New starter

TeeJay

Hi Everyone,

I have to admit to being a lurker on here for a few weeks, before I finally decided to write this post!!

I want some advice please - and please forgive me if you have answered these queries in previous posts!

I am in the process of starting up my practice - I think I will need a mentor for tax returns as since qualifying I have been working as a bookkeeper for a company and not had any experience in practice. I was looking to offering bookkeeping services and tax returns for sole traders, partnerships and small limited companies. I have my business cards printed off and have sent my MIP application into AAT. I have contacted 2 local practices about subcontracting out bookkeeping work and this sounds hopeful. I am planning on continuing in my job while building up the practice.

My queries are:

How long do you have a mentor for and how does it work?
I have no idea on costing my services - help???
Is there anything I have not thought of?

Apologies for the long post - just seem to be going in circles at the minute and worried about missing something. :001_unsure:

Tracy

ademoore

Hi Tracy,

Just some general answers, I'm sure others will add with their experiences,

Mentoring - for the few I mentor for, I am just here on the side lines for when they have questions or need advice on a situation! I am not around for them for a set period of time, just as and when they need me! Communication currently works via email, but telephone can be used too, if you live close to your mentor then it can be good opportunity to meet them face to face, however I wouldn't say critical.

Costing services - I researched around the local area, and when meeting potential new clients they were generally telling me what other quotes they had. I then figured in what I thought my service was, any key selling points I had over someone else etc and priced up that way! I always had in my mind "price too low and you risk a lesser reputation, price too high and you price yourself out of a job" - so I tried to find a midway where I thought I would be happy to pay!

Anything you havent thought of? Tricky one, possibly fixed rate or hourly? Software, you'll want to keep prices low, i use VT, Moneysoft and Ftax, and it perfectly suits my practice, however others it may not. Don't be afraid to step out of your comfort zone a bit as it could provide a benefit to go through a learning curve!

For me, the hardest part of starting my own practice was updating knowledge, there's always a client who is totally on the ball and asking questions about new things - or those clients that chat with their mates in the pub and heard xyz.
A lot of CPD I do online via general google searches, AAT branch meetings, CIMA meetings, HMRC documents etc. It's keeping the cost low but still making it all effective.

HTH in some way! Good luck!
Angela

TeeJay

Hi Angela,

Thanks for your response.

As far as software goes I am currently using 12Pay for payroll and looking at VT and TaxCalc.

As I have only just sent off my application for MIP can I start working on accounts for people or do I need to wait until I have confirmation back from AAT?

Sorry for all the questions!

Tracy

Monsoon

How long do you have a mentor for and how does it work?

As long as you need one. It's an informal thing.

I have no idea on costing my services - help???

Read my blog (in my sig)

Is there anything I have not thought of?

Probably - there's lots! Sounds like you're on the right lines though.

Good luck!

TeeJay

Thanks Monsoon - I can't help feeling like I'm getting out of my depth!! So worried I'm making a big mistake - what happens if I win no clients - urgh the worries go on and on...................

Moominyak

TeeJay wrote: »

As I have only just sent off my application for MIP can I start working on accounts for people or do I need to wait until I have confirmation back from AAT?

Tracy

Hi Tracy,

My understanding is that you should wait until you're registered (or licenced) by AAT before you start doing anything.

Speaking as somebody who recently went through the registration process (in Feb), they were pretty quick, and towards the end there were a just couple of email queries to sort out but then they emailed back the same day to say my registration had been approved (got the official letter the following week). Date I sent the application was 06 Feb, letter received is dated 29 Feb (and there was a bit of correspondence in between).

Have you gone straight for the licence, or just registration for now? I went for reg. as I hadn't done the 2 online assessments (although I have now), and the practice management CPD which I'm plodding through when I get the time!

They approved all the areas I'd asked for except Personal / Business Income Tax as I don't have much experience. The letter stated that I needed 6 months experience signed off by a mentor; they (AAT) have since confirmed that I can offer the service under my own practice, I just need to make clients aware of this (and obviously get the work checked by a mentor). It hasn't come up yet, but I'm hoping to convince clients by telling them they'll get two accountants checking over their tax return for the price of one! ;-)

I too am still working FT at the moment, but am putting feelers out for other work.

Am off to download the free version of 12Pay now... I was here looking for reviews of it, and frankly if it's good enough for Monsoon... I've been using the free HMRC thing for years (only 12-14 people at my workplace) and it's been fine, but thought I'd try something else if there's a chance I'll need some 'proper' software for my own clients! Am already using QuickBooks Pro which I love (except for the rubbish remittances). Fell out with Sage (and even got a refund out of them) many moons ago!

