Advice on bookkeeping qualifications

[oneplusone]

Hi everyone,

I am currently studying IAB level 2 Bookkeeping which will take me up to Trial Balance level, with the exam due in January 2008.

I want to start my own part-time bookkeeping business next year when I retire, and wonder if someone could advise me on the following:

Upon passing IAB2 (hopefully) will that be a sufficient qualification to promote myself as a self employed bookkeeper and actively seek work?

If not what further qualifications would you recommend I obtain to do this.?

I'm already getting a little nervous about talking to prospective clients as my work experience (bookkkeping wise) would be minimal. Any suggestions on how to combat this?

Finally, is there any information available anywhere about how to go about starting your own bookkeeping business (all I have found is an American book on the subject which I don't think would be too relevant to the UK)?

Thanking you in advance for your help and guidance.

 

[Dance Bookkeeping]

Hi,

I've recently started my business in bookkeeping, i am qualified up to the same level. I have found it hard to get out there, but please don't let that put you off. Talking to people about what you do is great and one of the best ways to get clients. I have found that Accountants in my area have sometimes wanted to out source some work, it gives them more time to spend on other areas that can earn them a little more money.

I've also contacted business link, they have some good information to offer, (lots of reading though).

With regards to more training, i personally have found that people have asked if i do payroll, which at the moment i am still training in. But i believe you have enough to start, you may want to do more training in other areas after.

I wish you all the best and i'm sure you will be fine.

Reagrds
Claire Dance

 

[oneplusone]

Claire,

Thanks for your reply - encouraging on the one hand and concerning on the other!!

Payroll was somthing I was considering moving into but thought that I should leave it for 12 months or so to gain some experience - what do you think?

Also would you suggest training in SAGE or a "smaller" system like Kashflow?

Glen

 

[Dance Bookkeeping]

Hi,

I'm a member of the ICB, so all my training has been done in Sage V12, to be honest when i started my training i had only heard of Sage, but really i guess it's what you feel comfortable with. One particluar accountant i have spoken to has said that Sage is the popular program but who knows!!

with regards to payroll, that was exactly what i was going to do, but found that the enquiry's i did get and from the people i spoke with, the question just kept popping up.

The other problem i found was, when i received a call from a potential client i would at some point have to explain that they would still need an accountant to do the bit's that only an accountant can do. With that in mind the client would say - ok i'll find one and call you back... but i would get no call. I feel that it would be so much better if you know of accountants, or even did some work for them and then recommend that accountant. You would probably be more likely to keep the client. (Just a thought) That's what i intend to try.

Claire.

 

[studentgems]

Our website is often looking for book-keeping students to do bits of part-time book-keeping, fully in the knowledge that they are appealing to students who are not yet fully qualified. There is a job listed at the moment which is for just a few hours a month, based at home.

The site is completely free to register on and use, so you could get in touch with the customer and get some more details.

PM me if you would like any more details

 

[PS Business Solutions]

I'm a member of the ICB, so all my training has been done in Sage V12, .

I have to be honest and say I know nothing about IAB (AAT myself) but are you saying that IAB teaches you bookkeeping on Sage as opposed to learning manual T-Accounts etc?

 

[oneplusone]

IAB (International Association of Bookkeepers) level 2 which I am just completing teaches you all the MANUAL processes used for bookeeping so definately uses "T" accounts.

They do different courses for computerised bookkeeping, manual payrolls and computerised payrolls.

I'm wondering where to go now? My exam is Jan 28th but the result wont be available until mid-April so,

Should I be spending that time learning more, like payroll or progressing with IAB level 3 (which covers Charities, Partnerships and Profit and Loss)?

Maybe I should spend the next 6-12months gaining experience before moving on to something new?

I don't know the best way to proceed so any suggestions would be most welcome.

Thanks

 

[kazd]

Hi Oneplusone,

I am really interested to read this thread, I completed Level 2 last year and gained a B for part one and an A for part two. I must confess that I was amazed that you and others are starting out having only gained Level 2. I assumed that I had to complete both level 3 course before I could start my business and I then intended to do computerised ie Sage.

However, thinking about it, I initially only intend to work up to Trial Balance which seems to be the norm for a lot of book-keepers out in the big wild world. Like you though I am very nervous about starting out. Its all very well working from the text books and doing the extra tests and mocks via your tutor but joing this big wild world is a bit scary.

If I were you and you want to start soon, I would take your exam, then start studying for payroll whilst applying to accountants and book-keepers in your area for outsource work. All a small add in the local paper wouldn't do any harm.

I did also wonder about trying to chat to a friendly local book-keeper to see if they would let you just have a look at exactly whats involved.

Good luck

Kazd

 

[PS Business Solutions]

I don't want to be a wet blanket here, and perhaps some of the Accountants who post here can give their opinions, but Accountants I have spoken to tend to view IAB as a bit of a 'low level' qualification against AAT or the ACCA Certificate.

