Starting out as a freelance bookkeeper? Advice please.

[Yvie34]

Does anyone have any advice on setting up as a freelance bookkeeper? Apologies in advance for the long post. (Also posted on business start ups forum).

Bit of background – I’ve worked in Accounts for about 11 years, did my AAT years ago and am half way through my ACCA. I’m currently not sure if I will ever finish this. I’d like to get out of the rat race. I have children and am after a bit more work/life balance if possible – I am not looking to get rich, just make a comfortable living.

I am at the very first stages of looking to set up on my own and would welcome any and all advice please.

My main focus would be book keeping for small businesses, offering all round book keeping to trial balance, yearend accounts, VAT returns, Corporation Tax, credit control etc, tailored to the business. I am also thinking of maybe doing year end/tax returns/self-assessment for sole traders as well – this would be a side line, purely because I already do some for friends already.

I would have a website, Facebook page, and contact small companies direct to try and generate business. I was also thinking of offering greatly reduced rates to my first clients to help generate by word of mouth, thoughts?

I’ve seen in the accounting forums that people frown upon using spreadsheets for this – I would have thought this was easiest for a very small business? Advice on this please.

I’d imagine I would need to do this alongside my main job for a period while I built up a client base, and would apply for a bookkeeper license through the AAT.


Has anyone who has done this got any advice? Potential pitfalls I may not have thought of? Anything really please! Thanks.

 

[JamesComer]

Hi @Yvie34

As a qualified accountant I started working for myself late last year and can only say that it is hard moving from a job to working for yourself. It will take time and my best advice is do not pitch yourself based on reduced rates. This is robbing Peter to pay Paul and will mean that the amount of clients you will have to service to make money will be so high that you may as well stay employed

Regarding your comments on spreadsheets, with HMRC moving everything digital from 2018 - 2020 (pick a year) my feeling is bookkeeping on Excel has had its day I am afraid. My advice would be if you are keen to work for yourself and want to do bookkeeping is to maybe team up with a local accountant who could push work your way and vice versa. That will help build your initial client base. Another tip would be to specialise in a particualt field and pitch yourself as the bookkeeping guru for that industry.

You may also wish to double check if you are allowed to start your own business whilst in employment a lot of firms will have a clause in your contract saying you cannot do this.

Right! To end of a positive, whilst it has been difficult I am thoroughly enjoying working for myself and the key is to stick at it. It is one of the best decisions I have made and my work / life balance is now great. Best of luck! Please let me know should you want to chat through anything else and do update me as to how you get on

Thanks

James

 

[MyAccountantOnline]

I always think it's such a shame to get half way through professional exams and stop so my advice is to finish the ACCA exams.

It is hard work, especially with a young family, I did it that way too but the ACCA qualification will enable you to do so much more than bookkeeping.

 

[Yvie34]

Thanks for this James.
In regards to teaming up with someone local, I had thought of this as a starting point, maybe getting some smaller accounts outsourced to myself - would I not be viewed as potential competition? Or worse as if I may try to poach clients?

 

[JamesComer]

Ooops, I missed that bit good spot @MyAccountantOnline .... I cannot second that enough. My best best 110% advice would be to finish the ACCA qualification. We all experience a period of doubt when studying it which i think is only natural. But if you can plough through, once qualified it will open up so many more doors for you than bookkeeping. If you pass and still want to get out of the rat race at least you leave with a good qualification.

From presonal experience, when i had my concerns about ACCA mid study, I made an effort to sit down and talk to other students. They were feeling much the same but we supported each other through it all.

 

[JamesComer]

@Yvie34 - i dont think it would be an issue at all. At the end of the day all business relationships are built on trust. Provided you are very clear about the working relationship with the accountant I have seen it work and indeed have a similar relationship with a local bookkeeper now. There is some work that for whatever reasons accountants wont do either through location, price or A.N.Other and it is good to have someone to outsource to.

 

[MyAccountantOnline]

@Yvie34 do also bear in mind much of the work you've outlined isnt something you can do as an ACCA student. The ACCA has strict rules on what work students can do so if you do decide to take the freelance option you may need to resign your ACCA membership.

 

[Yvie34]

Thank you both - in terms of freelancing is there really a big difference to the services I can offer if I finish ACCA? Apologies if that's a stupid question.

 

[Yvie34]

Thanks Nicola - if I go down this route the idea was to completely quit ACCA and get a bookkeeper license through AAT - still undecided though so thanks for the advice.

 

[JamesComer]

Agree again @MyAccountantOnline - you are on the same wavelength today! Yep, I believe from memory without being qualified and no practising certificate you can only prepare bookkeeping to TB stage. But done quote me.

