MIP advice appreciated please

Paul C
Paul C Registered Posts: 193 Dedicated contributor πŸ¦‰
Hello all,

My MIP license has been approved (big smiles) so I would really appreciate some thoughts on the following.

(Licensed in:Bookkeeping, Financial Accounting and Accounts Preparation, Management Accounting, Budgeting and Forecasting)

1) What is best to tell prospective clients ( fingers crossed ) about my current clients - I don't have any! ........ I have done some private work for a charity and a large trade union locally. Plus a huge amount of management accountant work ( 22 years )in the Health Service and Local Government ( including several trading units, residential homes, medium sized factory etc).

2) Is it best to buy a laptop initially? I have planned to use my good pc at home. Will clients expect me to have one?

3) Is it ok to go in with an hourly rate at first and not fixed prices? My experience with sole traders is limited so its hard for me to judge "that should take 4 hours" etc

Many thanks all
Paul

Comments

  • burg
    burg Registered, Moderator Posts: 1,441 mod
    Firstly congratulations on gaining your MIP license.

    Firstly I notice you are not licensed for taxation. What are your intentions, to offer bookkeeping services? IT is very unusual to offer accounts prep and not taxation work.

    1. Prospective clients tend to very rarely ask about your existing clients. If they do then just be honest and tell them you are a young practice and they are amongst your first clients. Explain to them your experience and I am sure you will be fine.

    2. Home PC is fine. I don't take a laptop to meetings just pen and paper.

    3. If you are offering bookkeeping only then it is most common to have this on an hourly basis.
    If however you are offering final accounts then I would recommend giving a ball park figure. Clients don't like the unknown. If you end up losing then you can increase next year and you will learn to be a better judge of how long it may take you.
    Regards,

    Burg
  • Paul C
    Paul C Registered Posts: 193 Dedicated contributor πŸ¦‰
    Many thanks Ian - I have not applied for tax as in all honesty I have no work experience in it. I think I'll go on the AAT full day course to get me up to speed & then register.

    I really appreciate the other advice as well. Its gives me added confidence when its all so new.

    Thanks Paul
  • Paul C
    Paul C Registered Posts: 193 Dedicated contributor πŸ¦‰
    .......and if any one else has got any top tips on MIP it would also be appreciated.
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor πŸ§™β€β™‚οΈ
    Just out of interest do you only have to do a full days course on tax to be able to be registered as an MIP for tax work?
  • Paul C
    Paul C Registered Posts: 193 Dedicated contributor πŸ¦‰
    I personally plan to do the course to get a good overvew of what's involved. And make a decision from there - see what's needed on top of my studies to date.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor πŸ§™β€β™‚οΈ
    Is it a refresher course having taken the 2 tax modules at AAT but not having any practical experience? Or is it a course instead of the modules?
  • Psyche
    Psyche Registered Posts: 187 Dedicated contributor πŸ¦‰
    Hi and good luck! I've been in practice for a year, just after qualifying so you have a tough road but it does get easier in the end.

    1. I have never had any prospective clients ask me how many clients I have. However, what I did was start out with clients who are already known to me personally, and I have given them a good rate in return for patience with my inexperience and giving me the opportunity.

    2. I have a laptop but rarely take it with me, pen paper and calculator generally suffice when you are starting out. If you have established clients it's good to be able to take your under-construction spreadsheets with you. (And it's a wholly allowable business expense :)

    3. It depends on the nature of the work - for bookkeeping/payroll I charge an hourly rate, but for an ongoing contract which includes year-end and quarterly accounts, I estimate how many hours each aspect of the job will take over the year, add it up and get a monthly charge, and have them pay by standing order. My clients are paying between Β£45 a month for quarterly and year end accounts only (IT contractor) and Β£190 for a limited company with quite a bit of bookkeeping and weekly paid staff. But I would charge a bit more for new clients who weren't personal acquaintances.

    As for tax training I really don't see how you could learn everything about tax in a day! There is a LOT to learn. You might want to take the Business Tax and Personal Tax modules as distance learning.

    Good luck!
    ~Psyche
  • EmP
    EmP Registered Posts: 1
    Hi everyone! I'm completing my application for MIP and am having trouble working out what to write on the Practice Management page. Any suggestions/advice please?!
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor πŸ§™β€β™‚οΈ
    Why are you having trouble?
    Do you work in industry, pubic sector, charity or practice?
    Do you know what practice management is?
    I'm sure your job must involve procedures, managing multiple tasks, deadlines, etc.
    The more information you provide, the easier it will be for people to help.
  • TreadStone
    TreadStone Registered Posts: 280 Epic contributor 🐘
    EmP said:

    Hi everyone! I'm completing my application for MIP and am having trouble working out what to write on the Practice Management page. Any suggestions/advice please?!

    Why not start a new thread instead of tagging onto one that's over 7yr old ?
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