Hi Guys, first post ever on any forum so please be gentle!
I'm Chris, I've recently completed my AAT Level 3 qual, just started a new job so waiting for that to bed in before i complete level 4, will be done within the next 6 months though I imagine, certainly this calendar year.
I am looking to supplement my earnings, and have toyed with the idea a few times about trying to bookkeep from home in my spare time, now, having always worked in industry I'm sure I have the capability to do most things up to management accounts, but not sure on the qualifications/what services to actually offer.
Eventually I would like to be chartered and am aware of ACCA regulation 8, but do the other bodies (most likely CIMA) have the same rules that would stop me practicing?
Welcome to the forum. What are you intending doing, just bookkeeeping to trial balance or beyond to self assessment? ACCA regulation will stop you doing the latter, but not the former. AAT level 3 should give you the skills to complete bookkeeping but I would suggest doing level 4 before extending beyond that, unless have are experience and confidence to complete SA. You aren't allowed to mention AAT until you get your practice certificate.
As far as I'm aware, other bodies don't have a rule as stifling as Reg 8, but I think CIMA is more geared towards industry than practice.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I thought I could do bookkeeping up to Trial Balance, but is there much of a market for this? Not mentioning AAT is fine.
I do have an acquaintance who has suggested that I could do the bookkeeping and then he could submit the SA etc as hes a seasoned accountant and as the bookkeeping would be to good order and we know eachother he would charge me a lower fee which I could include in the agreement with the client?
Hi Chris
please add your first name to the signature bar (edit profile)
Leger is John.
Who is your licence with? Do you have the AATQB LICENCE or just the AATQB qualification? If the latter - who is your MLR with?
If you are looking at doing ACCA - beyond TB = prepayments and accruals and the tax adjustments so is the Accountant going to do all that? Even putting it in your agreement (as far as Im aware) means you could be penalised by ACCA.
Whose name would go on the Accounts. Who is registered as the HMRC agent? GDPR?
Yes there is a market for up to TB - its more Limiteds than smaller sole trader type businesses and can be very lucrative.
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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
I don't have a licence, was unaware you had to have one to bookkeep. As said before I've completed AAT to level 3 (not the bookkeeping qualification) and have been working in industry for a number of years now doing management accounts and accounts assistant roles in big organisations.
I would gain MLR and GDPR before starting anything. Im assuming if I was only going up to TB i would need to register with HMRC etc?
Sorry, its a very new enquiry and having just been in industry previously I understand there is going to be a lot that I am missing at the moment.
The first year cost is £270 then £130 a year after that. You will need to apply for approval, and you will be automatically rejected if you have certain unspent convictions. http://www.compliance-matters.co.uk/wp-content/uploads/2017/10/Money-Laundering-Relevant-Offences.pdf It takes approx 45 days to get cover.
GDPR is a new set of regulations coming into force in May. (see my thread on GDPR) and surrounds keeping all data encrypted, especially when sending data to clients and 3rd parties. You'll need to gen yourself up on it.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Ah but, no need to pay all that to HMRC in this case!
Morning Joanne
Go on, you've aroused my curiosity Why doesn't he need to pay all that to HMRC to get MLR?
Cheshire wrote:
Ah but, no need to pay all that to HMRC in this case!
Morning
My curiosity too John. When I was starting up, in my niavity I thought I was going to be covered by AAT. At least I didn't have to pay the registration fee that they charge now
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Janet
They keep making the system idiot proof but then make bigger and better idiots!
Hi Chris
I asked about ethics as that gives you a lot of the information you will need about MLR, but I did also give a massive hint earlier up the thread about MLR, which Janet and John have expressed intrigue about so I will expand.
As you have completed level 3 AAT (Accountancy exams) you can now apply for the AATQB licence. Having such a licence means you cannot go beyond TB, and is restrictive in some ways, BUT given you are only doing this as a bit of an extra/hobby sort of business/on a part time basis until you are suitably fully qualified (level 4) and trained then I cannot see why you wouldnt apply for that. Its only a small top up fee in terms of the normal student rate. It doesnt preclude you from doing level 4 in any way and will not then restrict you once you have your MAAT licence (assuming you pass and apply for that licence idc). It also means that you can move into ACCA without having to dump clients (see my note about your proposal for the sole trader business - just aim for Limiteds and its much easier to meet the demands of all whilst producing a good additional living). Its cheaper than just applying for MLR with HMRC. In your circumstances I would suggest it will be easy to get a licence due to your existing background.
