working from home doing bookkeeping

[donna]

Hi there

im new to all of this, I have given up my job yesterday working for a housing association yesterday, I dont like the idea of other people telling me what to do, so i have decide to work for myself as a bookkeeper as i have studied as a certified accounting technican for 1 year , i have also passed computerised accounts course at college in 2004 , I have been thinking of this idea for some time but not really put it into action, i have done some bookkeeping for self employed people on the cheap. But as i know there is a lot of money to be potentially earnt i have decide to build up the courage and just go for it as my parnter has lots of savings he is willing to give me an amount to set me up and start earning up to £20,000 he is going to put in, i have thought about opening up a shop but i would like to give it a go working from home to see whether this is going to be a profitable business. As i know that these self employed people are paying on average 600-800 to get their accounts and self assestment sorted as my dad working a bricklayer has just paid his accountant 600 to sort out his accounts. He got just over £2000 back, he was happy paying this amount. So i thought to myself if he is paying that amount then there is loads to be earnt.

I m looking to work from home so has anyone out there got any ideas on what to charge im willing to undertake bookkeeping up to trial balance , balance sheet , profit and loss accounts, etc, and self assestment forms, I dont think that i want to go in to more detail of accounts.

Im thinking about applying for a partner to join me as soon as it becomes busy

Do you have any ideas on advertising,

I have also thought about doing peoples accounts for them online so there is no expenses on petrol for me what do you think?

Let me have as much ideas as you have please for me

If you know anyone that would like to have their bookkeeping done then let me know im here free to chat

 

[clarence]

Hi Donna

I'm doing exactly the same by the sounds of it - nice to have someone in the same line of business to bounce ideas off!

So far I've got most of my work through word of mouth. Most of my clients are sole traders, small shops, local trademen (tradespeople sorry) and generally those who are one-man-bands who don't have the time for their paperwork.

I've done leaflet drops, and written articles for local publications. I think the key is to get a little name for yourself within your local area and work outward from there. Advertising is probably good if you can afford it but it's hit and miss. Go into local businesses and just ask how they keep their books currently. You'll find most do their own but don't like it.

As far as charges are concerned - I prefer to charge a regular monthly fee, depending on the number of transactions. Can you do payroll and VAT? If so charge per employee and per return.

hth, pm me if you need any further help -Wendy

 

[Purdey]

Hi Clarence.

Am interested in working from home doing bookkeeping also. I'm currently working in an accounts office, but would like the flexibility, as have two small children.

Tell me, how does it work, do you go in once a month to pick up the previous months invoices etc. or is more frequently needed.

Then you give them the month end report.

Do many feel fine about letting invoices etc out of the office.

Would be really great if you could let me know this.

Thanks Erin

 

[DarrenC]

Get yourself a website or blog [www.wordpress.com offers a free option] and write about your services, and rates. Then link to the blog or site from your signature in forums and you'll be surprised how many referrals you can get.

Think about leaflets and distributing them to small business owners in your local area.

Contact a local newspaper about advertising, it tends to be cheaper in a local rag, and your targeting your local audiance.

 

[stugster]

Are you going to be the bookkeeper or the accountant?

 

[Peter Bowen]

I think there is a need for your service almost anywhere. My sister does this and she has more clients than she wants.

Cheers

Pete

 

[Basement_Studios_Ltd]

"I dont like the idea of other people telling me what to do, so i have decide to work for myself as a bookkeeper"

^ just a friendly note, I have worked in a very large firm, small firm then set-up my own firm...one thing I have always found is if you are working with a client you're thier servant (professionally...).. and you are always going to be told what to do to an extent.

Other than the course you did - have you got much experience working as a bookkeeper, people always seem to think its easier than it is... if you haven't with the greatest respect try and keep to smaller jobs to start with - nothing worst than taking a job on you can't do (we've all been their).

feel free to drop me a line at any point 07956 273685 or [email protected] I am a specialist sage technician and also do lots of accounts and tax - feel free to pick my brains!

 

[The Bookkeeper]

Before you can decide what to charge, you need to work out your costs: software (eg Quickbooks, Sage & MYOB), professional indemnity insurance & professional body membership to name just a few.

