Setting up own book keeping company

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Hi, I am just about to complete AAT as a fully qualified technician and myself and a friend are contemplating setting up a book keeping business. We thought we would design an advertisement to go in the local paper or something and just see if we get any response. Does anyone have any good tips or things that need to be in place legally when doing this type of book keeping set up. I have read on these forums somewhere about insurance, would we need to get this???

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Setting up own book keeping company

    Hi Soph - have a trawl back through both the members forums - lots of very similar questions, and lots of really good answers have been given before.

    But, yes you do need PI insurance, and the AAT MIP licence - also dont forget to register with HMRC as self employed.

    Good luck

    Claudia

    PS - Soph is a fab name - my eldest is called that :wink:
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Setting up own book keeping company

    Hi
    Setting up as a self employed bookkeeper will come under the AAT rules for Members in Practice, so if you are a member you will need PI Cover unless your fee income is very small. Have a look at the AAT scheme - you can get a quote online.
    http://www.aat.co.uk/members/display/store4/item58/
    This policy is only for AAT MIPs and they will only cover you for the work AAT includes in your licence.

    Its worth reading the AAT Ethical Guidelines to get a feel for what else is expected of you as a sole practioner.
    As for advertising, there have been many threads on the subject over the years. Generally I have found (and heard from others) that
    1) newspapers adverts work best if you can book a long run
    2) word of mouth usually brings in a good deal of work in the long term
    3) parish and other small local magazines are cost effective and worthwhile
    4) I might be worth approaching local accountants to ask for subcontracted work.

    Good luck

    Sheelagh
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Setting up own book keeping company

    Soph..

    Whereabouts are you based?
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Setting up own book keeping company

    Hi Dean,

    I am based in Hampshire. Would appreciate any advise you could offer??? :lol:
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Setting up own book keeping company

    Hi Soph,

    I haven't been doing this long myself so not really in a position to give you too much experience - but would just make a couple of observations from my first 12 months:

    Not too sure as to what scale you are looking to achieve but setting up with a friend has got to be a benefit which I would try and maximise in terms of sharing the workload but more importantly at motivating each other and building confidence - I found the first 12 months heavy going (emotionally !)and welcome the support that I have now - it really makes all the difference.

    Be very clear about how you want the business to develop and stick to your plan. Take on your first customers at a rate which gives you a foot in the door (ie the ability to provide glowing references) but then up the rate for subsequent customers. I made the mistake of being a bit too willing to do too much for not enough money. Decide whether you want to go for fixed rates or hourly rates

    Balance this with the fact that it takes a long time to get things off of the ground from a marketing point of view - that's where two of you working together will be of great benefit.

    Again not really qualified to say much more - good luck to you both.

    Oh - and don't look down !
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Setting up own book keeping company
    and don't look down

    :lol: that's the best advice i've heard!! I would have given up long time ago if i had.

    I don't really have anything to add other than I agree with everything that's been said, and good luck with it :)

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