As I said in an earlier post, I have never really looked into IAB but I did google it today and found that the level 3 is equivalent to NVQ 3. Have I got that right? It might be worth you making the enquiry with your local Accountancy practices before going too far down the IAB route, and considering whether to transfer to AAT or ACCA Certificate.

If you are not looking for Accountants recommendations, then it shouldn't matter too much. But if you are, then it's worth finding out early if they have confidence in the qualification or not otherwise you will lose business to other Bookkeepers with the qualifications they prefer

JMO

 

[oneplusone]

That's a really interesting assessment of the situation and I quite agree that following the IAB route is rather pointless if Accountants don't think too much of it.

I was led to believe by my college (where I am undertaking the level 2 course) that IAB was the upcoming qualification and every bit as good as the others, but your experience would seem to suggest otherwise.

I've checked the IAB 2ebsite and it would appear, although not 100% clear, that it is only NVQ3 level.

So, what do I do now??

Should I switch and progress with a more recognised qualification, or persevere witht he IAB?

What do you other Accountants and Bookkeepers think?

Opinions please would be most welcome.

Glen

 

[kazd]

Glen

I have asked this on another thread not much response as yet. It seems strange to me that people are saying IAB is a Mickey Mouse qualification yet is one of the most popular courses offered by colleges in most areas. Also IAB IFA and AAT have all been in talks about joining together which would also suggest that its not a Mickey Mouse qualification.

The IAB is the longest established professional body for book-keeping. It was formed in 1973, and is committed to maintaining the highest standards in book keeping. It provides distance learning courses in over 90 countries throughout the world. IAB Qualifications provided by CMIT are qualifications listed on the UK National Qualifications Framework Accreditation for CMIT distance learning courses.

However, as I said its not just a distance learning qualification but is available in colleges throughout the UK.

Seems to me there is a bit of snobbery here about qualifications and I think at the end of the day what is important is whether or not what is being taught is correct and that we do understand where the relevant debit and credits should be posted.

 

[DickM]

That's a really interesting assessment of the situation and I quite agree that following the IAB route is rather pointless if Accountants don't think too much of it.

I was led to believe by my college (where I am undertaking the level 2 course) that IAB was the upcoming qualification and every bit as good as the others, but your experience would seem to suggest otherwise.

I've checked the IAB 2ebsite and it would appear, although not 100% clear, that it is only NVQ3 level.

So, what do I do now??

Should I switch and progress with a more recognised qualification, or persevere witht he IAB?

What do you other Accountants and Bookkeepers think?

Opinions please would be most welcome.

Glen

My advice is finish what you have started (IAB). Also try and get a perm position with a big FMCG company who will support your accounting study objectives, and where you can also gain experience in payroll, receivables, accounts payable, cost & management accounts, and general ledger. I went down this route @ Ford Motor Company many years ago (started 1965), and did not obtain a recognised Accounting Qualification until 1978 (Cert, Dip IAF - ACA). My biggest regret is that I gave up my 5 year Chartered Accountant CIMA course very early in my career. Good luck with your studies, and hope you achieve all your goals.

 

[clarence]

Going against the grain here but I think experience is the key for a bookkeeper. In my experience, most clients don't care what bookkeeping qualification you have (well none of mine have ever asked me) but if you've got a knowledge of various systems, and have several other clients from which to draw experience, you should be much better placed.

Easy to say I know, but I would never have even contemplated setting up on my own if I hadn't done the job before - I gained all my experience working in various small-medium sized companies. I managed to move around within the finance dept by transferring as and when the opportunity arose, and as a result I got a great insight into most areas. I have qualifications but to be honest, those alone would not have seen me through.

My advice is to get a temporary job until your training is finished. It could just be a 3-6mth assignment, or even just move around from week to week by signing with a temp agency. You'll be amazed how just even a week working somewhere will give you experience in an area you didn't know much about. I've worked for a day sometimes, using a system I hadn't used before, and suddenly it's another string to my bow.

Of course you have to be able to pick things up quickly to do that, but in bookkeeping you will have to do that anyway - every client is different, there are so many types of business out there that might need your help so you need to be able to think on your feet.

Claire mentioned having a dedicated Accountant that you can all upon when a client needs one - that's a good idea. I have also lost clients who need an Accountant as well as a bookkeeper, so if there's someone you can recommend or work alongside then you'll do better. You can probably help each other out if you find one, as they may refer their own clients on to you.

Good luck with the studies
Wendy

 

[kazd]

Wendy

That is exactly the way I had thought to go, although I must confess I was planning on getting quite a few more qualifications before even attempting to get a job but I had planned on trying some agencies to see if I could get temp work in the book keeping field.

The thought of trying to establish myself as a book keeper with only a level 2 under my belts seem a little premature but it seems that people do it and I assume are successful, for me I would be more comfortable with more experience before I offer my services.