Insurance is not for submissions - thats agent status which you will need to have a read up on.
Insurance is so your new clients do not sue you and strip you of every single asset that you own! Believe me, its not worth it NOT to take it out.
GDPR - I dropped that in there as you need to carefully consider the data sharing with another Accountant given the changes that are due upon us! (which essentially just means more blithering cost to us Accountancy types as far as Im concerned)
New clients - there is a ton of info on this site about such so have a gander about.
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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
Hi Chris I asked about ethics as that gives you a lot of the information you will need about MLR, but I did also give a massive hint earlier up the thread about MLR, which Janet and John have expressed intrigue about so I will expand.
Objection your honour, we was misled because Chris said he was going onto level 4
A very good point there Joanne, and one I hadn't considered.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I have my AATQB membership, and have quotes for insurance for professional Indemnity and Public Liability. I am looking into which software to use etc which could be swayed by Clients that come on board early. Is there any costs or anything other than potentially marketing that I need to look into? GDPR is a must I know, any useful seminars etc that you have attended for this?
Handy hint on this site.....don't thank folk weeks after they posted and just when you are posting another question. That way you are more likely to get help from the regulars.
Also, once you have answered the above per Casu, suggest you start a different thread, one for each topic, rather than the in one, although they have all, apart from the obvious one, all been covered a million times on here.
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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
Have to admit, didn't even know there was a difference between membership and licence. I know do, thank you. As soon as I saw Casu's note I spent the rest of the day in contact with AAT to try and find out what I needed to do.
Don't mean to be blunt, but I don't think I have been rude, I have thanked people in advance for their help and have then got sidetracked with working on the actions rather than responding.
Truth be told, I got very worried about how little I knew and was daunted by posting further as I felt like each thing I mentioned was stupid.
We get no thanks, please, acknowledgement from a lot of people and even in occasion abuse, so we all now have little black books of who not to respond to. Dont want you in one of those hence my comment! In advance is always nice, but after a long post is as well, because we all do this for free in between running very busy practices, so no I didnt suggest you were rude, its just as I said, a hint for future.
No question is stupid!!!!!!
You can be in this industry for 20 years and know only a fraction of what there is to know.
Wish you had just said you didnt understand the difference re the licence/membership - couldve saved you the whole day, in a line!
So what do you have?
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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
Ahh that makes sense, I have seen a couple of posts where people post you respond and then you dont see them again either to be fair so apologies for my sensitivity haha.
I have a membership, but stupidly didnt read the disclaimer properly and am now having to give a lot of information regarding my financial history. I told them I want to get the licence as well so could be a slightly longer road that usual.
At times, having worked in industry my whole career I have found myself not actually knowing what bookkeepers generally offer and if I need any additional training etc so its definitely a bit of a wake up call.
Edited where I wrote membership but meant licence!
-- Edited by bristolbookkeeper on Monday 12th of March 2018 11:55:36 AM
Ahh that makes sense, I have seen a couple of posts where people post you respond and then you dont see them again either to be fair so apologies for my sensitivity haha.
I have a membership, but stupidly didnt read the disclaimer properly and am now having to give a lot of information regarding my financial history. I told them I want to get the membership as well so could be a slightly longer road that usual.
At times, having worked in industry my whole career I have found myself not actually knowing what bookkeepers generally offer and if I need any additional training etc so its definitely a bit of a wake up call.
Getting a licence from the AAT is pobably quicker than HMRC at the mo and cheaper. Form looks pretty hefty but isnt that bad really. Plus much easier to convert to the full MAAT licence once you have got your level 4. You have your current job working in your favour in terms of providing some evidence? Also - is your Accountant pal able to provide the reference and (if required) the contunuity of practice? The latter is only required at AATQB level if you have 6 clients or less if I recall correctly, so you might not need it to start with, but just once you get above that majic number (might not be required if you just work with Limiteds and they give you enough hours!)
Use as much spare time as possible to read up on the VAT act and VAT guidance from HMRC (bearing in mind some of the latters is pants when reading the former!) - thats a good start on the additional training as a bookkeeper.
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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
I have a couple of friends that are chartered and 1 that works in practice etc so hopefully can cover off the continuity of cover. I will see how we get on and let you guys know.
Why doesn't he need to pay all that to HMRC to get MLR?
