1st Client!!

JoBratley

Help!! I have got my first client who needs a set of accounts completing for a small limited company. They have done the bookkeeping themselves so I have requested the backup to their workings. What do I do now???

Steve Collings

I'm not sure what you mean by "what do I do now?" If they've done the bookkeeping then you would prepare the Ltd Co financial statements. If the bookkeeping is of a high standard then the amount of reconciliation work you would do can be minimised. If it is not so good then you would need to make sure the control accounts in the balance sheet all agree and prepare working papers to substantiate the figures.

Kind regards
Steve

Steve Collings

You do not have to check every transaction but ordinarily on an accounts prep assignment the amount of work you do would normally depend on the standard of bookkeeping. If the bookkeeper clearly has no idea what they are doing, this will usually warrant more work being undertaken by the accountant (having agreed the extra work with the client). If the bookkeeping is of a reasonable standard then you would prepare a working paper file to substantiate the figures in the accounts i.e. do balance sheet control accounts, profit and loss analysis and such like.

burg

I may get shot for this but

Are you serious?!

Monsoon

burg wrote: »

I may get shot for this but

Are you serious?!

It's ok, if you didn't say it, you know BlobbyH would do!

Jo, I hate to say this, but how did you get your MIP licence without relevant experience which would have negated your asking this question entirely??

AK002

Oh dear. This is quite worrying tbh...

burg

I thought I would post again but be a bit more constructive this time.

If you really don't know what to do or where to go then this may not be the role for you.

Coming on here to ask advice on complex and controversial issues, unusual circumstances and simple things when your brain has gone a little is all ok, but really on how to even start is just taking the p*@#.

My constructive advice is to go back to the client and decline to act any further.

Then go and get a role in a practice for a few years so you can learn what actually goes on. Then it may be time to consider running your own practice and offering your services and advice to the public.

Best of luck

Monsoon

burg wrote: »

I thought I would post again but be a bit more constructive this time.

If you really don't know what to do or where to go then this may not be the role for you.

Coming on here to ask advice on complex and controversial issues, unusual circumstances and simple things when your brain has gone a little is all ok, but really on how to even start is just taking the p*@#.

My constructive advice is to go back to the client and decline to act any further.

Then go and get a role in a practice for a few years so you can learn what actually goes on. Then it may be time to consider running your own practice and offering your services and advice to the public.

Best of luck

+1 to this. Very well said Ian.

sdv

burg wrote: »

I may get shot for this but

Are you serious?!

LOL

We have had a very similar post recently.

for CPD the new ethics unit is a must for these types of help seekers!

Rinske

Monsoon wrote: »

+1 to this. Very well said Ian.

Same for me!

Another silly question from me then. (Please bear in mind, I only just qualified and am not a MIP and not sure I should become one.)

A friend of mine is self-employed. He has been for a while, but used to have a part time job next to it (I think it was about 15 hours or so). The friend is mainly working for a sole trader, over 95% I think. They share an office and my friend pays the sole trader rent, but all in all I can't see how he is not just employed by the sole trader. They apparently share an accountant, who according to my friend is not much good, because he keeps messing up.

My problem is, my friend asked me to do his bookkeeping or accounts, but because I already feel in serious doubt whether he should be classed as self-employed, I don't want to take it on.

Am I missing something very basic here or am I right to doubt the situation?

sdv

I don't think that the questions posted here are silly. Infact everybody learns from them. I have come across things that has surpised me and opened my eyes on some of matters I have not been updated on.

However, when some of the questions are posted where it is very obvious that the the OP clearly is totally incompetent, then it is very very risky to take on the assignment.

The ethics unit is an excellent unit that shows what the AAT's member's duties and responsibilities are. This should be studied as a part of CPD. There is an excellent inter active study material on the AAT website.

Rinske wrote: »

My problem is, my friend asked me to do his bookkeeping or accounts, but because I already feel in serious doubt whether he should be classed as self-employed, I don't want to take it on.

Am I missing something very basic here or am I right to doubt the situation?

Test for self employed. See the HMRC link here


As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

•Do they have to do the work themselves?
•Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
•Can they work a set amount of hours?
•Can someone move them from task to task?
•Are they paid by the hour, week, or month?
•Can they get overtime pay or bonus payment?




If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:

•Can they hire someone to do the work or engage helpers at their own expense?
•Do they risk their own money?
•Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
•Do they agree to do a job for a fixed price regardless of how long the job may take?
•Can they decide what work to do, how and when to do the work and where to provide the services?
•Do they regularly work for a number of different people?
•Do they have to correct unsatisfactory work in their own time and at their own expense?