@Yvie34 - I would say sit down and have a proper think about what the motivation is for the change. Is it money? Work / Life balance? You dislike your current job? Do you have a desire to work for yourself? This should hopefully help you boil down what the problem is and then hopefully help find a solution.

 

[MyAccountantOnline]

Here's a link to an ACCA factsheet which explains what work students can undertake -

http://www.accaglobal.com/content/dam/acca/global/PDF-members/2012/2012p/PC_factsheet.pdf

 

[Darren@dynamoaccounts]

There's a big difference in terms of credibility and your rates. The services may be similar (other than audit which suspect not something want to go into) but also makes you more acceptable to banks for signing off certificates as well as a couple of other nice to have add ons however it give you that additional credibility to gain work.

 

[MyAccountantOnline]

Thanks Nicola - if I go down this route the idea was to completely quit ACCA and get a bookkeeper license through AAT - still undecided though so thanks for the advice.

It's certainly an option and I know a few who have taken that option but personally I'd think long and hard about throwing away the ACCA qualification now. Think long term.

 

[Yvie34]

Work life balance - I guess I have no interest in climbing any corporate ladders so am wondering if it's worth finishing the ACCA if I'm happy at my current level? I don't dislike my current job, however long term I don't want to work for somebody else.

 

[JamesComer]

Ok.... deep breath. First things first I would look at the following:

1. What your competitors in the local area at currently offering / charging?
2. How much you need to earn per month to live off?
3. Any savings to can to commit to the start-up and a plan of attack for attracting clients?

Then price up if you can afford it and itf it is even viable.

On a purely personal level I would say finish ACCA first and then if you still want to work for yourself look to do it then. With the qualification you can offer so much more and also charge more.

 

[Yvie34]

Thanks for your help guys

 

[Scott@KarmaContent]

I think if you provide a good service and market yourself right, there's no reason why you can't have a great little business.

From the sounds of it, you want to make things simple, have a nice little business that pays the bills (+some more) and have a decent work/life balance. Nothing wrong with that at all. Do you need the ACCA qualification to do that? I don't think you do (I used to recruit accountants).

You well know that the ACCA qualification is tough, do you really want to be doing that if it isn't necessary? That time would be much better spent on your business or with your family. There are lots of people who are AAT qualified who have great businesses and make a great living. The ACCA is a great qualification but I just don't think it's necessary for what you are doing.

From a marketing point of view, I think you may even find it easier to find clients as a bookkeeper than as a qualified accountant. Lots of self employed people shy away from using an accountant in the first instance (citing the expense) and then you see them post on here in a panic when they're in a complete mess. I'd see those sorts of people as your target market. You can take away all that hassle, crunch the numbers on a monthly basis for less than an accountant charges.

 

[nelioneil]

@Yvie34 do also bear in mind much of the work you've outlined isnt something you can do as an ACCA student. The ACCA has strict rules on what work students can do so if you do decide to take the freelance option you may need to resign your ACCA membership.

There are alternatives of course...the OP could resign as a student from ACCA

 

[MyAccountantOnline]

There are alternatives of course...the OP could resign as a student from ACCA

Yes they could, but it seems such a waste to throw away so much hard work.

 

[STDFR33]

If you are half way through ACCA, personally, I would plough on with that and qualify.

Whilst you may be successful, self employment offers no job security. Should you be unsuccessful, ACCA would carry a lot of weight in the job market.

For just another 18 months or so, you would have a much valued qualification.

 

[MyAccountantOnline]

If you are half way through ACCA, personally, I would plough on with that and qualify.

Whilst you may be successful, self employment offers no job security. Should you be unsuccessful, ACCA would carry a lot of weight in the job market.

For just another 18 months or so, you would have a much valued qualification.

My thoughts entirely.

When I did it many years ago it was a very long hard slog and I nearly gave up several times. I was eager to set up on my own. So glad I kept going though.

 

[Nicola Donnelly]

Hey, Good luck with your new venture. I was in a similar situation as you, AAT qualified and half way through CIMA when I started my business. I started with 1 bookkeeping client and now have 39 clients, but still work full time and don't know how I could ever give that security up! One day though Ill be honest, I've probably learnt more in the last 18 months of being in business than in all my years of working , and studying finance. There is a lot to be said for clients asking you some weird and wonderful things... then researching it , asking questions, etc Biggest advice I could give would be to not take on anything your not comfortable doing, unless you have some sort of mentor to advise/ train/ help you. I made a link early with a chartered accountancy practice who has been invaluable, I drop him a line anytime I get asked to do something I feel I haven't had the experience with , hell then tell me wether its too specialist (think derivatives etc ) ill then advise they contact elsewhere, or he'll point me in the direction and advise me. Email every practice in your area, youll be surprised how many replies you get.. Good luck x