Letter of Engagement

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MissKCB
MissKCB Registered Posts: 7 Regular contributor ⭐
in General discussion
Hi everyone

I am just trying to put my letter of engagement together to complete my application to become an MIP and start my own bookkeeping company. Now I have looked at the template, I'm concerned I have included to the incorrect services in my MIP application.

I have applied to offer bookkeeping, management accounting and VAT. However on the LoE template, the management accounting service seems to be more appropriate for a fully qualified accountant. I had planned to provide monthly bookeeping services, and produce monthly accounts to show my client a comparative report to allow them to see where their money is going, and the details of monthly profit they are making, which would be purely for the business owners information, not to be used for any tax submissions etc.

Should I resubmit my application to take out the management accounting service?

Thanks :)

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  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
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    MissKCB wrote: »
    Hi everyone

    I am just trying to put my letter of engagement together to complete my application to become an MIP and start my own bookkeeping company. Now I have looked at the template, I'm concerned I have included to the incorrect services in my MIP application.

    I have applied to offer bookkeeping, management accounting and VAT. However on the LoE template, the management accounting service seems to be more appropriate for a fully qualified accountant. I had planned to provide monthly bookeeping services, and produce monthly accounts to show my client a comparative report to allow them to see where their money is going, and the details of monthly profit they are making, which would be purely for the business owners information, not to be used for any tax submissions etc.

    Should I resubmit my application to take out the management accounting service?

    Thanks :)

    I don't think you need to prepare a LoE in order to apply for MiP status- when I applied I didn't provide a LoE and AAT still granted me with licensed status.

    Re: Management accounting, I think you're right, management accounts could be used by third parties, e.g. banks, to determine whether or not a loan should be granted to the business. If you don't have much financial accounting experience I would have thought that you wouldn't be granted a management accounting license.

    However given that you have applied for management accounting you might as well leave it in your application and let AAT decide if you're competent. The AAT will study your application carefully and only license you in management accounting if they feel that you have provided enough evidence of being competent in management accounting.
  • MissKCB
    MissKCB Registered Posts: 7 Regular contributor ⭐
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    reader wrote: »
    I don't think you need to prepare a LoE in order to apply for MiP status- when I applied I didn't provide a LoE and AAT still granted me with licensed status.

    Re: Management accounting, I think you're right, management accounts could be used by third parties, e.g. banks, to determine whether or not a loan should be granted to the business. If you don't have much financial accounting experience I would have thought that you wouldn't be granted a management accounting license.

    However given that you have applied for management accounting you might as well leave it in your application and let AAT decide if you're competent. The AAT will study your application carefully and only license you in management accounting if they feel that you have provided enough evidence of being competent in management accounting.

    Thanks for the advice. I'm preparing a LoE because I had already sent my application, and they replied saying I needed to provide the LoE to all clients as well as CPD for the last 12 months, and the next 12 months. I might speak to them tomorrow before carrying on, as Im sure I checked before I sent the application and didnt need to do either. It's such a confusing process - all I want to be able to do is provide a bookkeeping service for local small businesses, I know I dont have enough experience to do the work of a licensed accountant (i.e. end of year accounts)

    Thanks again

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