Rinske

Thanks for this SDV!

And reading that and knowing that I didn't know where to find it on the HMRC link is a good reason not to accept the work from him for me!

JoBratley

Thank you for your reply Steve C. This is the first time I have dealt with a client who has done their own bookkeeping. I wanted to keep my clients costs down by not charging them to check everything they have claimed for. I will be a little more precise with my question if I choose to post again!

noodles

Jo - dont be put off by the comments you received. Taking on your first client is very daunting and it does make you question what to do no matter how trained you are. If I was you I would put the hours in to make sure that you do a good job but only charge the client the cost of doing the accounts at a reasonable number of hours. This way they will be happy with the fee and you will have gained experience which is critical. The 2nd client is always easier! Good luck and do keep posting.

burg

Hi Jo,

Sorry if you are offending by mine or others postings. However it is a forum and opinions are often given which can vary widely.

I'm sure you can understand it is somewhat frustrating when someone posts such a simple question as yours originally sounded. It almost makes a mockery of the AAT and the practising license you have been issued.

A first client is always daunting but knowing where to start and even what to do to complete a set of accounts is pretty basic.

I do hope you learn from your experience and that your client gets a good service.

I also hope you continue to post as this forum needs active members to continue. No matter what you post I'm pretty sure there's always going to be a difference of opinion some of which you may not like.

KPrice

Hello to everyone on this thread
I was very suprised at some of the answers to Jo's question. I came on to this thread as I thought there may be something useful for me. I have recently completed my AAT qualification but have not yet earned sufficient working experience for full membership. I am employed part time as a book keeper with sole responsibility for all aspects of the role (and reduced the accountant's bill by £1000 over my predecessor). I have been thinking about doing some self-employed work and was asked just last night whether I would be able to help a friend's husband with his book-keeping. I asked some questions which my friend was not able to answer so I need to contact her husband to discuss his requirements. I am quite confident about the technical aspects of book-keeping and am sensible enough to decline if I think I am not competent. However, Jo's question "what do I do now" struck at my heart. Can anyone direct me to a "check list" of questions / information I need to ask my friend's husband. (I have found the AAT's general letter of engagement, etc.)

Mark 99

In the same position

I'm just starting for my very first client too, and it does seem a daunting prospect. My client is a small limited company, whose affairs were previously looked after by a very expensive chartered accountants firm. I've been a full member of the AAT since 2001, and have experience in various roles, but working in practice is new to me. I just got my licence a couple of weeks ago.
Having done the academic side of the AAT qualification and been awarded the licence, I know we must have most of the theoretical knowledge. I have been quite open with the owner of the company about her being my first client, and made clear that things may be a little slow to begin with, but I am confident that, taking things step by step, and getting technical support when needed, I'll do a thorough job, and I think Jo can be too.
Good luck with it!

sdv

KPrice wrote: »

...................I am quite confident about the technical aspects of book-keeping and am sensible enough to decline if I think I am not competent.

being a MIP is not only dealing with technical aspect of bookkeeping. There are so many other things that you have to consider and and be competent to be able to deal with.

for exapmle: when a client asks you about employment related issues, will you be able to deal with them? these are not taught on AAT L4 courses.

Recently LONDIA posted abour director's return to HMRC, and clearly that post has also highlighted that these issues are not taught on AAT courses.

In the same post, it has been righly suggested that you can only get to know of these issues when you have practically worked in a practice and learnt these issues from work experience.

KPrice wrote: »

................... Can anyone direct me to a "check list" of questions / information I need to ask my friend's husband. (I have found the AAT's general letter of engagement, etc.)

The fact that you have to ask for a check list of questions idicates to me that you do not have experience in dealing with clients before. I would be very weary in taking up the assignment if I were you.

The best way to learn this is to go and work for an accounting practice.

Mark 99 wrote: »

I'm just starting for my very first client too, and it does seem a daunting prospect. My client is a small limited company, whose affairs were previously looked after by a very expensive chartered accountants firm. I've been a full member of the AAT since 2001, and have experience in various roles, but working in practice is new to me. I just got my licence a couple of weeks ago.
Having done the academic side of the AAT qualification and been awarded the licence, I know we must have most of the theoretical knowledge. I have been quite open with the owner of the company about her being my first client, and made clear that things may be a little slow to begin with, but I am confident that, taking things step by step, and getting technical support when needed, I'll do a thorough job, and I think Jo can be too.
Good luck with it!

Again the same situation as above.

Be careful when you take on these assignments. Make sure that you don't fall into the fire from the frying pan!