Hi Penny
Welcome to the forum.

A couple of questions back at you - you mention doing for your husband - but is he a Limited or a Sole Trader?  Would you be doing just up to Trial Balance for Sole Traders and then passing them to an Accountant for their tax advice?

 

-- Edited by Cheshire on Friday 11th of November 2016 07:05:41 PM

Hi Penny
The thing with bookkeeping is that many out there do think its just a case of recording transactions as and when they happen and taking no account of accruals based Accounting concepts and ensuring regulations are followed, so its good that you want to learn the ropes properly.

The other issue I see a hell of a lot of are the messes created by other bookkeepers. Some with zero training who have dabbled so think they know it all, or worse those how have been trained but just never get it. I have had to clear up after a fair few. Unfortunately in any profession there are going to be those kinds of people, unless its regulated better. Im sure you have seen the very same with recruitment consultants - I know I have.

Whilst I appreciate you have seen a few duffers, I think it could also be that those were the only 'available' ones because the best have a very full client book and are working ridiculous hours as it is. But with the right attitude and the training that could be you, but the reason I ask about what you do for your husband and where you were prepared to take this to was in part about this being in the high standard of bookkeeper bracket v Accountant (a debate had on here many many times and elsewhere too).

Traditionally bookkeeping ends at Trial Balance stage, but over the last few years the lines have become blurred as some of the training bodies have tried to push the envelope. There are certainly changes afoot in this industry - massive changes and it may well see the term Accountancy fully protected.

Currently though generally speaking - sole traders generally want someone to be a one stop shop - so do the bookkeeping, prepare their accounts and complete their self assessment tax return.

Some sole traders dont really have what I would call bookkeeping requirements - its just a few bits of paper that can be assembled to create the accounts and tax return in a few hours.

Then there are the sort who either appreciate the work of a properly qualified Accountant to finish things off properly so they dont end up with a tax investigation or if they have one they get a clean bill of health (eg cover off 'basis periods' as one eg) or who have slightly more onerous or complex tax issues such as the sole trader who also has other sources of income or a limited company as well (with appropriate adjustments being done/perhaps other things in the mix) - such as your husband.

What Im saying is that most sole traders will generally speaking not just want a bookkeeper to go up to trial balance. So do you go beyond taht into the realms of Accountancy? I have no idea what the demographic is in your neck of the woods. Also - just one thing to throw in that in rural areas there are some businesses that do not seem complex on the face of it, but are indeed in need of specialist services (eg farming - we have people on here who are specialising and its not without its difficulties to find training!)

Anyway - that aside. You stated earlier you did not wish to become an Accountant so had dismissed the AAT.

But I would suggest you look at the qualification again. This because they now have a new bookkeeper qualification called the AATQB, which is available after completion of level 3.

I wouldnt suggest you do level 1 (unless you have been living under a rock, which clearly you havent). You could perhaps even miss out level 2, although I wouldnt advise it (for reasons I will cover in a minute). If you do wish to try to avoid this level - do the skills check on the AAT site, if you pass that, then just go for level 3. Re level 2 - this teaches you the fundamentals of double entry - without this, despite the best software, you will flounder at some point. Given your background you could whizz through level 2 in 3 months easily.

Bear in mind that levels 2 and 3 from the ICB are NOT equivalent to the AAT levels two and 3. Many (including some on here!) have passed level three and still had to start at level 2 with the AAT. What does that tell you about the standard of the AAT qualification. Also - if you want to have bookkeeping work passed on to you by Accountants then they will look for AAT qualifications. I was having a conversation with an Accountant only yesterday who said 'who/what are the ICB/IAB'

Note - for all those fabulous ICB people out there - I am not knocking you or how you work. As Ive said before - there are great ICB people (who would lets face it do well anywhere due to the nature of the person they are) just as much as there are some AAT qualified people who shouldnt be let loose!