Self employed?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,<BR><BR>Are any of you undertaking private work? If so how did you get into it, and any tips/hints on how I could get started?<BR><BR>I'm beginning to seriously think about it, but would love your input!<BR><BR>many thanks,<BR>Mark.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi <BR><BR>I am not self employed but have owned my own business in the past. Try and go to these business enterprises that are available though local authorities. I found them very useful. You need to think what market you want to aim for , how, where, pricing. <BR><BR>Nothing puts people off more that someone who is trying to bumble their way through trying to sell your product without knowing what it actually is.<BR><BR>Important: be organised, book keeping someone's books is one thing but don't forget your own?? you are asking for problems.<BR><BR>Terms and conditions of your service: What you do and don't do. When they must pay by and how.<BR><BR>Let me know if you want any other info<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi, I started my own book-keeping business 18 months ago and I've got a full capacity of work now. After taking Pitmans book-keeping exams, I started with joining the Institute of Certififed Book-keepers. If you haven't taken exams with them you need to show that you've passed the equivalent. Their website is really useful and gives you hints on how to set up your own business. Their website address is www.book-keepers.org. You can get a Practising Certificate which allows you to use their logo on letterheads, etc. It just gives a more professional touch. I sent mailshots to local companies, ie. builders, accountants and got 1 client from that. Then I advertised in the local paper and got a couple more clients from that. One was from an accountant who also works from home and so gives me all her client's books to do. Gradually the business builds up. It probably took about 1 year to get a good level of work. You'll also need to contact the Inland Revenue and register as self-employed for tax and NI, etc and also get a personal indemnity insurance. Being self-employed is so flexible and it's easier to fit it in around the family. Let me know if you need any more info.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi,<BR><BR>Thanks so much for your response. That really helpful information. Do you do the book-keeping through computer software (sage/quickbooks) or on excel spreadsheets. Also do you go into the companies and conduct the work - or do you take it away and work at your own pace? Sorry.....last question for now, how did you figure out a sum to charge - and is it an hourly rate??<BR><BR>Thanks for taking your time - much appreciated.<BR><BR>Rgds,<BR>Mark<BR>(mark@musicalmark.com)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Mark<BR>I use Sage or Excel spreadsheets depending on how big the business is and if the client has a special preference for Sage because their Accountant wants them to use it. The only problem with Sage is that Sage charges you a licence fee for each company that you use which you then have to charge on to the client or they provide their own copy. Usually for small sole traders Excel is adequate. I have one client that I work on-site for 1 day a week. The rest I do at my own pace at home and the client usually drops their paperwork off to me either quarterly or monthly. You may find that clients with premises would want you to work on site but you'd probably get a mix. I charge a basic hourly rate for all clients whether I'm using Sage or Excel. I've found that advertising in the directories, ie. Yellow Pages, doesn't work for me as there are so many and it is very expensive. I'm happy to give you any more information you need. <BR>Regards<BR>Roz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi<BR><BR>I did use Sage accounts but that was just for one company, I''m sure you could use muilti companie on sage line 50. It doesn't really matter if you are doin work away from your own space, just make sure you keep track of costs that you incur while you are on the road.<BR><BR>As for pricing, the best thing to do is phone round a few of your local book keepers in the yellow pages and pretend you are look for someone to do your books. It will give you a pretty good idea what to charge. At the end of the day you don't want to under charge or over charge. Other elements that may change your pricing is how far you need to travel. You don't want to charge £25 per hour when you have to travel 1 hour to get to the place you need to do the work.<BR><BR>Advertising in local papers or free papers it best, as a decent advert in Yellow pages will set you back £700+ and there is no guarantee you will recoup that either. Try local supermarkets and shops too.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Many thanks Petrolmonkey - that's useful stuff!<BR><BR>Ta,<BR>Mark.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi<BR>First time on this forum so just getting the hang of it! Im thinking too of doing self employed book keeping but still on intermmediate. Would it be more advantageous to complete the 3rd level first? Also when you first started doing this, had you had any experience of doing other companies "books" or was it all just learn by experience. Im soon to be made redundant and have been working for my father but it was all very basic and easy! I was just using sage instant accounts and just know the basics of this but ive used Line 50 in college. So do you think book keeping is easy to get into once you have done a few?<BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi <BR>I was working for a company part-time before I was self-employed and still work for them now on-site for one day a week on a contract basis so I already had experience of their books. Also one of the first clients I had was an accountant which is really useful because she already had her own way of doing her clients' books so I just carried it on and learnt from that. As you say, once you've done one they are all pretty similar. A mailshot to small accountants would be a good way to start finding work. They often haven't got the time themselves to do the book-keeping side. <BR>I started my business before I even started Intermediate so I don't think it's important to do Technician level first. Having said that, I do stress to anyone that contacts me that I only do the book-keeping and do not produce final accounts; they should use their own accountant to do this. You'll still find a lot of people who are just interested in finding someone to keep their books in order because they already have an accountant. Sage Instant Accounts is fine for the sole traders, etc. If you work in a company you'd probably find that they use Sage Line 50 Accountant or Financial Controller. <BR>I think it's a great way of working but, if you can, you should also find a company or an accountant to work for part time as well as doing private work so you've got the backup and can also learn as you go along. <BR>Hope that helps you. <BR>Roz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Roz<BR>Thanks for the info. The more advice you get the better. With book keeping though do you just keep a record of the day to day transactions and do you do VAT as well? Sage though actually does VAT for you and it will do your P & L and Balance Sheet which then has to be passed on to the accountant. Do you find that your clients expect different thing?<BR>Thanks Anne
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Anne<BR>I just do the day to day transactions, bank reconciliation, the VAT Return if required and also payroll. Some are done on Sage, but mostly on Excel. When I get a new client I try to liaise with their accountant just so I know what they want. As long as the client gets what he needs for his accountant, I don't usually get any requests for anything different. Also, the rates I charge are for book-keeping only, which are much, much less than what an accountant would charge. <BR>The reason I'm doing AAT is so that after finishing Technician level (hopefully!) I will be able to provide more services, ie. personal taxation. <BR>Roz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Roz<BR>Thanks thats great. Will start looking into it after these exams!!<BR>Will be in touch if i think of anything else.<BR>Thanks<BR>Anne
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Roz,<BR><BR>Just caught up with the thread, the information that you are giving is just what I need! I'm going to be made redundant 1Jul - so will do my AAT exam 14June...then start looking around and sending out some mail shots. I have also got myself on a temping list with RK accountancy - so hopefuly will get some more experinece that way.<BR><BR>As I said many thanks for all your assistance, greatfully appreciated!<BR><BR>Mark.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Roz<BR><BR>Picking your brains again!! Did you know how to set up Sage from scratch as i only know how to use it. If so did you learn this on your own or not. Likewise with Excel did you set up the template your self. I could easily do this I think but it would be good to have a look at somebody elses as well. I think once you have sussed the set up process it should be asy enough. Any suggestions please?<BR>Thanks<BR>Anne
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Mark<BR><BR>Good luck. I'm happy it was of some use to you.<BR><BR>Roz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Anne,<BR><BR>When you set up a new company on Sage you can either use the standard chart of accounts or you can select a particular business area, ie. medical, accountancy, etc. If you use the standard chart of accounts, it's probably easier to tidy up the nominal codes by deleting the ones you won't use as there are so many. If you let me have your email address I can email you a sample of a spreadsheet.<BR><BR>Roz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Self employed?

    Hi Roz<BR><BR>My email is gymanne42@f2s.com <BR><BR>Thanks for the help hear from you soon<BR><BR>Anne

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