Becoming a bookkeeper

Football Friend wrote: »

Hi,

Does anyone have any advice for someone looking for a self employed career in this. What's the best way to go about it?

I recently qualified ACCA but I never really worked at proper accounting so while in theory I would be able to understand the bookkeeping principles etc right now I don't have the relevant expertise so need to spend the next few years gaining such.

I understand it's pretty saturated industry but I also know that if you're good enough you will get the work. I'm also in a lucky situation as I own my home so ideally in a few years time I want to become self employed and work for myself and earn enough to get by without the corporate red tape.

Should I do a bookkeepers evening course and a sage course? Do accounting practices do bookkeeping or is there anywhere I could seek employment to get relevant experience.

Any help would be greatly appreciated.

Ideally work in the bookkeeping sector of an accountancy practice will bring you up to speed. A lot of the smaller practices do have a bookkeeping department alright and you'll be immersed in bookkeeping if you're chosen to work there. I did a jobbridge placement in a practice where i was eventually kept on and temporarily became head of the bookkeeping department. It was great experience for the basics of accounts, getting to know the VAT rates and what is for resale etc, VAT and PAYE returns and also wage calculations. With 18 months in a practice doing all of the above, you'd be well capable of setting up your own business.

Regarding the setting up of one and the responsibilities you then take on, I don't know anything about that but as you're ACCA qualified, that may actually work against you as you'll be expected to know everything and a lot of trust will be put in you.

Lets just say you're not qualified and are just working as a basic bookkeeper. I imagine when preparing the books and records, they are then submitted to the accountants who check over what you have prepared and go back to you if there's any queries. Providing your work is good enough and you backup the records adequately, questions shouldn't be raised on your work thus enhancing your reputation as a reliable competent bookkeeper.

I hope some, if any, of that helped

PhiliousPhogg wrote: »

I can see where you're coming from, plenty of qualified accountants would struggle with getting bookkeeping done as speedily as a good bookkeeper.

Like the above post says, a practice that has a bookkeeping section would be a good bet. Employers will likely see it as a backward step if you're smart enough to be qualified but I'd say you'll find a position all right and they might make you a team lead or something once you pick it up. I don't think small accounting packages are hard to figure out but maybe a course would be of benefit if you have some time and it's not costly.

Be aware the amount of work for bookkeepers will reduce as online accounting software becomes more and more common with SMEs, ie. when accounting software is linked to online banking and with utility providers etc, there is no need for bank reconciliations, AR and AP recs, and VAT, and these software packages, (Xero, Sage online, MYOB) will just get better and smarter over time. They will save small businesses on accounts/bookkeeping costs and provide useful realtime information. You can't limit yourself to bookkeeping the way things are going. If you can become an expert you could be of valuable service to small businesses setting them up to be self sufficient and provide ongoing help on more difficult matters when they need it.

I agree with the broader point being made here although not some of the specifics.

I don't believe there will ever be a time when bank, creditor & debtor reconciliations will be unnecessary. These will always be important as they are the bedrock upon which everything is built. Of course things are changing, processes are being speeded up, etc. But this is all the more reason why somebody who is up to date with all the changes & developments will have a good opportunity to make the most of these skills.

Some people seem to believe that it will be possible to scan/upload source documents into accounts software and then just print off perfect financial information without any need to understand debits/credits or how anything actually works. This would just lead to accountants with no understanding of how accounts are prepared. Would anyone really want an accountant like that advising them on anything?

Although systems are changing and inputting of transactions will be less cumbersome, there will always be a need for qualified people who can ensure that the initial setup is correct and who can understand & fix problems as they arise.