Doing the Accounts of a small business while studying!!!

Smilapee

I have just past my Level 3 and i am starting Level 4 September, i wanted to know can i do my cousins accounts for his small business, and is there certain things i cannot do until im qualified, Also i wanted to know can i set up an accounting business when i complete level 4 or is it best to do ACCA or CIMA 1st, and where could i get info about what i need to do if i was to do the accounts of a small business, i know what i have learned but in practice how would i know what i should be doing

NeilH

Hi

Providing accounting services whilst a student is in general not a problem - other than restricted work (audit, insolvency, financial service) pretty much anyone can provide accounting services.

What you need to be aware of are the regulations of the professional body you are studying with as they will have their own rules and standards. AAT and CIMA allow their students to carryout such work providing they do not refer to their connection with the body they are studying with (e.g. you couldn't call yourself "Joe Bloggs, AAT Student"), ACCA on the other hand have quite stringent rules. With ACCA you can do general book-keeping to TB, VAT and payroll but you can't (as the ACCA rule book puts it) produce anything that a third party may place reliance upon, this would include company financial statements, income reports for banks etc. The ACCA rules apply not only to students but also members without a practicing certificate.

Once you qualify for membership, AAT and CIMA rules would require you to become a member in practice, there may be a few exceptions to this rule. You also need to be aware of registering under money laundering regulations (MLR). AAT, CIMA and ACCA members are covered by virtue of being members of their professional body, but this “cover” does not include students and you would therefore need to register directly with HMRC.

Neil

Smilapee

So can i call myself an Accountant? and if i was asked as to what qualifications i have, can i say i have AAT level 2 & 3
or is there to be no mention of AAT at all, or is it that i cannot mention that i am presently studying AAT level 4, but o can mention AAT level 2 & 3 has i already have them

NeilH

Hi

Anyone can call themselves an accountant, and I believe you can in general tell people what qualifications you hold or are studying towards but you probably wouldn't be able to put "AAT" on business cards, adverts or imply in anyway that you are a member or somehow "backed" or endorsed by the AAT, CIMA etc. You may have to refer to your qualification by title alone - e.g. Level 2 Certificate, and not mention AAT. You also need to be sure that you don’t make out you are more qualified than you are and that you only undertake work within you range of personal competence.

When I looked at this a good few years ago, I emailed the AAT and got confirmation so you'd be advised to do the same before making a decision.

Neil

Smilapee

Thanks for your advice i will contact AAT with regards to additional info