A recent survey by the Institute of Certified Bookkeepers showed that members were charging between £15 and £40 per hour, depending on geographic location.

 

[frauke]

I'll just add my tuppence worth....

Also contact all your local accountants. Many don't do bookkeeping, (or have more of this type of work than they can cope with) and would be happy to pass work to you..... (Especially if they can keep the client for the other more lucrative work).

I'm the District Secretary for the IAB covering the Southern & Wessex area (Although I'm really an accountant, but have a couple of book-keepers that help me out). Some book-keepers even help out in Accountants offices in exchange of free use of facilities....

 

[clarence]

Yes I'd agree with that, I get a lot of work from local Accountants. They get clients who want them to do everything, and they usually just don't have the time or resources.

From what I can gather good bookkeepers are in demand and the Accountants I have spoken to so far say they are always on the lookout for them.

 

[Fernhurst Solutions Ltd]

hello, this thread is just what i have been looking for ..... i am in the process of setting up on my own, and would love to be able to talk to someone who has done it and come through the otherside ..... any offers?

 

[clarence]

Hi, what do you need to know?

 

[Fernhurst Solutions Ltd]

hiya, thanks for the reply ..... its more the legal side of things; insurance, qualifications, legal obligations, etc rather than the actual bookkeeping side of things.

would it be possible to either e-mail you or discuss on msn?

 

[clarence]

Not on msn sorry, but pm me if you like

 

[Fernhurst Solutions Ltd]

hiya, i have sent you a pm and look forward to hearing back from you.

 

[IwAayBpo]

Hello All

Its batter you outsource your work to us.. we can do this work in very low rate..

isn't this batter IDEA...

OR else.. give us name of some companies who like to outsource their work to us in bulk.. we have good team of 40 bookkeepers..

Put your view on this.

Regards

IwAay Consultant

 

[Peter Bowen]

Batter you learn to spell before we outsource to you

 

[frauke]

I'm the District Secretary of the IAB (& IFA) in the "Mid-Southern" UK and organise 6-8 meetings a year. They are open to non-members too. Although they are arranged so members can receive training points towards annual their practice certificates (both IAB & IFA have a minimum amount of they have to do each year), they are a good oportunity to network, and talk to other students, book-keepers or accountants.

The meetings I hold are in Alton, Hants. Occassionally (if I have time) I will organise one in the Salisbury/Andover area.

 

[IwAayBpo]

Hi peter

Thanks for your reply...

We are here to work on book keeping... not on the grammar mistakes of English Language..

Never underestimate to anyone.. We knows very well how to work..as we are technically sounds.. I can give you guarantee that... there is not any company in UK or USA who can work as low as our rate.

You should have to appreciate everyone.. as this is open forum.. after your reply..still we are saying NAMASTE...

Regards

 

[Peter Bowen]

Hi peter

Thanks for your reply...

We are here to work on book keeping... not on the grammar mistakes of English Language..

Never underestimate to anyone.. We knows very well how to work..as we are technically sounds.. I can give you guarantee that... there is not any company in UK or USA who can work as low as our rate.

You should have to appreciate everyone.. as this is open forum.. after your reply..still we are saying NAMASTE...

Regards

The smiley indicates that the comment was made in jest!

 

[Alice3537]

Quick question!

If I wanted to study toward a book keeping qualification with a view to starting my own business, would I be better to do this through the I.C.B. or I.A.B.? And why?

Thanks!

A

 

[imanji]

hiya, thanks for the reply ..... its more the legal side of things; insurance, qualifications, legal obligations, etc rather than the actual bookkeeping side of things.

would it be possible to either e-mail you or discuss on msn?

Hi just to jump on the back of clarence, can you also email me regarding setting up a bookkeeping business??

 

[lockie]

One thing im curious of is why would someone pay £600 for a bookkeeper when some chartered accountants charge less ? I use a chartered account for a lot less than £600 and he saves me a lot of money too.

 

[Philip Hoyle]

One thing im curious of is why would someone pay £600 for a bookkeeper when some chartered accountants charge less ? I use a chartered account for a lot less than £600 and he saves me a lot of money too.

