Bookkeeping Advice needed

[ghecko]

Hello all,
As the mother of 2 small children, I have found it impossible to return to work as childcare costs consume almost my whole salary!! I have decided to go it alone and because I still have one last CIMA exam to go (and because I am not ACCA), I have decided to offer a bookkeeping service locally, to other sole traders and small businesses.

Here is my problem: what are my restrictions? It is very difficult to know what my limitations are as a bookkeeper (as opposed to a management accountant!). I appreciate that I cannot sign off annual accounts but what other limitations are there? Am I legally qualified to do VAT returns, self-assessments, PAYE, etc?

Any advice that anyone can offer would be greatly appreciated. Also, if anyone knows of a good text on tax and tax savings etc that I can buy, please recommend!

 

[franbookkeeping&pay]

Hi there

The good news is that you are fine to practise as a bookkeeper 'legally'.

You don't actually need any qualifications to call yourself a bookkeeper.

As long as you are happy and confident of your ability to do the work you wish to do, then you should have no problems. Bearing in mind your qualifications so far, I don't think this will be a problem!

Good luck to you in your venture and if I can offer any advice, then please let me know.

Kind regards
Fran

 

[JonNewton]

Firstly, good luck with the new venture and the exams.
You will be fine as long as you limit yourself to the areas you indicated and that you are competent in. Be wary of allowing yourself to be put in a position where you are giving anything that could be construed as professional advice until you have qualified though, and then obtain professional indemnity insurance.

Jon Newton
CerTax Accounting (Doncaster)

 

[ghecko]

Dear all, thanks a million for your replies. The advice I have already received has been invaluable and I can't thank you all enough!

 

[Zest4.biz]

Just go for it, and keep your client base small to start with whilst you gain experience and confidence. Good luck!

 

[Neilh]

Hi

In the UK there are only 3 areas of accounting that are regulated - statutory audit, insolvency and financial services/sales (insurance ect) so there is actually a whole range of services you can offer, competence is of course an issue however. You can do PAYE, tax returns, VAT etc.

As for 'signing off acounts', this seems to be a rather mis-understood concept. For a Ltd company it is the directors of the company who are responsible for the accounts and therfore sign them off, not the accountants, although the final accounts may be prepared by an outside accountant and the auditors will sign an audit report if one was necessary. If the company doesn't require an audit and the accounts are prepared by an outside accountant, he/she/the firm will include an Accountant's Report to say they have prepared the accounts in line with the clients records. This is to indemnify themselves rather than 'certify' the accounts. The accounts themselves can be prepared by anyone. The company I work for has a few small subsidiarys, the accounts for these are prepared by ourselves and then signed by the directors before being filled with Companies House.

For non-incorporated businesses (sole traders, ordinary partnerships), it will depend on who is going to be looking at them besides the client, i.e. banks. In such circumstances banks and other agencies will accept accounts prepared by CIMA members, if they do require them to be prepared by a third party.

Since the titles aren't protected anyone can call themselves a book-keeper or an accountant so you wont have problems there. Its important to remember the CIMA practising rules however, so check them out.

Good luck
Neil