I would like to start my own bookkeeping business, but I am lacking on experience. I do have my AAT qualification which covers my academic side but I never really have worked anywhere to gain the valuable experience which could have had help me to understand how things works in real world. please advice me on things I have to do before I can launch my business, for example, do I need an accountant, the legal requirements, do I have to register as a company etc. PLEASE HELP !!!!!!!!!!!!!!!!!!!!
Replies (12)
Please login or register to join the discussion.
You don't sound ready yet
Sorry, but because you don't have any practical experience I would strongly advise you to get some as an employee first.
Otherwise you will get into difficulties with new clients quite fast and they won't pay the bill.
Companies expect you to know what you are doing.
Hm
thank you, any other suggestions please.
I agree with the other responses.
It doesn't sound like this will be sufficient for you though until you get the answer you'd like to hear.
Agree with Moonbeam
Books have been written on the subject so your question is too big for anyone to be able to help you very much.
You need to get some practical experience with a general employer or preferably a firm of accountants before you think about starting your own bookkeeping business or it will all go horribly wrong.
Edit, sorry Moonbeam!
I agree with Moonbeam
Real life is very different to classroom training. You need experience under the guidance of an accountant, as you would still be out of your depth if you took employment with a normal business, as there wouldn't be anyone with sufficient knowledge to help you.
Have you thought of asking around some accountancy practices to give you experience, or maybe do some free subcontracting in exchange for training?
A bit catch 22
How can you get the work without any experience?
How can you gain experience if you can't get any work?
I think the answer is (as suggested above) to find a small firm of accountants who are willing to take you on in some capacity.
I would look in the sits vac columns of local newspapers, or phone around to see if there are any vacancies.
It is unlikely that you will succeed in your own business without doing it somewhere else, first.
Supported experience
This is about working independently without the experience to do so. You gain experience by working with someone who will review your work and assist you in the transition from academic to real-world book-keeping. Only when you have gained confidence and knowledge from supported work are you ready to go it alone. How can you get the work without any experience?How can you gain experience if you can't get any work?
Describing the situation in Catch 22 terms implies either no-one will employ someone solely academically qualified, or relevant experience can only be gained by operating alone. Neither of those is true.
Sorry to say I do agree with the Moonbeam et al. It is difficult with taking the exam knowledge into the real world without experience, it's almost 2 completely different things and AAT doesn't train you in book-keeping.
I googled book keeping training and got this page which came up may be of some help: http://www.accountingcoach.com/bookkeeping-training
If you are going to do it you should register for self assessment with HMRC as a soletrader, I wouldn't go into setting up a company more hassle than it's worth unless you have high turnover and profit.
Get some experience
Try and find a bokkeeeping job or internship at a firm of accountants - gain some experience first - the launch yourself into business