Self employed Bookkeeper

[helen1981]

Hi Everyone,

I'm new to this forum, i have been searching through some threads and found your responses really helpful

Basically

i'm looking at setting up on my own to do companies bookkeeping, i have not got any actual qualification's but have got years of experience working in accounts departments doing various monthly accounts/bookkeeping

What do i need to set up on my own, What is expected of a self employed bookkeeper, do i need qualifications??

Thank you in advance for your advice

 

[elaine@cheapaccounting]

Hi Helen

Please don;t take this the wrong way.

there are several posts / week similar to yours.

So please have a search and you will find some really useful info that we ahave all posted in the past.

Good luck with it.

 

[helen1981]

Thanks you for your response :redface:

I spent a good couple of hours searching and reading a few before i dare post

I might have missed some posts, so i'll go and recheck

Thank you anyway, sorry to have wasted your time :redface:

 

[Williams lester]

Thanks you for your response :redface:

I spent a good couple of hours searching and reading a few before i dare post

I might have missed some posts, so i'll go and recheck

Thank you anyway, sorry to have wasted your time :redface:

Most important thing you will need is to register for MLR with HMRC.

 

[MyAccountantOnline]

As Dave says the ML registration is a must.

Yes - do have a read of old posts on here, you'll find a huge amount of info.

In summary I think you need confidence and ability - the formal qualifications for a bookkeeper arent quite so important.

Depending on where you are you may be surprised at the level of competition - their are so many people who have been working in finance related industries that have lost jobs and decided to take this route.

Good luck

 

[Alison Jones]

There are a lot of posts about this matter every week.

My advice to anyone thinking of setting up as a self employed bookkeeper who has a steady job and income then it is not the right time to start out as a bookkeeper. So many people are setting up as self employed bookkeepers because they are being made redundant from their jobs, so the competition is more people wanting the clients and also have the other side that some businesses are taking cut backs and Directors/Business owners are learning how to do their own bookkeeping to keep costs down rather then hiring a bookkeeper. I know that their are very few exceptions and think it is in the locality where people live where some bookkeepers are managing to get full working week with their clients bookkeeping needs.

Also on the other hand where some people have already been set up as self employed bookkeepers who have large client who was allowing full working bookkeeping week if that bookkeeper has that client go under (or take cut backs) then those bookkeepers will be competing for the work as well.

Alison

 

[Marky65]

Hi Helen
I have just started out similarly to yourself, and though it is no surprise to me I can confirm what Nicola states that competition is tough out here. I am fortunate that I am still employed 2 days per week but getting my own clients is hard.
I am not by any means trying to put you off because I much prefer working for myself.
If you need any further information that you can't find in previous posts please pm me.
Good luck
Regards
Mark

 

[helen1981]

I was made redundant a few months ago, and to be honest 4 or 5 times in my working life!!! i'm temping in various companies but i'm so fed up of companies telling me they dont need me anymore and agencies that dont ever get back to me that i thought i can do this on my own

I'm working at a company till Oct but in the meantime i'm going to advertise like mad, make a few phone calls and hopefully get a full portfolio as soon as i can, i will be working evenings/weekends until i can sustain a full week self employed, its just quite nerve wracking and i'm worried that i cant do some of the things/what is expected of me,i know Sage inside out and also JDE inside out not sure about other packages but I will read up! and have always done credit control as well!!

I will hopfully go to clients premises and do their books there, I will basically make a start with the advertisting and phoning and see where it gets me.

Thanks for the advice especially about the HMRC - I will read up later and if i think i can make a good career out of it i will fill the forms in


Helen

 

[Blackberry]

There are a lot of posts about this matter every week.

My advice to anyone thinking of setting up as a self employed bookkeeper who has a steady job and income then it is not the right time to start out as a bookkeeper. So many people are setting up as self employed bookkeepers because they are being made redundant from their jobs, so the competition is more people wanting the clients and also have the other side that some businesses are taking cut backs and Directors/Business owners are learning how to do their own bookkeeping to keep costs down rather then hiring a bookkeeper. I know that their are very few exceptions and think it is in the locality where people live where some bookkeepers are managing to get full working week with their clients bookkeeping needs.

Also on the other hand where some people have already been set up as self employed bookkeepers who have large client who was allowing full working bookkeeping week if that bookkeeper has that client go under (or take cut backs) then those bookkeepers will be competing for the work as well.

Alison

Sorry but I don't agree with this one bit, there has never been a better time to start a business and bookkeeping is a good option if you have the skills and experience as the start up costs are minimal.

