I am currently studying the aat course at my local college. I have just passed the first year and i am seriously looking into setting up my own business. However, it's all a bit new to me so i would really appreciate any help or advice that anyone has to offer.
The type of questions i am asking myself are:
What services to offer
How much to charge
I am only to aware that only having 1 year behind me isn't the best and i know that i can't do tax returns or anything like that YET, but the general maintenace of business accounts shouldn' be too much of a problem.
Based on your current course studies you should be able to offer a basic record keeping service, maybe cherry picking clients at first. Non VAT registered sole traders may be your best bet who require nothing more than their receipts and invoices summarised into a cash book. As you build up your knowledge and experience look to take on more complex businesses.
Obviously you have to be realistic regarding fees. You may even want to offer your services for free to local charities to gain some experience. Your close network of friends and family may prove to be a valuable source of work. Try discreetly contacting other local book-keepers or searching the web to gauge current rates in your area.
It's all a bit scary at the moment soi really appreciate the advice. I'm looking at doing the icb course as i want to be seen as professional. Start from the bottom and work my way up.
I'm starting up a new business beginning in January when I leave my current job in December. I've been meaning to do it for ages, but have finally taken the plunge. I agree it is a bit scary and I'm looking at ways to market myself over the next couple of months. I've been advised to look for small local businesses and advertise in post-offices etc. Maybe also leaflets and flyers posted into small businesses would be a good idea. I'm also planning on posting my CV to local accountants who might be able to offer small book keepign jobs. I used to work for an accountants and we used to sub contract work occassionaly so this method may well work for you.
In terms of charges, I'm based in the south east near London and am anticipating charging between £15-£20 per hour depending on the nature of the work. I'm not sure where you're based but it may give you an indication.
Anyway hope this helps. I'm new to this too, so perhaps it would be good to keep in touch and see how each other gets on!
I'm going into college today to enrol on my second year, so gonna ask my tutor for some advice. Would like to keep in touch as two heads are better than one. My e-mail address is debsmcgarr@btinternet.com. I'm looking at possibley doing some volunteer work as its a good way to get my name about but i'll let you know how i get on. Looking forward to speaking with you in the future Debs x
Just to hopefully add some useful stuff to what the others have already said...
If you're starting out as a business, as opposed to a contractor, part-time employee etc... you may need to consider providing a more complete service than data-entry or basic bookkeeping - although that might be all you're completely comfortable with providing yourself.
Businesses are possibly more likely to seek someone that would look after their full bookkeeping needs, and some also full accounting needs. It is simply a convenience for them.
This isn't to say you couldn't do it. Using outsourced services, support networks (incl forums), or even the services of a local accountant you could probably include a broader range of services.
It can be difficult to get work handed to you from accounting practices just from writing to them. Often a relationship built up, and proven capability is what 'seals the deal'... though if you are able to use their services (eg. year end tax) and tell them you also need to work alongside a practice it may help you with a foot in the door.
Certainly agree with Guy's suggestion of providing services to a local charity, something a few of us here have done in the past as it's not only experience but but builds contacts, relationships plus that 'feel good' factor.
As Jenny mentions - £15-20 per hour is probably fairly standard... though if you are competing with others to start building your client base you may have to be just a little more price-competitive... at least until you build up (can always offer discounted rates for a short period of time to prove yourself as well as help them).
It can be a big thing... but don't be too scared of it! When you are ever asked anything you are unsure of, simply say you're not certain and will double-check and get back to them a little later - always better than possibly being wrong, and you can say that with confidence. Then get onto these forums, a tutor, your local accountant contact,your books and find out!
