Starting Accounting Business

Saint Sonner

I am considering starting up a part-time business as I have a few people I do some work for and others appear to be interested. I was thinking of trying to expand by having a more professional approach to it. I am not yet fully qualified but hopefully will be within a year hence the work will be small in nature eg. VAT, PAYE, Sole Trade & Partnership accounts, self assessment tax returns.
I was wondering does anyone have an insight into the costs and/or advice about starting up and going forward. Eg would you need indemnity insurance etc?

backtothebooks

Hi Saint Sooner, the only thing that I'd recommend is that you contact the Institute that you're a student member of as there are restrictions on providing a service that is deemed 'public practice'. I know for example that the provision of book-keeping and accounting services is deemed public practice by the ACCA and in order to provide such services one needs to have a practicing certificate (this is different to an auditing certificate). In any event and assuming that there is no restriction on you proceeding, the very best of luck with it.

Spidermany

Bookkeeping Services are NOT considered public practice by the ACCA. This includes VAT returns, payroll services etc. You can prepare accounts up to Trial Balance and pass them on to an accountant for completion, but you cannot prepare accounts or Income and Expenditure Statements as these are relied upon by third parties. The thinking seems to be that VAT and payroll are checked by accountants on completion of the accounts.

You would not need a practicing certificate from the ACCA for bookkeeping services. I'm totally sure about this as I recently completed a one day course by the ACCA on the requirements for practicing certificates

Saint Sonner

Thanks for the advice.

Just wondering when your dealing with small self assessment tax returns in UK you can prepare simple P&L Accounts that a client can sign off themselves. (i.e. as if they just did them themselves)???

Spidermany

I'm not sure if the rules are the same for students but I presume they are.

You are not allowed to do this with ACCA as a qualified member as they argue that your client is relying on your expertise, and by signing it themselves, your client doesn't circumvent the rules. This applies to Income and Expenditure Statements as well as accounts. They told us that we cannot even prepare tax returns for family members for the same reason.

I presumed that the rules in Ireland were the same all over the world with ACCA.