I am looking to start up my own bookkeeping business. I am currently studying the IAB Level 3. Because I lack experience in the bookkeeping field, I was wondering if anyone could help me with a few queries I have.
- What kind of day to day jobs / tasks do you do?
- What software is best for a small business with little start up money? I only know how to use sage.
- Do you need insurance? If so, what kind of insurance?
- Do you need to register with a professional body?
- Should I charge fixed rate or hourly? Which is better? What is the typical start rate that I can charge?
- What kind of assets do I need?
Thank you in advance for any advice or help given.
Hi Hong Wow - thats rather a lot of questions, requiring detailed answers, to do in one go. Suggest for future you ask each question on separate threads as you are more likely then to get a few people chipping in with views.
For now (as very busy) I will just give some brief info although there is tons of information on each of these very subjects if you have a wander round the forum. Use the search option across the blue bar at the top - for these sorts of questions you can view any of the posts, although for technical answers I would restrict your viewings to later responses in case the information has become out of date due to tax law/case law impacts. Also - if you want to double check technical info - just start a new thread, unless its perhaps one from the last few months then tag a question on the end of an existing thread.
So here goes (although be warned some of these might be questions back at you first! )
- What kind of day to day jobs / tasks do you do? Depends what kind of bookkeeper you are ie type of customers. Are you being a traditional bookkeeper and working up to Trial Balance only?
- What software is best for a small business with little start up money? I only know how to use sage. What sage do you use? Do you have access to sage for several clients? Dont be prescriptive as you can lose clients by forcing them to move to your choice of software. But for those who dont have use of software or dont care - look at VT Trans + You can run a free trial for 60 days. Might look a bit old fashioned but cheap as chips for the number of clients you can put on it and easy to learn and has support from users on here. Im a sage user, hate sage cloudy though, but also have Quickbooks and VT, but will use whatever else my clients wish me to use (as long as they pay for it) unless its really pants software and I can produce the work quicker and cheaper on other software for them.
- Do you need insurance? If so, what kind of insurance? Yes - PII cover (professional indemnity insurance). In case someone sues - you dont want to lose your house!
- Do you need to register with a professional body? No. But you must hold MLR cover.....so if you dont have it via a Professional body then you MUST register with HMRC (or face fines/imprisonment). Have a think about what professional body you are going with if you are joining one - what will get you work from Accountants in your area? (If you look around I pretty much guarantee it will be the AAT). Be careful as the body you choose will place restrictions on what you can do.
- Should I charge fixed rate or hourly? Which is better? What is the typical start rate that I can charge? There is loads on here about both pricing models, each with its own merits. I use a mix of both. BUT - as a new starter you might find it hard to introduce a fixed price for say pure bookkeeping if you dont know the right questions to ask or how to view the work and know how long it will take you. So I would suggest you start with a hourly rate for such things until you have some experience under your belt. if you are doing add ons to general bookeeping such as payroll, I would suggest a fixed price for the payroll. When you have more experience start any future newbies with fixed rates perhaps. There is no such thing as a typical rate - you will see lots of adverts for bookkeepers at the £10 per hour rate, but I personally wouldnt get out of bed for even double that. In part depends on where you are/what you are doing/added value/ a few other factors.
- What kind of assets do I need? Just a calculator. OK a PC might help if you plan to work from home rather than just fly in to clients premises.
Thank you in advance for any advice or help given.
-- Edited by Cheshire on Wednesday 28th of September 2016 02:12:09 PM
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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
- Do you need to register with a professional body?
As Joanne says, no, but you must register for MLR with HMRC, which costs £215 the first year, £115 per year thereafter.
If you are already studying IAB, I would use them as your professional body, which means you won't have to register with HMRC for MLR, as it will be covered by IAB.
For software I use VT+ Transaction, Shaun and I both use it extensively, (although Shaun has more knowledge of it's workings) and with the 60 day trial, it's worth having a play with it. It's nothing like Sage, but it's worth persisting with imo.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
There are some tips for starting up own bookkeeping business.
1. Become a Certified Bookkeeper.
2. Create a Business Plan.
3. Incorporate Your Bookkeeping Business.
4.Set Up Business Operations for Your Bookkeeping Business.
1) - not necessary!!!!! Doing an appropriate course is more relevant. Unless you are QE of course. 2) - not a bad idea. 3) - not necessary!!!! 4) - all a bit vague
You are teaching to the already converted, or worse still adding no value whatsoever.
What is your background and where are you based? Perhaps you should do the usual intro befire you start.
Plus stop dumping on very old posts (which indicates spam is heading this way!!!!!!)
Good to look back at this one though (so so so so many ungrates have had help from this forum!)
-- Edited by Cheshire on Monday 10th of September 2018 01:12:49 PM
__________________
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
There are some tips for starting up own bookkeeping business.
1. Become a Certified Bookkeeper. 2. Create a Business Plan. 3. Incorporate Your Bookkeeping Business. 4.Set Up Business Operations for Your Bookkeeping Business.
And this one came from here : https://fitsmallbusiness.com/start-a-bookkeeping-busines
It's all just pre spam BS isn't it!
Bye
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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.
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.
)
OK a PC might help if you plan to work from home rather than just fly in to clients premises. 