Funny you should say that. I've one client who uses a local book-keeper just for their payroll. The charges are extortionate - £50 per month for around 6 employees paid monthly - we'd do it for probably a tenner a month and do a better job as there are often mistakes. In fact, we don't charge £600 per year for their year end accounts and tax returns and they're a limited company - the book-keeper offered to do their year end work "for as little as £1000 per year". Unfortunately, the book-keeper is a friend so there's no talking to them!

 

[frauke]

Quick question!

If I wanted to study toward a book keeping qualification with a view to starting my own business, would I be better to do this through the I.C.B. or I.A.B.? And why?

Thanks!

A

Alice,

I don't know about the I.C.B. but do about the I.A.B. (as I have done their qualifications).

I choose IAB, because I had good access to tutors, and good local support. In my case it was a choice between IAB and AAT at the time, and I thought the IAB course was more relevant to the type of work I was already doing, and intending to do.

I don't know if that helps.

 

[frauke]

Most of the book-keepers I know, don't just do the books. Many also do the invoicing, a bit of credit control, pay the bills ....... Even if they don't they usually update the client records at least once a month (or once a week).... They fit their work load around the client, rather than the client around them..... I think that why sometime it looks like they are more expensive.... I know as an accountant, if I provided the same work in the same way it would cost a lot more.

 

[Alice3537]

Thank you for the response, Frauke, much appreciated.

Does anyone else have any views? Or does it not really matter?

Thanks!

A

 

[Kirsty St John]

Hi
I'm on maternity leave right now and looking to set up just like Alice.
I did a Pitman bookkeeping course years ago and ws about to refresh
which is recommended - ICB or IAB ??
I'd hate to get started on the wrong one !!
the links from ICB seem to lead to companies that do IAB !!

thanks,
K

 

[David Howard]

Book keepers are great! We run an accountancy firm and approx 3 years ago got into book keeping. We have a few book keepers who go to clients and prepare the books for us/update programs etc. We give them the necessary training so if the client has queries, they come to us if the book keeper cant answer on site and we help.

It also helps with accounts at the year end as book keepers normally do the job we say, do a good job, and doesnt come back a mess!

I reckon anyone thinking about book keeping, go for it. Normally they can charge per hour (West London they can probably charge between £8-£15 depending how good they are and can probably get more if they know more!)

I see a couple of posts talking about they have done a years experience and reckon they can do accounts. That im not sure about. I have done my ACCA qualifications and there is a lot more you pick up, which you wouldnt pick up in book keeping so that I would probably say dont do.

 

[frauke]

As mentioned before I don't know about the ICB qualifications, but I recently took the IAB L3 Advanced Manual Book-keeping Part 1 exams, and I will admit, it was one of the hardest Book-keeping exams I have ever taken. (Although this may have been due to only being allowed 2hrs instead of the 3hrs I thought I needed!) This is coming from someone with 25+ years experience in Accountancy & book-keeping. I have taken exams in the past, and I have always finished with plenty of time to spare, and normally have no problem with getting 98-100% marks. I've no idea if I have even passed - its going to be a couple of weeks before the results are in..... But I will say with the IAB qualifications, you will be a good book-keeper, rather than an OK one.

 

[frauke]

Registered Book-keepers - how many book-keepers are registered? I'm constantly being asked to recommend book-keepers, but not many seem to be registered anywhere!

The IAB have "members in practice" who are listed on the institutes web site. When I find one in the area where someone is looking it is easy to suggest that person (as I know what standard they are trained to). But there are just not enough people actually registered as being "in practice"!!!! If I can look up a book-keeper so can others looking for one.

Its not expensive to be a member, and register to be in practice. Many book-keepers study their exams, but don't become members - why? Accountants would never dream of not being registered with the institutes they qualify through - even if they don't practice - why are book-keepers the same? Do you not consider yourselves professional people? :|

Comments please??????

 

[LOUBELOUUK1]

If you are working as a book keeper from home do you need a practising certificate or is this just beneficial and shows you are more professional???? but not a necessity????
Just after advice thanks, Louise

 

[DavidT]

I think it is far more important than simply being registered with an organisation is to be experienced... and capable. If you get a solid recommendation for a bookkeeper (or accountant) it is likely that would be worth far more than judging on registration.

Of course a personal opinion, but I think those that know, being qualified doesn't necessarily mean you are more professional or more capable... although it is more likely. I have seen unqualified (or QBE) bookkeepers that are more capable of doing accounts than qualified accountants... not usual but it does happen.

