where to begin

forever131
forever131 Registered Posts: 3 New contributor 🐸
in General accounting discussion
Hello

i would like to become self emloyed and start doing some book-keeping from home are just wondered if any one could give me some tips where to start?

I am MAAT and currently studying first year of ACCA would like to become member in practice, not sure what to do whether continue with ACCA or just stick with AAT and continue my CPD with them ? Any suggestions?

As MAAT can i prepare P&L(income statement) for company with 1M turnover

Comments

  • NeilH
    NeilH Registered Posts: 553 Epic contributor 🐘
    forever131 wrote: »
    Hello

    i would like to become self emloyed and start doing some book-keeping from home are just wondered if any one could give me some tips where to start?

    I am MAAT and currently studying first year of ACCA would like to become member in practice, not sure what to do whether continue with ACCA or just stick with AAT and continue my CPD with them ? Any suggestions?

    As MAAT can i prepare P&L(income statement) for company with 1M turnover

    Hi

    In general anyone can prepare the financial statements of a limited company (regardless of its size), the directors are responsible for signing them. However, companies above the audit threshold will be required to have an audit and include the signed audit report in the accounts. Often the same firm of accountants will prepare a company’s financial statements and conduct its audit, but auditing accounts and preparing them is not the same thing. In practice, the accountant/s who have prepared the statements will include an accountants report, but this is not intended to offer any assurance on the accounts but rather to simply state they were prepared based on the companies records.

    Banks, building societies and other third parties who need to review a companies accounts may have their own requirements of who should prepare them - however I often think that these parties don’t really appreciate that having an accountant prepare the accounts doesn't mean they are "approved" in anyway. However, most banks and building societies do recognise the AAT. Also, make yourself aware of the ACCA regulations on public practice. Generally as an ACCA student or an ACCA member without a practicing certificate the regulations mean you will be unable to do much beyond book-keeping, payroll and VAT. In the case of VAT, I believe you are only allowed to prepare the records and not sign the VAT return.

    Neil
  • stevo5678
    stevo5678 Registered Posts: 325
    Just to clarify, 'anyone can prepare the financial statements of a limited company', this is not actually true.

    If you are not regulated by a professional body you will need to be regulated by HMRC as an ASP - see link below.

    http://www.hmrc.gov.uk/mlr/getstarted/register/asp.htm

    EXTRACT FROM HMRC

    "Businesses that provide professional accountancy, tax or bookkeeping services are known as 'Accountancy Service Providers'. The Money Laundering Regulations require Accountancy Service Providers to register with HMRC if they're not already supervised by a professional body, unless they don't need to register for a specific reason."

    "What is an Accountancy Service Provider?
    For the purposes of the Money Laundering Regulations, HMRC uses the term Accountancy Service Provider to describe:
    auditors who carry out statutory audit work
    accountants who are in business to provide accountancy services to clients
    tax advisers who are in business to provide advice to clients about their tax affairs"

    I think that preparing financial statements falls within 'provide accounting services to clients'.

    To answer the original post, as an AAT MIP you are fine but the issue is with the ACCA. Technically you cannot provide services when an ACCA student or even member unless you have a practicing certficate but in reality there are many people who do such work 'on the side' should we say mainly from lack of research.
  • NeilH
    NeilH Registered Posts: 553 Epic contributor 🐘
    stevo5678 wrote: »
    I think that preparing financial statements falls within 'provide accounting services to clients'.

    You're right it does, but then generally anyone can register with HMRC! The only real assessment is for money service businesses, which financial statements would fall outside of. My obvious point being that qualification is irrelevant.

    Neil
  • stevo5678
    stevo5678 Registered Posts: 325
    Agreed, just clarifying for the OT :)
  • cheapaccounting
    cheapaccounting Registered Posts: 77 Regular contributor ⭐
    forever131 wrote: »
    Hello

    i would like to become self emloyed and start doing some book-keeping from home are just wondered if any one could give me some tips where to start?

    I am MAAT and currently studying first year of ACCA would like to become member in practice, not sure what to do whether continue with ACCA or just stick with AAT and continue my CPD with them ? Any suggestions?

    As MAAT can i prepare P&L(income statement) for company with 1M turnover

    I guess what you should do depends very much on your objectives, goals, aims and ambitions.

    Establishing these first will help work, experience and qualifications needs / aspirations fall into place.

    Good luck

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