What are the minimum qualifications for a bookkeeping business?

What are the minimum qualifications for a...

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Hello,

A few years ago I studied Accountancy with an ACCA and CIMA accredted university, but it was abroad and I couldn't finish the master's programme due to moving to the UK. Since then I had to start work in a different industry but my dream remained to open an accountancy practice one day. I am willing to start with the very basic service that can be offered and gradually expand as my skills and experience grow.

I need to undertake some training to refresh my knowledge, adapt it to the UK market and get it as practical as possible. However, I cannot invest much at this point, both money and time as I am in full time employment.

Can you advise me what the minimum requirements are to start a bookkeeping business? I know I need to register for the MLR with a supervising body, but do I need any formal qualifications and accreditations? If not, I will focus more on the practical side of the training.

Any other practical advice will be very much appreciated, e.g. best and most affordable training courses, software to learn and buy, etc. I am aware of the challenges of setting up your own business and the main assets I will need, so I don't mean this type of advice :)

Thank you very much!

Chrisy

Replies (7)

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By Tim Vane
03rd Jan 2015 19:41

The good news is that you are required to have exactly the same level of qualifications whether you want to be a bookkeeper, an accountant, a cleaner, a check-out assistant or a juggler. i.e. No qualifications other than the ability to do the job. And you'll need to be regulated, at about a similar level to a tattoo artist or somebody who sells sandwiches.

Just pick up some books and when you are ready start advertising for customers.

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By DKB-Sheffield
03rd Jan 2015 19:57

ICB

If you want to get some refresher training and an accreditation, have a look at the Institute of Certified Bookkeepers website. They'll also help you with MLR.

All I can say is... be sensible. Do not profess to be a chartered account or tax expert if you are not one. Which incidentally is the same advice I would give to anyone starting in business.

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By andy.partridge
03rd Jan 2015 22:38

Minimum qualification
Courage

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By petersaxton
03rd Jan 2015 23:35

My advice

You just need to be able to do the work.

I would suggest that, as well as considering taking courses which will increase your knowledge, that whenever you are confronted with a problem you are unsure of then do as much research as possible to ensure you are dealing with it correctly.

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By Moonbeam
04th Jan 2015 12:22

Am I right in thinking you've no practical experience?

I often bump into people who tell me they are "qualified bookkeepers" Such people usually have no experience of actually doing bookkeeping for an employer but eg the ICB regularly assure people taking their rather easy exams that these are all they need to set up on their own. It's a marketing strategy that seems to work for the ICB, but is nonsense as far as their members and their unfortunate clients are concerned.

So if you've no practical experience no amount of qualifications will make up for this. Small companies, who will be your bread and butter, are entitled to assume you know what you are doing, and no amount of looking things up in books will make up for this.

I would strongly urge you get some relevant experience before contemplating setting up on your own.

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Replying to lionofludesch:
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By Chrisy_Dragonheart
04th Jan 2015 15:46

Thank you, all, for the useful replies so far!

Moonbeam:

Unfortunhately you are right and I know it is an issue - in fact, it was my main mental stumbling block several years ago when I was studying. I agree with you and I am thinking of solutions around this, e.g. asking accounting firms to volunteer with them for a few hours a week and working alongside an experienced accountant for a period of time. As mentioned in my post, I am in full-time employment and I need the income so I am thinking of a scheme where I take half a day off work each week for example to practise or something like that. My only "sort of experience" is with my husband's company (Ltd) where I have submitted some documents on the basis of work done by the accountant - but clearly this is nowhere near enough.

Do you have any other suggestions how to get around this? By the way, five years ago I applied for bookkeeping roles but no one would consider me because I was "too qualified" in the other area I currently work in for an employer to take me at entry level and I had no accounting experience to start a higher level accountancy job...

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By Moonbeam
04th Jan 2015 17:57

You will have to be very imaginative!

Asking an accounting firm to volunteer with them implies that they will need to train you - which of course they will. That is not on for most of them, as the time of the trainer could be spent on chargeable fees. Margins are desperately low in many such firms, so unless you have another skill you can offer them that they can use I think that's a dead end unless you know someone in such a firm.

Charities struggle to get good quality people to work for free on their bookkeeping/accounts. This might be the way forward for you, as you can do the work at the weekend. Without proper supervision from an accountant or good bookkeeper, it will still be difficult to get the training you need.

What about asking your husband's company if they can take you on for some bookkeeping work and training? At least here they know you and might value your attitude and professional manner in a way that people who don't know you wouldn't.

If you are a member of a club, have children at school, etc ask around. It may be that there is an accountant working on their own who would be willing to train you up for free in return for so many hours a week. Its amazing what strings you can pull when people know you!

You will clearly do a good job once you know what you are doing. Persevere and some opportunity will emerge somewhere.

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