Let us know how you're getting on - I'm generally more of a lurker too, but it's always good to know there are people as terrified as I am ;-)

reader

Hi TeeJay

I'm currently in the middle of filing out my MiP application form; do you have any tips/pointers worth passing on?

Good luck with your new business

anniem

Hi TeeJay

I became an MIP about 18 months ago, but also work 4 days a week which ensures there is still a steady income.

On the plus side I now have about a dozen tax return/sole trader clients; I do regular book-keeping and VAT returns for some of these. I look after three partnerships which require book-keeping, payroll, year end accounts and tax returns. I am just taking on the village shop. At work I look after three businesses; book-keeping, VAT, year end accounts and payroll - I don't do the tax and this work is 'reviewed' by external accountants because the tax affairs of the family I work for are exceptionally complex.

Generally, I use VT Transaction +, 12Pay and FTax for my MIP work, although I have today downloaded BrightPay's free payroll software as I have one client with one employee and want to keep their costs down, BrightPay is free if you have 3 employees or less.

In the beginning I found it quite expensive to pay for all the subscriptions, insurance and software, but you can't do the work without it!

It is hard keeping up with the different rules and rates, but good software helps.

I find that this forum is invaluable, for help and support, I certainly couldn't manage without it. I have a 'mentor/friend' who is lovely, so knowledgeable and isn't too far away, so we have met.

Finding clients; most of mine have been through word of mouth. I actually have 4 separate clients who work together, which is great, but it does seem to keep me in my own comfort zone. I'm probably not as brave as I ought to be, but I don't have much spare time and also have two boys who need to fit into my life too. Because of this I have avoided taking on some more demanding clients. Some clients have found me through my website, but not many. Some clients have come through facebook and others were friends before they were clients.

I am about at the point where I could do with a 3 day job and am struggling to find time to study for an ATT exam in May.

Have you thought about a website? With www.wix.com you can set up a free website and there are other threads on here which give good links for websites too. It may be worth spending some of your pre-MIP time setting up a website.

Anyway that's just a few of my thoughts for you to ponder.

Good luck

Anna

villapb

Hi teejay
Hve you approached accountants in your area to do freelance work, for stuff thet dont want to do, good way of getting experience and learning the ropes of returns.

JamesB

anniem wrote: »

Hi TeeJay

Generally, I use VT Transaction +, 12Pay and FTax for my MIP work, although I have today downloaded BrightPay's free payroll software as I have one client with one employee and want to keep their costs down, BrightPay is free if you have 3 employees or less.

In the beginning I found it quite expensive to pay for all the subscriptions, insurance and software, but you can't do the work without it!

It is hard keeping up with the different rules and rates, but good software helps.

Anna

Out of curiousity how much roughly is the software you mentioned above including annual subs and also can you give a brief overview of what each software brings to the table!

I currently work full time and originally on the side prepared a couple of tax returns etc for friends for a bit of extra pocket money. Through word of mouth only I now have 20 sole traders and a limited company to look after so I am starting to wonder if software may be beneficial to me going forward (as opposed to using HMRC software).


It would be great to hear what the above software provides and whether it is good value for money. It appears VT, 12pay and FTax are the people's choice on here. I have only ever used SAPA, CCH Tax, Sage Line 50 and quickbooks when I worked in practice so have no experience on the others.

Regards,

J

anniem

These boxes have got smaller to write in, so I hope this makes sense.

Costs to think about, these are based on what I have actually paid in my first year:

Advertising £122 comprising:
Website £65
Domain £7
Business cards and postcard size advertising cards £50

Insurance
Professional indemnity Insurance £48

Software and reference material £544 comprising:
Reference books £110
VT Software £199
12Pay £55
FTax £150
Computer anti v eye rus £30

Stationery and printing £217
(includes ring binder and presentation bits and bobs that will last longer than a year, but I needed them to make work look professional)

Subscriptions £300, comprising:
AAT MIP Application £50
Email account £17
AAT subscription £112
ATT Student subscription £120 (for 5 years)

These figures don’t include computer, printer, filing cabinet which I already had. But I did also need to replace the printer which unexpectedly conked during the year.

This list just covers the basics, but it may help you.

These expenses came to £1231, my income was £2836 giving a profit of £1605. However I haven't included any of my telephone bills, fuel for running around seeing clients, electricity or postage and incidentals that we already had at home.

Don't forget that I do work a four day week elsewhere, so (thank god) this was not my only source of income.

I am getting more clients now, which helps, but the annual charges on things do have an impact; this year I will need to buy 50 SA100s from Ftax, even though at the moment I only have 12 tax return clients, what'll I do with the other 38? I don't know - hope that I get 38 more clients this year or 1 this year and 37 disasterous ones next year?????

anniem

I would add that for year two; the costs have been roughly the same, but income has increased to £4508.