accounts preparation business

JamesN

Hi all,

Just looking for some advice or a point in the right direction. I'm just about to qualify as a chartered accountant having worked as an auditor for 3 years.

I have a new job but was hoping to do some accounts preparation for very small companies. Essentially one man bands that just pay themselves through a dividend.

My question is, how would I go about setting this up. I'm happy with the admin of setting up a limited company and happy to get pii. My main query is the signing of accounts etc. Do I need special authorisation or something? I assume I'll have to pay subscriptions.

Many thanks

Pennywise

You really need to research the practising regulations of your chartered regulatory body, presumably the ICAEW.

You will almost certainly be in breach of the ICAEW rules if you "practice" without their practising certificate, which means you need the requisite experience pre and post qualification signed off by your employers, professional indemnity insurance, and once ICAEW are satisfied, they'll issue you with a practising certificate. Until then, you are probably limited to book-keeping up to trial balance and won't be allowed to prepare and sign off accounts and tax returns.

Note it's the ICAEW rules, so as long as you want to remain a member you have to abide by them. If you weren't an ICAEW member (or student), you'd be free to prepare accounts and tax returns as anyone can do that without qualifications, certificates etc - the bare minimum is getting HMRC money laundering regulations registered and then it's open season for any man and their dog!

JamesN

Thanks Pennywise. It will be the ICAEW. I assumed there would be some sort of practising certificate so thanks for clarifying. Are you aware of how much post qualification experience you need and whether this needs to be earned in practice or outside of it? Or is it just a case of being a member for 2 years?

antrobus

JamesN wrote: »

Thanks Pennywise. It will be the ICAEW. I assumed there would be some sort of practising certificate so thanks for clarifying. Are you aware of how much post qualification experience you need and whether this needs to be earned in practice or outside of it? Or is it just a case of being a member for 2 years?

See;
http://www.icaew.com/en/members/practice-resources/practice-regulation/practising-certificate

It costs you £304 per year. Plus you need to buy PII.

JamesN wrote: »

....Just looking for some advice or a point in the right direction. I'm just about to qualify as a chartered accountant having worked as an auditor for 3 years.

I have a new job but was hoping to do some accounts preparation for very small companies.....

With these deepest respect, someone who has "worked as an auditor for 3 years" would not necessarily have a frackin clue how to do accounts prep.

Or as one ex-PWC auditor once said to me; "What's a journal?":)

Edit: Plus you need to buy some software that handles CH and HMRC submissions.

JamesN

antrobus wrote: »

See;
http://www.icaew.com/en/members/practice-resources/practice-regulation/practising-certificate

It costs you £304 per year. Plus you need to buy PII.



With these deepest respect, someone who has "worked as an auditor for 3 years" would not necessarily have a frackin clue how to do accounts prep.

Or as one ex-PWC auditor once said to me; "What's a journal?":)

Edit: Plus you need to buy some software that handles CH and HMRC submissions.

Haha, don't worry I know where you are coming from. Fortunately, when I say auditor, that was my main role. I have done plenty of accounts prep during that time as well.

Any recommendations on the software?

Thanks for the info.

Pennywise

JamesN wrote: »

Any recommendations on the software?

Book-keeping and accounts prep: https://www.vtsoftware.co.uk

Tax returns: https://www.taxfiler.co.uk

Payroll: https://www.moneysoft.co.uk

Is the combo usually suggested for smaller book-keeping and accounting practices.

I don't think you'll get away with just accounts prep. Smaller clients want a full service which will include tax returns as a minimum, which means you need to know enough about tax to get the tax computations and tax returns right and submit them for the clients. Small companies don't just pay dividends, the optimum is a low director's payroll too, so you'll need quick and easy software to run their payrolls for their monthly RTI submissions.

I really can't see many clients wanting you just to prepare the accounts leaving them to do their own payroll, book-keeping and tax returns (or getting someone else to do them). Small practice just doesn't work that way. Clients want a "one stop shop" for everything. You'll also find they expect advice when asked on VAT matters, etc., so it's a fairly comprehensive service most will want.

Mistral001

Have you told your employer about your plan? I am in a chartered profession and telling your employer about any outside work that you are doing is certainly an unwritten rule, if it is not a contractual condition.




Remember, if you decide to stop doing outside work say after a couple of years, your PII needs to be continued for at least six years after you stop.

JamesN

Pennywise wrote: »

Book-keeping and accounts prep: https://www.vtsoftware.co.uk

Tax returns: https://www.taxfiler.co.uk

Payroll: https://www.moneysoft.co.uk

Is the combo usually suggested for smaller book-keeping and accounting practices.

I don't think you'll get away with just accounts prep. Smaller clients want a full service which will include tax returns as a minimum, which means you need to know enough about tax to get the tax computations and tax returns right and submit them for the clients. Small companies don't just pay dividends, the optimum is a low director's payroll too, so you'll need quick and easy software to run their payrolls for their monthly RTI submissions.

I really can't see many clients wanting you just to prepare the accounts leaving them to do their own payroll, book-keeping and tax returns (or getting someone else to do them). Small practice just doesn't work that way. Clients want a "one stop shop" for everything. You'll also find they expect advice when asked on VAT matters, etc., so it's a fairly comprehensive service most will want.

I get what you are saying. I've got a specific set of clients in mind that would all need exactly the same thing. The tax returns will all be simple so i'm not worried about that.

Mistral001 wrote: »

Have you told your employer about your plan? I am in a chartered profession and telling your employer about any outside work that you are doing is certainly an unwritten rule, if it is not a contractual condition.

Remember, if you decide to stop doing outside work say after a couple of years, your PII needs to be continued for at least six years after you stop.

Thanks, I didn't know about the PII requirement for 6 years.

My new job isn't in practice, it is industry based but i'm going to having a chat with HR to make sure they are happy with it. Just want to make sure it is a viable option first