MIP - How much experience do you need?

J PJ P Just JoinedPosts: 2Registered
Hi all,

I am in the early stages of setting up a small home based accounting business and I am considering the MIP scheme to provide me with backup and support while I do this.

My question is how much experience do you need to gain certification. I am fully qualified with the AAT and have two years experience working in a finance environment. I have experience of reconciliations, PL, month end journals ect, but none of this seems to sit well on the MIP application. Would I have sufficient experience to allow me to provide bookkeeping and tax return services to sole traders?

Sorry I am sure this question has been asked numerous times but I can't find any answers on the website.

Thanks for any replies in advance.

J P

Comments

  • AK002AK002 Font Of All Knowledge Posts: 2,492Registered
  • TigerTiger Feels At Home Posts: 63Registered
    Sorry to say it but based on this info I very much doubt you would get an MIP licence for anything other than perhaps book keeping....
  • PsychePsyche Well-Known Posts: 187Registered
    Probably not. I am in a similar boat myself and quite unhappy about it, as the AAT invited me to their MIP Information Mornings where the message of "Now you're about to finish your exams, you can become an MIP!" was quite clear. Only now that I have started a business, spent the associated funds, purchased the insurance, etc, am I finding out that it's the age-old story of can't get a job without experience, can't get experience without a job.

    I have been told however that I may be accepted as an MIP if I find someone -- and pay them -- to check my work for me. (STILL LOOKING FOR SUCH A PERSON, PLEASE!) Or if I work for a practice for free, which would be tough seeing as I still have a full time job.

    Good luck to you, and to me!
  • blobbyhblobbyh Font Of All Knowledge Posts: 2,415Registered
    With the greatest respect, would you be happy for someone to repair your expensive car who'd never actually worked on one before but only studied how to do it from reading a few text books and passing a few exams?

    Now let's assume you didn't even know and the person completely botched the repair job, wrecking your £10,000 motor. What would your attitude be if you afterwards discovered that not only was the person inexperienced but also licenced/recommended by a professional organisation to perform repairs despite lacking any practical knowledge whatsoever?

    Now swap the car for a £100k p.a. business employing two or three people.
  • taskeytaskey Font Of All Knowledge Posts: 1,800Registered
    i completely agree with blobby.

    The are many MIP's on this forum that have offered their services to check over work.

    Tracy
  • PsychePsyche Well-Known Posts: 187Registered
    Hi Taskey, could you point me in their direction? I haven't seen any, and my requests for such a person have not borne any fruit.

    I would not mind having my car worked on by a novice if their boss was going to check their work over before the car left the shop.
  • taskeytaskey Font Of All Knowledge Posts: 1,800Registered
    if you do a search for professional cover, there are loads of threads. maybe one might be helpful

    Tracy
  • PsychePsyche Well-Known Posts: 187Registered
    Hmm well I've just searched for professional cover, as well as checking work, and while there are many posts seeking it there weren't any offering it! Some of the seekers seemed to strike pay dirt, but others (including me) not. And no one in London oddly enough. I'm public transport restricted so a professional cover in Leicestershire wouldn't be much help to me!

    I will try the members directory, I have already e-mailed one MAAT who is a block or so from my house (that would be good luck!) and also there is a branch meeting in a couple of weeks time. The AAT MIP staff plug these forums but so far, two queries and no luck!
  • speegsspeegs Experienced Mentor Posts: 854Registered
    Go away Blobbyh you are also so right. Only joking. Blobbyh does have a point.
  • blobbyhblobbyh Font Of All Knowledge Posts: 2,415Registered
    speegs wrote: »
    Blobbyh does have a point.

    (Falls on floor in shock)

    You should know by now Speegs that I'm always right most of the time.
  • J PJ P Just Joined Posts: 2Registered
    Thanks for the replys guys.

    So am I right in thinking that you can only take on work the AAT certify you for? Is the level of certification specified on the certificate?

    Also, how long do you need to get work signed off for until you are considered competent in that area? Is this reviewed when you renew your licence, or can you submit further experience at any time?

    Can I also aak how good the telephone support is? I see a large number of MIPs come to these forums for advice. Is this because the phone support is poor, or it's just their prefered method of obtaining advice?

    Regards

    J P
  • GodalmingYellowGodalmingYellow New Member Posts: 5Registered
    J P wrote: »
    Thanks for the replys guys.

    So am I right in thinking that you can only take on work the AAT certify you for? Is the level of certification specified on the certificate?

    Also, how long do you need to get work signed off for until you are considered competent in that area? Is this reviewed when you renew your licence, or can you submit further experience at any time?

    Can I also aak how good the telephone support is? I see a large number of MIPs come to these forums for advice. Is this because the phone support is poor, or it's just their prefered method of obtaining advice?

    Regards

    J P

    As an AAT member, if you provide professional services through self employment, or through a company that you control, you have to join the MIP scheme.

    To join the MIP scheme you have to be able to show that you are competent to do the work, which includes having insurance, examination success, a history of CPD and experience in the work you intend to provide professional services.

    It is a judgement issue as to whether you have sufficient experience to competently provide professional services, and the judgement is down to the AAT MIP panel to decide. It would be difficult for anyone on here to say whether you might have sufficient experience, without having a detailed history of your work experience. It isn't just about the time spent gaining experience, it is also the quality of the experience that is important.

    All AAT members, need to be certain that AAT is regarded as a serious professional body, for the qualification to be meaningful, and so it is important that anyone seeking to provide professional services whilst a member of AAT, is competent to do so.

    I hope that is of some help, albeit maybe not the answer you were looking for.
  • PsychePsyche Well-Known Posts: 187Registered
    J P wrote: »
    Also, how long do you need to get work signed off for until you are considered competent in that area? Is this reviewed when you renew your licence, or can you submit further experience at any time?

    They told me that you need to get your work reviewed until you, yourself, feel confident. Which seemed a bit evasive, what's to stop me from saying right now "hey I feel confident to do taxes"?

    Further to Blobby's point, yes, certainly, from a customer's point of view you do want an accountant who is experienced. BUT, to carry on with the car analogy, if I had not a £10,000 car, but a £600 beater and a mate who was willing to charge me a much lower price than the dealership, then I might well be willing to give him my business to help him gain the experience he needs to charge full price in the open market. That's where I am now, certainly not a £100,000 business employing other people!
  • deanshepherddeanshepherd Font Of All Knowledge Posts: 1,809Registered
    Psyche wrote: »
    what's to stop me from saying right now "hey I feel confident to do taxes"?

    Professionalism? Ethics? Moral standards?

    There is nothing stopping you ignoring AAT altogether and setting up in business regardless. The worst AAT can do is kick you out but so what. That isn't going to stop you running your business as a non-member. There are plenty of non-qualified accountants making a perfectly good living.

    The real question is what sort of business do you aspire to be in the long term?

    One that fixes old bangers on the cheap, or one that provides a quality service for a decent return.

    AAT has enough respect to leave that decision entirely down to you.
  • PsychePsyche Well-Known Posts: 187Registered
    Professionalism? Ethics? Moral standards?

    Er, well, yes. That was the point. This is why I am still looking very hard for someone to check my work!

    I won't give up! Be warned! :)
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