Bookkeepers, nor accountants need any certificates or qualifications to do general work. It does help and I would recommend using someone that is qualified if you don't have any good recommendations to go with.

 

[frauke]

As Daivd says, using someone who is qualified "if you don't have any good recommendations to go with" is often the only way "the public" can have the confidence to use you.

I have found 2 benefits with having a practice certificate (mine is with the IFA) having spent 15 years as a qbe accountant and the last nearly 10 years as qualified - and that is:

1. I can provide Accountants certificates for mortgage purposes for all my clients.

2. Because my institute provides details of "Members in Practice" on their web site, I receive calls from people who are looking for a Accountant" who have found me from doing a internet search. So far, they have all been good quality clients.

The IAB bye laws state:
"Members of the Association offering Book-keeping services to the Public in the United Kingdon should apply for and be granted, a Certificate of Compliance".

The certificate of compliance is the same as a "practice certificate" as the members are regulated by the Association. The IAB for example is now listed as self-regulating under the new Money Laundering regulations.

The "professions" may not be as restrictive as in Ireland, but what will happen to individuals not registered with an institute/association and find themselves not regulated under the new Money Laundering regulations? (And that includes Book-Keepers!)

 

[LOUBELOUUK1]

Right forgive me if i am dumb....

reading your replies... i am assuming that you dont have to have a certificate BUT it does help with regarding to obtaining new clients.
I did accountancy work for a premiership football club and was producing the month end management accounts however as i have stressed am not fully qualified so i understand the QBE issue and agree.

I just seem alittle confused on the exam front now.... i have been told that because my AAT Qualification was earned in 1997 that i may need to sit update exams before i pursue this line of work!!! ????

Can you please confirm that i am understanding these issues please.

Many thanks Louise. :|

 

[frauke]

Its not just about doing exams - its also about becoming a member of the "Association". By being a member you have to collect CPD points each year for keeping yourself up to date. This does not mean you are to take exams, just find acceptable (to your association) ways of keeping yourself up to date. (Going to DS meetings, reading magazines, doing reasearch on accountancy boards etc. etc !!!)

The IAB accept some AAT qualifications (and other institutes) for some exeptions to become a member - and of course the AAT also may let you join!

Your starting point needs to be - become a member of a professional organisation. If this means doing some exams then do the exams, some give exemptions for experience together with other qualifications. Non will let you become a "Fellow" without the right qualifications - but many will accept you as member or associate to get you started.

 

[JenMAAT(hopefullysoon)]

Hi all

I am in the process of putting myself out there as a self employed person I am in the technician stage of the qualification and am wondering what to charge for a set of accounts and any other returns.

Jen

 

[hafeez]

hi there,
i am currently studying for my cima examinations and have a certificate in business accounting, does anybody know if i qualify for any exemptions with the iab?
i am also starting to do bookkeeping from home because i have a lot of experience in both sales and purchase ledgers, does anybody have any advice for me!

 

[frauke]

Exemptions - I think its very difficult to know what qualifications are excepted for exemptions, as there are so many out there - and sometimes you may get an exemption with one qualification, because you have it with others - without which it may not be acceptable for exemption. Also together with the type of experience you have - that can strenghten the qualifications you have.

This is the web page where you will find the IAB exemption form : http://www.iab.org.uk/exemption.asp

It may be worth submitting an application - I understand the membership dept try not to be too rigid in how they apply the rules as long as there is enough information (qualifications, experience etc.) supplied for them to consider an application. Put as much info on it you can - the more complimentary stuff you have the better your chances.

hafeez - depending on where you are with your CIMA exams, you may also get exemptions to join the IFA : http://www.ifa.org.uk/memshiproutes.asp

The big thing coming up is (Dec 07) - if you aren't a member of an ML approved organisation - if you provide any type of accounting/bookkeeping services you will need to be registered with the HMRC so they can provide your ML monitoring. Personally - given the choice I'd rather not be monitored by the HMRC!

 

[hafeez]

hey frauke thank u for the information, im looking into the links you have provided, can yopu tell me what this ML approved business is about as im a bit confused!
thanks again for taken the time to reply