Kaz

 

[PS Business Solutions]

It will be interesting to see if AAT do actually merge with IAB. But I agree there is a certain amount of 'snobbery'. moreso imo between the Chartered qualifieds. Lots of debates about whether ACA is better than ACCA or CIMA etc. In a lot of cases though, it's down to what people are familiar with. I think the IAB disdain comes from the fact it seems to be available via some 'less highly esteemed' colleges. This is of course only my opinion, which is partly based on what I have heard around the networks, and again from what I'm familiar with.

I 100% agree about getting experience. I worked for 16 years in Finance, from the bottom of the ladder up to being an Accounts Manager before I started on the self employment route. When work is quiet, even now, I take temp jobs. Any experience you can get will help. When you are self employed you will be dealing with so many different business sectors/software, that the more you can learn, the easier you will find things.

And yes find yourself a good Accountant to work with. I found mine through a networking group. I refer most of my clients onto him and I know he will give them a good service. It cuts both ways, as when they are busy they refer work to me.

 

[haychloemai]

Hi everyone,

I am in a similar situation and I am currently on the lookout for an Accountant to team up with. I have a small client base at the moment and use Sage Line 50.

Hay

 

[Garry Carter]

Don't be put off doing your IAB examinations. They're a perfectly good organisation for someone who wants to be a bookkeeper. Some people don't want to be accountants. There is plenty of business out there for people to take accounts up to trial balance or draft final accounts and then hand them over to an accountant.

My own organisation, the ICB, has in excess of three thousand bookkeepers in practice, most of which work very closely with firms of accountants. We run seminars up and down the country and members are very positive about the role they play in the accounts of micro and small businesses.

It's a great career, so stick at it. You can always go on to study for ACCA later if you find that you really want to. My guess is that you'll be so busy being a bookkeeper you probably won't want to.

Good luck.

 

[Jenni384]

I know this is an old thread but just wanted to add my comments to some of the older ones:

but Accountants I have spoken to tend to view IAB as a bit of a 'low level' qualification against AAT or the ACCA Certificate.

Yes, to a point. That's because IAB is bookkeeping, AAT is Accounting, and ACCA is chartered (unless you mean their CAT, which is broadly the same as the AAT I think). AAT and CAT are far more than bookkeeping qualifications. But if I want a bookkeeper, I would expect to see bookkeeping qualifications

following the IAB route is rather pointless if Accountants don't think too much of it.

Our bookkeeper is IAB and she is utterly brilliant. Nuff said

I don't know the difference between IAB and ICB and I don't care. As long as a bookkeeper can do manual bookkeeping and understands it, that's good enough for us.

Qualifications are only good up to a point. Competence and experience are far more important.

 

[mrscoco]

Hi all, i am in the process of doing the Pitman Training Diploma in Finance. I had been in Banking for 12 years before having children and now need to get back to work and use my brain!!! I have just completed the final accounts section and all that double entry has ogled my brain.. It has been 17 years since i studied!!! lol

I am also starting out on my own and just currently do everything by spreadsheet form.
I have phoned Sage today to inquire about which package to use as i have been asked to do someone books on Sage and hope to get up to 5 clients.
Does anyone know anything about Sage Accountants' club as that is what they have advised me to use??

Thanks

 

[Jenni384]

Sage is so expensive, even with the accts club. I'd really look into other options, such as Solar Accounts. Sage really isn't the be-all and end-all these days.

 

[billie1]

Don't be put off doing your IAB examinations. They're a perfectly good organisation for someone who wants to be a bookkeeper. Some people don't want to be accountants. There is plenty of business out there for people to take accounts up to trial balance or draft final accounts and then hand them over to an accountant.

My own organisation, the ICB, has in excess of three thousand bookkeepers in practice, most of which work very closely with firms of accountants. We run seminars up and down the country and members are very positive about the role they play in the accounts of micro and small businesses.

It's a great career, so stick at it. You can always go on to study for ACCA later if you find that you really want to. My guess is that you'll be so busy being a bookkeeper you probably won't want to.

Good luck.

The IAB is more of an accounting qualification. They may not be as pouplar as other accounting bodies but they provide good qualifications through colleges and distance learning. If you look at their qualification compared to the AAT, there is little difference. I have attached a link from a distance learning college so you can have a proper look at their syllabus.

http://www.idealschools.co.uk/default.aspx?id=232&n=223&cid=44&rid=1

 

[Jenni384]

The IAB is more of an accounting qualification. They may not be as pouplar as other accounting bodies but they provide good qualifications through colleges and distance learning. If you look at their qualification compared to the AAT, there is little difference. I have attached a link from a distance learning college so you can have a proper look at their syllabus.

http://www.idealschools.co.uk/default.aspx?id=232&n=223&cid=44&rid=1

I'd agree with this, having looked at the syllabus.
IAB level 4 is accounting (Financial Statements for Ltd Co's) which is far beyond what I would call bookkeeping.

It's a shame more accountants aren't familiar with the IAB as it seems very good indeed.