Bookkeeping Qualifications - is it worth it?

orangeslimes

I am thinking of trying to earn a bit of extra money by doing book keeping for people.
I have seen firsthand the work of many bookkeepers employed by small businesses and none have done a decent job. (i.e. haven't checked the bank statements agree, haven't checked things add up)

Is it worth trying to get some sort of bookkeeping qualification to prove I have relevant skills? Or would that be a waste of effort?
I have experience and the ability to do bookkeeping properly (but probably lacking in useful references at the moment)

Savvy_Sue

I think without either references or qualifications you're going to struggle to persuade anyone to take you.

Where did you get the experience? Can you not get a reference that way?

Also do you have experience of using any of the commercial packages?

There is a shortage of decent bookkeepers, I can confirm that!

ukbill69

I honestly think you dont need this, I would show the companies your skills say on a free basis and let them see and point out where they are going wrong. I think you might get work.

orangeslimes

Savvy_Sue wrote: »

I think without either references or qualifications you're going to struggle to persuade anyone to take you.

Where did you get the experience? Can you not get a reference that way?

by working for a very small accountancy firm. possibly could get a reference but work for a relation which makes it not so useful.
Other people I could ask from my other jobs and volunteering can't comment specifically on my accounting ability.

Also do you have experience of using any of the commercial packages?

some of them- yes. (although not of Sage which is the most common I think). My plan was to aim more for the small business end of the market though where it is just as easy to use Excel.

There is a shortage of decent bookkeepers, I can confirm that!

Based on my experience it seems to be the case -every single time I have done work on accounts for clients who have employed bookkeepers I have had to spend ages going over the bookkeepers work and correcting errors- so the clients pay twice - once for the bookkeeper to do the work and once for me to do it again properly.

I don't want to be a bookkeeper as a career - but I think it is something I could do well, and earn a few pounds from part time - if I can persuade people to trust me to do a good job. (I guess I might try and see if I can find someone to use my services from asking around people I know)

sparrowsfart

orangeslimes wrote: »

I am thinking of trying to earn a bit of extra money by doing book keeping for people.
I have seen firsthand the work of many bookkeepers employed by small businesses and none have done a decent job. (i.e. haven't checked the bank statements agree, haven't checked things add up)

Is it worth trying to get some sort of bookkeeping qualification to prove I have relevant skills? Or would that be a waste of effort?
I have experience and the ability to do bookkeeping properly (but probably lacking in useful references at the moment)

If you plan to work self-employed, a professional qual is surely a good idea. It will also enable you to gain membership to a professional body, which you might find helpful for support and also your potential clients may feel more comfortable in the knowledge you are supported by a professional body.

theesel1994

Remember that self employed bookkeepers need to be registered for the Money Laundering Regulations either directly with HMRC or via a supervisory body.

http://www.hmrc.gov.uk/mlr

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.

This is completely different to being registered with HMRC as being self employed as someone previously thought I was talking about. There is also some dispute as to whether bookkeepers need to be registered under the Data Protection Act as well.

paulwf

orangeslimes wrote: »

I don't want to be a bookkeeper as a career - but I think it is something I could do well, and earn a few pounds from part time - if I can persuade people to trust me to do a good job. (I guess I might try and see if I can find someone to use my services from asking around people I know)

If you are prepared to do some digging you'll probably uncover half a dozen business networking groups in your area. They could be very useful, face to face introductions will be a good way of gaining business and even if the people at the meeting don't use you they are all in business so may have contacts that do need your services.

With regards to qualifications...do a simple cost/benefit analysis. If it costs £100 go for it and if it costs £2,000 leave it.

orangeslimes

theesel1994 wrote: »

Remember that self employed bookkeepers need to be registered for the Money Laundering Regulations either directly with HMRC or via a supervisory body.

http://www.hmrc.gov.uk/mlr

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.

This is completely different to being registered with HMRC as being self employed as someone previously thought I was talking about. There is also some dispute as to whether bookkeepers need to be registered under the Data Protection Act as well.

That seems a bit over the top for what I would be doing. I thought this might be an easy way to make a little bit of extra cash, but if I have to pay £120 to register before starting (and for every premise I work at) then it makes it a bit extortionate.

Although I have spent some time reading over what it says and not 100% sure it applies to what I am thinking of doing (maybe wishful thinking)

I am not intending to give tax advice, or calculate figures for tax returns or anything like that, just so basic admin for small companies involving organising their expenses and listing their income in a useful way.

I suppose the way round it is to join a professional body- but that will take a while to organise.

Maybe I will just look for a part time job.

gizmo111

I used to do it for several taxi drivers - earnt a nice income from it as well. Basically as you say keeping everything in order, and chasing up accounts as some had account customers, typing up quotes/ estimates etc. Also did VAT returns for a couple. Did it whilst my kids were small and I was studying, they then only had to dump the completed books and organised receipts, bank statements etc with accountant at year end. But beware - have you any idea how many petrol receipts one disorganised taxi driver can throw at you in a month:j

Good Luck, without quals your idea has potential.

want2Bdebtfree

We run a small business and purchased Sage because we thought it was the right thing to do. It was recommended and was readily available at all retail outlets. We made so many mistakes in our 1st year that had we had someone who knew the system and could have helped us we would have paid alot for the service. We still use Sage. My advice would be to get onto a Sage course - some are run by the local Ed dept at a reduced cost to those offered by Sage. Anyone starting a new business wants to concentrate on the business not the paperwork, and anyone who can take that away is a Godsend!

FatAndy

orangeslimes wrote: »

Based on my experience it seems to be the case -every single time I have done work on accounts for clients who have employed bookkeepers I have had to spend ages going over the bookkeepers work and correcting errors- so the clients pay twice - once for the bookkeeper to do the work and once for me to do it again properly.

I had exactly the same experience when I worked in practice, a couple of the book-keepers our clients used were absolutely hopeless but charged good money for what they did. I remember one client were every year the purchase ledger balance list comprised mainly of suppliers with a balance of -1p! It was so bad it wasn't worth correcting the errors, we just binned what the book-keeper had done and prepared the accounts from scratch using the bank statements, cheque books stubs and invoices.