares to begin her CIMA journey.
Hope Ive given enough information, and look forward to any responses.
I have stumbled accross this forum whilst attempting to read up on the skills required to do bookkeeping as an additional income A bit of background first. I have a degree in Accountancy and am CIMA part qualified. I currently have a 9-5 day job as a Management Accountant for a manufacturing company. I have decided that I would like to try an earn some additional money. I have a 3 year old boy, and am trying to save for a new home. I sort of stumbled accross the idea of bookkeeping when my hairdresser asked me if I would be interested in looking after her books whilst the current lady who looks after them was on maternity. I'd never thought about it, and declined because I wasnt fully sure what was entailed. However having done so Ive been toying with the idea, and thought it may be able to assist in additional income.
So first question, from my background is it plausible that I would be able to progress with this? And if so where do I begin?
Yes, you need to be thinking more about the financial accounting side though. Much of your problems will be around what to allow as an expense, when to recognise revenue, how to break out personal from business expenditure, etc. If your bookkeeping is rusty try reading these
With regards logging expenses, filing returns etc, it appears that most use Sage. I'm lucky enough that the company I work for are more than willing to allow me to use their version, but just checking which version would people advise.
Personally I wouldn't touch Sage with a barge pole so can't help with that (I use VT Transaction+ and VT accounts). Others on the site also use Quickbooks, Xero, Moneysoft and an array of others so don't assume that Sage is the only option open to you.
Using Sage the way that you suggest would surely be breaking the Sage licence agreement?
Will CIMA allow you to file returns?
You will need to be registered for money laundering either via a professional body or directly via HMRC (not having it carries a potential unlimited fine and substantial jail time).
PII insurance is highly recomended but not compulsory.
Ill just add my partner has just finished her CIMA Certificate of Business Accounting, so it is something she would like to do alongside whilst she prepares to begin her CIMA journey.
So still not too late for her to go ACCA then, lol, just joshin. Good luck to her with her studies.
Hope Ive given enough information, and look forward to any responses.
Thanks in advance
Sam
Kind regards,
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.
Thanks for the fantastic response. There is loads that I can get my teeth stuck into.
I guess it's about reading up on as much as possible and going from there. Regarding the professional qualifications is it worth taking the exams, or is that going to make little difference to me.
I part way through AAT and am also wanting to do a "bit on the side". I'm aware of the need for HMRC registration and PII as well as not being allowed to link mention the AAT (yet) in advertising etc.
I just wanted to say that the other info above is also very useful - thanks.
__________________
Alys
Alys Stuart, Stuart Nicholls Accountancy Services, Preston, Lancashire.
Shaun, can I ask, from where I am at the moment roughly half way through my CIMA studies, is it worthwhile to do either of the bookkeeping qualifications?
Doing a bookkeeping qualification is an option. Besides the common two (IAB and ICB) there is also an AAT bookkeeping qualification (I believe that Premier Training, First Intuition, Eagle education and Ideal Schools all run the AAT certificate in bookkeeping) and also an Open University one (Course B190).
At the lower level they're all pretty similar and the higher you go the more you get into the stuff that you are already studying with CIMA (but at a simpler level).
If you are self motivated, don't need a training provider and can schedule your own self study then you will find that the basic bookkeeping books suggested above should put you in at least the same position as one of the professional courses.
HTH,
Shaun.
p.s. For others reading this, please note that this answer is specific to someone already taking a higher level accountancy qualification who knows what goes where in a set of accounts. I am not advising this approach for newstarts.
__________________
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 Shaun that's a great help. I've ordered the three books listed. Managed to get all three for less than £25, and had a £25 voucher knocking about so that was good.
With regards registering for the money laundering wig HMRC, is that the MLR 100 form?
Hi Sam
Shaun has covered everything very well, as usual, but is just wanted to cover the sage bit again....I'm a sage user but would say it's very expensive and if I was starting again I probably would get other software. Depending on the type of businesses you are thinking of looking after I would say consider the ones Shaun has suggested, eg you definitely don't need sage for sole traders....excel will do for most. Personally I'm not a fan of cloud based options. Quick books is good for most and a lot lot cheaper than sage, although so far I've only used it for charities I look after. Plus yes.....using your works Sage software will put them in breach of their licence.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Regarding a bookkeeping/accountancy qualification, if you have enough passes with CIMA, have enough experience to satisfy the experience requirements and do a Level 2 basic competency test, you could become AAT fully qualified. See this link:
