Bookkeeping from home

[Faith_Hemmings]

Hi,

I have recently gained my AAT Technician Qualification and I was wondering if anyone would be able to give me some advice about doing some bookkeeping for sole traders and/or small businesses.
I am slightly worried about what level of service I could provide and what a soletrader/small business may expect?
My intentions are to begin very small, as I am working full time and continuing with my further studies. However, I would really like to bring in a little extra cash and extend my knowledge and experience.
Any advice would be greatly appreciated.

Thanks

 

[Scalloway]

Firstly have you registered as an AAT member in practice? Registering as an AAT MIP automatically regsiters you for money laundering purposes. You will need professional indemnity insurance. The AAT should be able to recommend providers who will do it for reasonable cost.

My bookkeeping is linked to VAT returns. The kind of client that I deal with gets the bookkeeping done as part of the VAT return work.

 

[E Storey]

I don't think you can register as a MIP with AAT with just the technician qualification, you need level 3 & 4 diploma.

 

[Faith_Hemmings]

Thank you.
Yes, I am currenty in the process of applying for MIP and will also purchase the Professional indemnity insurance & Public liability insurance.

 

[Faith_Hemmings]

Level 4 is the Technician level

 

[elaine@cheapaccounting]

What modules did you do at level 4? Any tax?

 

[Faith_Hemmings]

I did Business and Personal Tax but havn't used them in the working environment yet so do not feel so confident at the moment...

 

[elaine@cheapaccounting]

I did Business and Personal Tax but havn't used them in the working environment yet so do not feel so confident at the moment...

Always the rub - how to get the experience.


A wee plug – that is why we put together our Apprentice Scheme ..

http://www.cheapaccounting.co.uk/accountantsjoinus7.php

 

[Faith_Hemmings]

Thanks, that's a great option, however could not afford the fees. I am reliant on my company funding my study for now!

Thanks anyway!

 

[Figurate]

Perhaps start off with bookkeeping and VAT. Also try contacting local accountants and seeing if they will refer work to you, if you can reciprocate by referring year-end/tax to them.
You could also offer to sub-contract.

Get the word around, by talking to friends & family, putting adverts in local business directories, consider getting online (eg website, linked-in, twitter), and get your name out there, networking breakfasts/lunches etc... choose whatever suits you and your circumstances best, as not everything works for everybody

It will start off slow, but you can use this time to sort out your own admin (engagement letters, business cards, MiP requirements etc... )

Good luck with your it all and with your continuining studies.

 

[elaine@cheapaccounting]

Oh so you are doing this in the evenings / weekends?

Good luck - that is a real tough challenge ...

Starting an Accountancy Practice - Are there enough hours in the day?

http://www.cheapaccounting.co.uk/bl...practice-–-are-there-enough-hours-in-the-day/

 

[Faith_Hemmings]

My plan is to just take on something very small to maintain whilst studying so that I can gain experience and then develop this one I am qualified.

Thanks for all of the advice!
I think my main worry is what service I could confidently provide. Having not done any bookkeeping in practice, my knowledge should be fine but I lack experience.

Is anybody able to give me an idea of a basic service to provide? Ie would monthly transactions and bank recs be something that a soletrader/ small business may require? I would like to offer VAT returns too, but worry about getting myself in too deep!

Thanks again!

 

[John Heath Insurance Brokers]

Hi Faith,

A little plug for our site - we can assist with accountants professional indemnity and also liability insurance. Give me a call if you prefer to speak to a human being!

 

[Remote Resources]

Always the rub - how to get the experience.


A wee plug – that is why we put together our Apprentice Scheme ..

http://www.cheapaccounting.co.uk/accountantsjoinus7.php

The initial fee for joining us is the same and you would join under the Mentoring Programme being £6,999 plus vat

Oh my word - my eyes nearly fell out of their sockets when I saw this! The the ongoing fees! I thought you paid the apprentice, not the other way round!

No offence intended, just hugely shocked.

 

[elaine@cheapaccounting]

The initial fee for joining us is the same and you would join under the Mentoring Programme being £6,999 plus vat

Oh my word - my eyes nearly fell out of their sockets when I saw this! The the ongoing fees! I thought you paid the apprentice, not the other way round!

No offence intended, just hugely shocked.

They are setting up an accountancy business building capital value for the future.


With respect – have a full read of what they get. It’s considered value for money by ALL that have already taken this up. They all act as reference sites.



Have you looked at comparisons in this market place e.g. one at £30k plus.

 

[Strontium Dog]

Oh my word - my eyes nearly fell out of their sockets when I saw this! The the ongoing fees! I thought you paid the apprentice, not the other way round!

No offence intended, just hugely shocked.

Have you bought any of the franchise mags and seen how much your average white collar franchise costs?

 

[Remote Resources]

Have you bought any of the franchise mags and seen how much your average white collar franchise costs?

Er, no. What does that have to do with anything. I am aware, however, of what a franchise would cost.

However, I didn't see any mention of franchises - only apprenticeships, which in my limited experience usually pay you.

However, having gone back to the site to have a look at what you get for your cash, it's pretty good value. It doesn't fit within the normal definition of an apprenticeship though - it's probably a bit of a misnomer.

 

[elaine@cheapaccounting]

It is apprentice scheme for accountants who want to start their own practice (it says that in line 3) - hence why I posted it for the OP as it fitted the bill .


