I'm looking into how to start up a little Bookkeeping side hustle but I am confused as to whether I am actually allowed to or not?
I completed AAT Level 4 studies a couple of years ago and moved straight on to ACCA which is what I am currently studying now.
I have just recently submitted and received my AATQB membership status (after which I will apply for the bookkeeping license) but I have seen on the ACCA website that it is prohibited to practice anything as a student member of the ACCA....
My question is..would my AAT license be redundant because of the restrictions as a student member of the ACCA?
Would I not be able to practice unless I forfeit my ACCA membership OR wait until I have completed my studies (which should take max a year) and then complete the 3 years supervised experience plus the 2 additional post membership??
Please help! :)
-- Edited by CuriousBean on Friday 24th of April 2020 11:38:48 PM
ACCA takes precedence over everything else so effectively it does not recognise your AAT qualification for the purposes of practice.
Until you have an ACCA practice certificate you are only permitted to work on a freelance basis up to trial balance... I feeel your pain. Been there done that, got the T shirt, writing the book.
Its a question that has been aasked many times on here. Just look up regulation 8.
How far are you through ACCA?
Welcome to the forum,
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.
The issue perhaps is that ACCA view this AATQB licence as going beyond TB if you have the full licence, but you may well only apply for some of the services and this might be a way of appeasing the ACCA. So maybe just consider all apart from the sole traders/partnerships element and give ACCA a call to see if the rest is do-able, Im sure it is.
Other potential issue, dependent on your background, you still need experience to be able to get the other services on that AAT licence, so are you able to fulfil the AAT requirements?
Consider also the costs involved in a 'little' side business and see if it really is worth doing, especially in this rapidly contracting market. Im not trying to put you off, just being realistic.....go with the higher qualification as in the long run will serve you better.
__________________
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 most likely will need some more experience to be able to get the AAT license. I'm 25, work as an assistant management accountant and have only been in this role for coming up to a year. Before that, I was in AP for 2 years and that is the sum total of my practical experience in accounting.
I want to get more experience in the different roles within finance and would also like to be employed in Practice but I have no desire to work up to becoming a Finance Manager or anything like that so I feel like starting up something on my own is definitely something I need to do at some point.
I will see what additional experience I will need to get to qualify for AATQB and also give ACCA a call :)
I was looking up the requirements for ACCA practice certificate and I think it was the 2 years post membership experience that made me stop and pause for a second haha.
I will look up regulation 8 now!
I am one exam away from the Professional level but feel like I have been studying for ever and would love the feeling of doing something on the side, even if it is just one or two clients for now just to feel the fruits of my labour haha.
Hi Hannah
Can you add your first name so that it appears under the signature bar on your posts? Saves people looking it up each time (Profile ---> edit signature)
You should be able to get some of the services on the AATB licence due to your background and time covering the role - certainly the computerised accountancy systems and likely the bookkeeping. What you might struggle with is the payroll and VAT side, so I would see if you can get any experience in that in your existing role as specifically the VAT side is key for a lot of clients that you might attract. That said there is one member on here who exclusively ran a portfolio of non VAT clients for a long time....until one got to the threshold, when all maner of new stuff was then thrown into the mix.
If you are serious about doing something alongside your existing job and studying, perhaps you could use your existing contacts to do some sub-contracting? Might be cheaper than the set up costs of running just one or two clients.
Regulation 8 is very restrictive and the penalties for a breach are harsh.
Good luck with whatever you decide
__________________
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
