Setting up as MIP

Glynis

I have been trying for months to get a job in a practice but it's not happening so I thinking will take the plunge and go as a MIP. I am temping at the minute and I find agencies a nightmare to deal with so think now it's time to do what I want to do.
I wondered how quickly you can get clients and earn a good living out of being MIP?

Anne Boleyn

Mip

Hi Glynis

How quickly you gain clients is very difficult to foresee. A lot will depend on how much you market your business and getting your name out there. Also how flexible you wish to be and the type of client you are hoping to entice. Also the different services you are going to offer, you might decide to specialise or do everything.

If you go into MyAAT there is lots of information about the MIP scheme and what is required.

Monsoon

What areas are you looking to practice in? Remember, you will only get a licence in areas where you have enough experience.

It's taken me years to make a decent living, and I'm still not there yet. For the first few years I barely scraped by. If i got a job equivalent to my skill and experience level, I would be on more money, for sure. That said, I prefer the freedom of working for myself vs an employer, so it's about job satisfaction as well as money. Also remember everyone's definition of "making a good living" will differ.

When you work for yourself you get out what you put in. The first thing to remember is that your are running a business; you can't just be an accountant, you have to approach it as a business venture.

How quickly your practice grows also depends on where you are: this will dictate the level of competition and therefore how much you may have to spend on marketing.

Anne Boleyn

Mip

Hi Glynis

You do need to be aware of the ACCA's very strict rules regarding their student members. As far as I remember a student member of the ACCA you can do bookkeeping upto trial balance but not accounts. I'm sure others will correct me if I have mis-remembered.

Glynis

Thank you for your advices.
As I have AAT I plan to operate through that not ACCA. Surely they can't stop you practicing as an aAT MIP.

Bluewednesday

Yes they can!

As Anne Boleyn says you can only do payroll, VAT and bookkeeping to trial balance. No tax returns, no final accounts and no mortgage statements.

If you want to offer those services under AAT then you will have to resign your ACCA membership.

AK002

If I remember rightly you have NO practice experience at all?

I'd strongly advise not setting up as a MIP with no experience.

RAS

As Blue Wednesday mentions the ACCA rules are very strcit. If you are a student member of the ACCA, you are very limited to what services you can offer without a ACCA Practising Certificate, regardless if you have a AAT MIP cert or not. I think the reality here is that unless you want to stick to bookkeeping etc, then to register as an AAT MIP you will have to resign your ACCA student membership. If you do not have sufficient practical experience it is probably unlikely you would get a ACCA Practising Certificate just by passing the exams, not sure but probably same would apply to the AAT scheme as well.

Gem7321

Glynis as the others have said with your ACCA membership you will only be able to do bookkeeping up to trial balance and without any practice experience I imagine this will be all the AAT will allow you to do. But it's a start! By being a bookkeeper you come into contact with a lot of practice accountants, if you can build a relationship with them then who knows maybe they would offer you a job or at least throw some extra bookkeeping business your way.

Good luck.

Monsoon

I completely forgot you are a student member of ACCA (not sure how!). The others are 100% right, you will only be allowed to do bookkeeping to TB, nothing more, not even a simple tax return. Thems the rules.

However, done properly, a bookkeeping business can be both rewarding and lucrative, so it shouldn't be a bar in and of itself to setting up.

GinnyBee

Glynis wrote: »

Thank you for your advices.
As I have AAT I plan to operate through that not ACCA. Surely they can't stop you practicing as an aAT MIP.

As several people have said they most certainly can!!! I had to make the choice a few months ago between setting up as an MIP fully doing accounts etc OR continuing with ACCA. Was an either/or decision, ACCA are very strict about only going up to trial balance stage! Believe me it's not worth the risk of disiplinary action.

However, this is so very true -

Monsoon wrote: »

done properly, a bookkeeping business can be both rewarding and lucrative, so it shouldn't be a bar in and of itself to setting up.

PGM

Is it worth continuing with ACCA, or focus energies in the new business?

dantray

Not that I'm suggesting anyone ignore's the rules even in the slightest but could someone please tell me how ACCA would learn (other than if you told them yourself) that a student is carrying out services that go against their regulations?

stevef

Accountants are supposed to act ethically.

burg

One as pointed out you have a duty to act ethically and professionally. Second some people decide to tell clients or even put it on their websites.

Cutting a long story short - I was an ACCA student when I decided it was not for me and wanted to do what I had always wanted, run my own practice. So I duly resigned informing them of the reasons. I had no response other than I was no longer a registered student member.

If it is a decision you want to take then ensure you consider all the possibilities and that you don't regret your actions. I never have but it won't work out that way for everbody.

Anne Boleyn

Acca

Hi

I was also in a similar position to Burg above, I was an ACCA student member and had passed about half the exams but due to a change in my personal circumstances I decided that I would like to be a MIP and so resigned my membership of ACCA. To get the accreditation from ACCA it isn't just passing the exams but you have to have post qualification experience at an ACCA approved employer. I realised a little late that even if I passed the exams it was highly unlikely that I'd get the accreditation.

It was a tough decision but I haven't regretted it.

deanshepherd

Glynis

How about joining this franchise.

Sounds right up your street.

stefanboro

I would like to dispell two myths:

1. You don't need 3 years of post qualification experience but just 3 years of experience - before, during or after passing exams.

2. You don't need to get the experience with an ACCA registered employer.

Source:

http://www2.accaglobal.com/students/acca/per/

That being said the comments regarding work to TB are correct.

RAS

I think the ACCA rules keep changing. Certainly when I got my ACCA Practising Certificate you had to have 3 years relevant experience 2 of which had to be post passing the exams. Would be typical if that has now changed and all the 3 years experience could be before passing the exams.

burg

@Stefan - The link you posted was for practical experience to be accepted for entrance as a member. There is a separate requirement for obtaining a practicing certificate but I cannot find a link. It used to be 3 year practical experience with at least 2 years post qualification (preferably in a senior position) and to take place in an ACCA approved employer. As usual from years ago the ACCA site is still extremely slow and pages won't load. This is the best I can get at the moment http://www2.accaglobal.com/members/professional_standards/prac_info/practisingcertificates/

stefanboro

burg wrote: »

@Stefan - The link you posted was for practical experience to be accepted for entrance as a member. There is a separate requirement for obtaining a practicing certificate but I cannot find a link. It used to be 3 year practical experience with at least 2 years post qualification (preferably in a senior position) and to take place in an ACCA approved employer. As usual from years ago the ACCA site is still extremely slow and pages won't load. This is the best I can get at the moment http://www2.accaglobal.com/members/professional_standards/prac_info/practisingcertificates/

Ah you may be right!

burg

I think so but I can't prove it at the moment. Plus it may have changed since I was aware of the info...?

NeilH

Hi

It's also worth bearing in mind that self-employed work experience won't count towards the general work experienced requirements, although sub-contract work can (or at least used to). I assume from this that self-employed work experience won't count towards a practising certificate either.

Neil

mc25

You definitely need to decide which way to move forward carry on with ACCA or give it up and start your MIP. If you start by subcontracting and work your way, that might help. Approach a few local accountants you never know it might be your day and you might get one who will be willing to give you some work. Good luck.