I think I do provide full visibility of what is involved on the site – I guess that it is always best to read the details before making comment.

 

[Remote Resources]

Never mind. I'll just shut the door quietly behind me on my way out :redface:

 

[elaine@cheapaccounting]

Never mind. I'll just shut the door quietly behind me on my way out

 

[Faith_Hemmings]

My plan is to just take on something very small to maintain whilst studying so that I can gain experience and then develop this one I am qualified.

Thanks for all of the advice!
I think my main worry is what service I could confidently provide. Having not done any bookkeeping in practice, my knowledge should be fine but I lack experience.

Is anybody able to give me an idea of a basic service to provide? Ie would monthly transactions and bank recs be something that a soletrader/ small business may require? I would like to offer VAT returns too, but worry about getting myself in too deep!

Thanks again!

Is anyone able to help with this? Thanks

 

[Scalloway]

Small traders vary greatly in their requirements. My suggestion is to offer VAT returns as in general they very simple. The trader will either be on a VAT scheme or issue invoices with VAT on them. You just need to list the sales, calculate the VAT which should be very straightforward, then list invoices and the VAT thereon. The information listed for the VAT return will form the basis of the information they will submit to their accountant at the year end.

You could try approaching local accountants to see if they have any clients needing a bookkeeper. The accountant will be able to keep you right.

 

[elaine@cheapaccounting]

Can you practice without your MIP status with AAT then? I didn't think that was allowed under their rules? Jenni will know.

 

[MyAccountantOnline]

Is anyone able to help with this? Thanks

Maybe stating the obvious here but why not try and get employment with a small accountancy practice first so that you can get some practical experience?

Good luck

 

[Remote Resources]

Is anyone able to help with this? Thanks

Faith, if you're just interesting in doing bookeeping, try your local accountancy firms. They sometimes outsource bookeeping to VA's and home based bookeepers as the bookeeper charges less than they charge their clients for it and it's small fry work for them.

 

[David Griffiths]

Faith, if you're just interesting in doing bookeeping, try your local accountancy firms. They sometimes outsource bookeeping to VA's and home based bookeepers as the bookeeper charges less than they charge their clients for it and it's small fry work for them.

If they do, the first question that they will ask is about the experience and capability of the bookkeeper, and examples of the work. That's if they are prepared to consider the idea at all.

The harsh reality is that accountancy firms are regularly the target for people looking for bookkeeping work. I can't speak for others, but there is no way that I am going to recommend a bookkeeper to a client without knowing a lot more about their abilities. There are plenty of bookkeepers out there who are plain useless (and of course there are plenty who are first rate) and I'd need to know a lot more before unleashing anyone on a client. I know that I'm not alone in this, and the OP needs to be aware of the difficulty in building a relationship

 

[Remote Resources]

Also contact local tradesmen etc who are always looking for bookeepers and invoicers. Be aware though, they are a living nightmare when it comes to receipts and records :redface: It's a very good way to start and if you've passed level 4 AAT I can't see you struggling much with it - there's not much outside the beginners bookeeping course involved in keeping small business accounts and you're well past that level.

While the above note is correct and the accountancy firm will be looking for assurance of quality (I expect repeat business would dwindle were this not the case) it is still a standard way to find bookeepers, so don't let it put you off too much.

You have to start somewhere OP and it's great you're trying to find a way to get the experience. Most seem to be happy seeing newly qualified people, graduates included, stuck between a rock and a hard place, with no-one offering experience (unless at a hefty fee) and no-one willing to use you unless you have experience!!

 

[Scalloway]

Another possibility that has not been mentioned is voluntary organisations and charities. They rarely can afford to pay anyone to keep their books and will be glad to get help. A good way to get experience and to network.

 

[DFL]

Faith

If you are not confident of your ability at the moment my advice to you would be to start off small and specifically target simple jobs. Start with sole traders, owner managed contractor limited companies etc. Offer your service as a timesaver to these people, and mention that the accountants fees should decrease due to good records being kept. Find yourself an ally who offers bookkeeping services and they can check your work and guide you whilst you need it. Don't take on work that you are not comfortable with, or qualified to do....stick to bookkeeping, small payrolls, VAT compliance etc for the time being. You shouldn't have to worry too much about VAT if you stick with simple businesses with simple requirements though it will give you familiarity with the main points of VAT and the different VAT schemes such as the Flat Rate Scheme. There is much guidance from HMRC or you can always obtain a second opinion on here or AccountingWeb with any issues.

Something else to offer may be invoicing, credit control etc.

Bank recs are required by many buisnesses and again should reduce accountants fees.

Another benefit of your service which you could market could be monthly reports which not only aids decision making but is more commonly required by the banks or other lenders these days due to the downturn.

By starting off small in this way you will be able to gain experience with dealing with people, of overcoming the challenges of business, of getting your systems and pricing right - without exposing yourself too much.

If you would like to talk through it in detail then feel free to contact me. We give ad hoc advice and support to people in your position and have helped many launch and grow such a business. This is on a pay as you use basis rather than set up or ongoing fees.

Jason

 

[Simply Business]

Hi Faith Hemmings,
If you are still in the process of purchasing professional indemnity insurance and public liability insurance, we would be more than happy to help. Let me know if you want a call back from one of our consultants and I'll get it sorted.
Jasper Martens