How Difficult is Bookkeeping?

[shrewdy]

To keep matters 'short & sweet' I'm just asking as my great aunt does the books as a part-time income and has achieved overwhelming success. Apparently, it's not uncommon to charge in excess of £15 per hour and, at my age, 2/3 of that would be great, while offering a platform to take things further if all goes well.

From what she's told me, it's not too difficult and fingers-crossed, I'm expected an A* in Higher Maths when I get my exam results back, so I think it might be something worth me looking at. It actually sounds a lot more like logic and problem solving, than maths, anyway.

Oh dear, I said I'd be short and sweet and I've already typed my way through two paragraphs. If the following questions could be answered, I'd appreciate it a lot.

1. How difficult is bookkeeping (for small companies, we're not exactly talking Microsoft... yet )

2. This ties with some of the discrimination topics floating about... would my age put most people off? Is it possible to run things solely online (in which case my age doesn't have to be known)?

3. Are there any online courses about where I could leanr the ropes, first of all?

4. Pricewise, what are the going rates you pay bookkeepers to do your books?

I'll see what responses I get to those questions, but if things seem possible, I might get cracking, start offering my services for free once I'm happy I know what I'm doing and build on from there once I've established myself as reliable and have some good testimonials under my belt as well as the trust of some company owners.

The newspaper idea didn't quite work out (see 'seeking adivcie' thread in the general business forum), but I've got several schemes going and I'll see what happens.

I will not stop until success is achieved!!!

 

[manchesterhypnosis]

Almost all book keeping is based on the double entry system, ie each account has a debit and credit side, so you write every transaction twice as a cheching mechanism. There are also other "quirks", but if your the sort of person who can remember and follow rules, book keeping is not a problem once you have got your head around it.

If I can be so bold as to make a suggestion: why not buy yourself a computer accounts package such as MYOB or Simply Books, and go computerised, it will save you a lot of time and effort, and you can charge more; but make sure you get one that allow multipul businesses. The other solution is to use an on-line service such as KashFlow which is an option I am seriously looking towards at the moment as I'm thinking about going Linux.

 

[SuffolkDesigns]

The other solution is to use an on-line service such as KashFlow which is an option I am seriously looking towards at the moment as I'm thinking about going Linux.

Kashflow is hosted for you, I don't believe that the system allows for individual installations. (Duane might chip in here) So it doesn't matter what OS you use as you access it through a browser anyway.

 

[The Bookkeeper]

Bookkeeping is a lot more complex than perhaps you realise. Double entry bookkeeping forms the basis for most procedures but you will need to be able to account for:

• stock control
• correction of errors
• trial balance adjustments and provisions
• disposal of fixed assets
• extended trial balance
• incomplete records
• etc

In addition, you will need to be able to produce year end accounts for sole traders, partnerships and limited companies as well as manufacturing accounts.

Computerised bookkeeping is an essential skill as well but you need to be able to demonstrate an understanding for manual bookkeeping in order to successfully employ the computerised bookkeeping systems.

If you are an Institute of Certified Bookkeepers Qualified or Certified bookkeeper then you can expect to charge £15- 30 per hour but a 'bookkeeper' without ICB (or similar) qualifications would usually charge £5-8 per hour.

 

[TheIntroducer]

Book Keeping is a broad church and completely depends on what the Company hires you envisages Book Keeping to be.

Most small companies employ a book-keeper because basically they can't be bothered to do it themselves or their accountant has rapped their knuckles for continuosly getting behind.

Some smaller companies will just have a big ledger book (normally red) where they record all the receipts, invoices, expenses and input and output VAT. As mentioned by other people, these are normally set up in a double sided fashion and will typically have been knocked together by their accountant. Small companies might only employ a book keeper on a part time basis and how much they pay depends on a whole manner of things (geographic location, age, experience etc.). I think the best way for you to start would be to find a very small company and charge something like £6.50 plus and build up from there - once you find it's a breeze, you'll feel confident moving up and charging more.

The next level up is computerised accounts like Sage and various others - but I've waffled on too long and need to go for lunch

Good Luck

 

[shrewdy]

From the feedback, it seems like something that would require work, in that I'd need to 'learn the ropes', but work is not a problem for me. I've contacted Institute of Certified Bookkeepers and it seems the best courses are offered by The Distance Learning Corporation. They'll contact me soon and I'll take it from there.

Thanks for all the help, much appreciated!

 

[Gillie]

Some smaller companies will just have a big ledger book (normally red) where they record all the receipts, invoices, expenses and input and output VAT. As mentioned by other people, these are normally set up in a double sided fashion and will typically have been knocked together by their accountant.

Big ledger book?? Aint used one of those for centuries!! I thought most these days at the very least used products such as sage!!

 

[The Bookkeeper]

From the feedback, it seems like something that would require work, in that I'd need to 'learn the ropes', but work is not a problem for me. I've contacted Institute of Certified Bookkeepers and it seems the best courses are offered by The Distance Learning Corporation. They'll contact me soon and I'll take it from there.

Thanks for all the help, much appreciated!

Great move- I have always found the ICB to be an extremely friendly and helpful bunch.

I can recommend the text book "Business Accounts" (third addition) by David Cox as a good starting point. If you need any further advice about the ICB or the exams then feel free to drop me an email.

Good luck!

 

[Pebble Communications]

Good idea to get qualified.You need to provide a quality service.

My boyfriend is an accountant and the number of businesses that give him accounts from a 'bookkeeper' that are full of errors and serious problems is unbelievable. They then have to pay him to re-do the books before he can do the real accountants' stuff. Leading to lots of disgruntled bookkeeper users wanting their money back!

 

[KM-Tiger]

It actually sounds a lot more like logic and problem solving, than maths, anyway.

Yes, it is. Software deals with the arithmetic and the basic concepts, once understood, are easy. The difficulty lies in how to deal with the unusual in amongst the routine.

To be successful you will need to be able to maintain speed and accuracy in what often seem like humdrum and boring tasks. But also be ready to deal with a challenge like changing from VAT Cash Accounting to Standard Accounting for instance.

Seems to me there is a shortage of good bookkeepers.

 

[Jayne]

I had a small business, before my new small business and have never used computers for my accounts. I used the green Everite books ruled for VAT, ever so easy. I'd fill it in, then send it off to my accountant.

Book keeping is the most boring thing in the entire universe and would have loved to pay someone to do the boring stuff, but then i'd just look lazy..lol

Jayne