Advice Needed

husmaz12

Hi all, i just have a few questions with reference to starting a book-keeping/accounting business.

-Do you have to register the business for tax etc immediately?

-Is it better to be a sole trader or ltd company?

-And what should i expect from any clients? will they just give me some invoices/ orders and expect me to do their accounts up to Profit and Loss/ Balance sheet?

-What is meant by "month end reporting"?

-How much should i charge?

Obviously it is just a developing idea for now so i would be greatful for any advice.

Kind regards

Vonni

In response to your questions -

Yes you have to register with HMR&C within 3 months of commencing in business failing which there are penalties

It's entirely up to you if you are a sole trader or a limited company - you still have responsibilities as a director but you may have some degree of protection if you're a limited company. Initially it may be unnecessary if your business is fairly small but if you start to get bigger there may be a case for going the limited route.

What you get from your clients should hopefully be exactly what you ask for - they are required to keep accounting information / documentation in accordance with Revenue requirements - it's up to you as a bookkeeper to guide them as to the information you need to prepare an accurate record of their business transactions and ensure that that meet requirements for HMR&C. In reality clients often do not have all the documentation you require - part of your role is to educate them if you can!

If you're a bookkeeper there may not be a requirement to produce accounts to TB or produce P&L or BS - but if you're providing accountancy services obviously there is a requirement.

Month end reporting are the reports that you print off from your computer or other accounting records and would quite possibly be a TB or P&L / BS to produce management figures or accounts.

Charges depend on the level of your service bookkeeping is approximately £15.00 - £25.00 per hour accounting will be dependant upon the level of your skills.

Remember even for bookkeeping services you need to register with AAT as a MIP and obtain a licence as well as meeting the MIP CPD requirements. Additionally you need to be registered with AAT or HMR&C under the Money Laundering Regulations, have liability insurance and be registered with the Information Commissioner for data protection.

I hope you achieve what you are hoping - good luck for the future.