Yes there are lots of people doing it but competition is healthy. If someone wants it badly enough and are good enough they will be able to differentiate themselves and gain the clients they need.

Location is only a factor if you limit yourself to gaining a local client base.

 

[helen1981]

I'm from Derbyshire but moved to Nottinghamshire so i know both areas really well,would you recommend posting in the local cities/towns newspapers???

 

[weebly_one]

Good Luck with setting up your business. I have been book-keeping for about 13 years now, but only started to offer my servcies to others last year. It is hard to find clients, but I have found mine through word of mouth and business networking, sticking mainly to women only networking events which have no outlay (just a drink and a chat with like minded women). I would recommend networking but that might be hard while you still have another job.

I also offer to sell Sage software (& pay commission for any sales put my way) at these events to try and bring more busienss in, as I am a Sage Accredited Reseller too, and have done Sage training for years.

Good Luck - I hope you can make your dream a reality.

 

[Zeno]

Sorry but I don't agree with this one bit, there has never been a better time to start a business and bookkeeping is a good option if you have the skills and experience as the start up costs are minimal.

Yes there are lots of people doing it but competition is healthy. If someone wants it badly enough and are good enough they will be able to differentiate themselves and gain the clients they need.

Location is only a factor if you limit yourself to gaining a local client base.

And I don't agree with you however it is a timing difference.

I believe that over the short term, book keepers are going to have a tough time of it with every man and his dog setting up and charging increasingly lower rates.

After their clients realise that most of them will need post it notes to help identify their arses and their elbows the market may improve and the good ones will have lots of work sorting out the mess.

 

[elaine@cheapaccounting]

I'm from Derbyshire but moved to Nottinghamshire so i know both areas really well,would you recommend posting in the local cities/towns newspapers???

my advice on this and I have made the same point before:

spend some time on a marketing plan

does advertising work? do you get a good return on the cost?

I would suggest you identify your customer - who will give you work.

Is it a particular industry, an area etc.

Then think about - why will they 'buy' you as opposed to XYZ bookkeeper.

The more time you spent on this - the better the result

Getting a USP is vital - they are so many accountants, bookkeepers etc out there.

Yes there are also a lot of clients.

But why will they come to go.

And I will give a pound to the first person who guess my USP!

 

[elaine@cheapaccounting]

BTW - the above is very brief.

The marketeers on here can add more.

Search the internet for cheap / free ways to market.

Business Zone has an article on this

 

[Blackberry]

And I don't agree with you however it is a timing difference.

I believe that over the short term, book keepers are going to have a tough time of it with every man and his dog setting up and charging increasingly lower rates.

After their clients realise that most of them will need post it notes to help identify their arses and their elbows the market may improve and the good ones will have lots of work sorting out the mess.

what exactly are you disagreeing with???

Have i suggested every dick and his dog have a go at being a self employed bookkeeper - think not, I've said if you have the right skills and experience then its a good idea

if someone is good enough and can provide value for their clients they will always do well regardless of someone else charging less next door

 

[elaine@cheapaccounting]

calm down boys - it's only a forum

 

[Zeno]

what exactly are you disagreeing with???

Have i suggested every dick and his dog have a go at being a self employed bookkeeper - think not, I've said if you have the right skills and experience then its a good idea

if someone is good enough and can provide value for their clients they will always do well regardless of someone else charging less next door

I am saying that any new book keeper starting out will find it difficult to find clients given the amount of competition. It will take time for the good ones to establish their reputation and gain clients from it just as the bad ones will be uncovered after their first visit to their accountants.

So I agree, that in the long run the good book keepers will always be able to get work however in the short term, they will be up against all the rest.

 

[Alison Jones]

Sorry but I don't agree with this one bit, there has never been a better time to start a business and bookkeeping is a good option if you have the skills and experience as the start up costs are minimal.

Yes there are lots of people doing it but competition is healthy. If someone wants it badly enough and are good enough they will be able to differentiate themselves and gain the clients they need.

Location is only a factor if you limit yourself to gaining a local client base.

I have to disagree with you. Location is an important factor. From my experience nearly 2 years of offering and promoting a remote bookkeeping service, clients do not want this service, they all say they want local bookkeepers they can meet up with face to face. It may be because I am in the North and maybe bookkeepers in the Midlands who offer similar service because they are in a central part of the country can successfully offer this service.

Also for many bookkeepers if they have any clients who are in an industry which is affected by the credit crunch and that customer goes bankrupt, or decides to shut business before they go bankrupt they lose that client they then are competing with all the new bookkeepers who have set up who may have priced their rates much lower and some businesses will take on those new unexperienced bookkeepers that cost them less. Also you have other side of things, clients can suddenly hire a staff member to do the job, maybe unexperienced at around £7 an hour (lower then many self employed bookkeepers) to do their bookkeeping and there is nothing the self employed bookkeeper can do.

Personally I think any bookkeeper who says it is easy to gain clients, and to keep hold of all their current clients in this current economic time are lying to themselves or in very small scale they live in a great area of the country which is not being affected by the credit crunch. Every time I go to the main town centres near where I live there seems to be another 5 commercial premises up to let.

Alison

 

[Blackberry]

I have to disagree with you. Location is an important factor. From my experience nearly 2 years of offering and promoting a remote bookkeeping service, clients do not want this service, they all say they want local bookkeepers they can meet up with face to face. It may be because I am in the North and maybe bookkeepers in the Midlands who offer similar service because they are in a central part of the country can successfully offer this service.

Also for many bookkeepers if they have any clients who are in an industry which is affected by the credit crunch and that customer goes bankrupt, or decides to shut business before they go bankrupt they lose that client they then are competing with all the new bookkeepers who have set up who may have priced their rates much lower and some businesses will take on those new unexperienced bookkeepers that cost them less. Also you have other side of things, clients can suddenly hire a staff member to do the job, maybe unexperienced at around £7 an hour (lower then many self employed bookkeepers) to do their bookkeeping and there is nothing the self employed bookkeeper can do.

Personally I think any bookkeeper who says it is easy to gain clients, and to keep hold of all their current clients in this current economic time are lying to themselves or in very small scale they live in a great area of the country which is not being affected by the credit crunch. Every time I go to the main town centres near where I live there seems to be another 5 commercial premises up to let.

Alison

The whole point of a remote service if you offer to promote it is that it can be done from anywhere being based in a central location shouldnt make any difference to if your based in outer mongolia!

The success of such as service obviously depends on where and how you promote it.

Yes I agree the credit crunch is affecting alot of clients but its how you adapt that ultimatley decides whether they keep you on or not - if you can do more for them and add value to your services the client will see you as being an invaluable part of their business and will want to keep you on.

Unless clients are paying a stupidly high fee they won't move unless they are unhappy with the service, clients that say they are leaving for someone say £2 an hour cheaper are lying.

what are you going to do if someone tells you they are leaving for someone a bit cheaper? Just let them go? Or would you call them up and put your case for them staying with you? Its a lot easier to keep a client than to get a new one to replace them.

If someone wants to do it themselves to save money point out to them its a false economy as they will usually make mistakes and have an increased accountancy bill as a result.

No one said it was easy to find clients, but once you've got them if you provide outstanding service and value they won't leave.

 

[AboveParr]

I'm on the Notts/Derby Border too and started at the beginning of the year. BK is one of the services I offer...

My advice - Have a really good think about whether you really want to do it, or if it's just that you need a way out of your current situation. I say this because it's REALLY hard work - if you've never been self-employed before then you're in for a shock no matter how hard you think you used to work! (especially if you need to carry on temping to pay the bills)

If it still seems like a good idea draw yourself up a business plan and review it objectively.

If it STILL seems like a good idea, then go for it, give it your very best shot and enjoy it!!! There are lots of self-employed book-keepers starting up but there are also lots of self-employed businesses starting up and a fair few of them will need help...

Feel free to PM me if you want to talk more.

Sara

 

[chennas]

You might require some qualification or certification. I am not sure though.

 

[Justine]

HI, i am wanting to start up on my own. i have a few exams to complete and then im all set. I have no idea where to start, and as you have successfully set up on your own i was wondering if you could give me any advice.

Thank you for your time
Justine

 

[chennas]

Are you good in Excel ? If yes, you can do wonders by providing many value added reports to ur clients. That must help.

Checkout www excelgoodies com

 

[helen1981]

Thank you everyone for all your help.

I do still really want to do this so i'm looking into it all in detail, im in temp employment till Oct so i hopefully i will run my business at the side of my current full time job

Is 5 months to get a few clients realistic or do i need more time, if i need more time then obviously i will need to do more temping work after this contract ends

Thanks Again

Helen

 

[elaine@cheapaccounting]

Is 5 months to get a few clients realistic or do i need more time, if i need more time then obviously i will need to do more temping work after this contract ends

Thanks Again

Helen

Helen

No one can answer that really. You could be good at marketing / selling or you could be rubbish!!

Like any business - set out a plan, give it a go, control costs and have clear check points to see if the plans are on track.

Most important point - know why to quit if it is not working

Good luck