What you need to do to setup your bookkeeping business.

So lately I've been so busy with my day job (management accountant for pharma company ) and at home setting up my home office and refresher courses in Level 3 CPD course in Tax and a Level 3 CPD course in Payroll to write my blog , I do apologise.

Below I'll run through the steps I'm currently taking to set up , this will help you if you decide to set up too !

I've registered with HMRC as an agent , creating a user number for VAT and PAYE. If you are setting up, do this as soon as you decide as this takes a few weeks to come through.

I've set up my home office ready for clients.  There isn't much of a startup cost where capital is concerned. Just a desk, laptop , printer , lots of stationery and printing paper, envelopes and business cards.

I'm currently still waiting on my MAAT and MIP to come through which will cost me £250 or so but I'm expecting it Monday after chasing them up, and included in this is my money laundering supervision.

I then need to register with the ICO £35.00 before i store any of my clients paperwork. As my first client will be starting begining of May I aim to apply for this on 28th April.

I still need a filing cabinet which can be locked with a key , but will get this also this week before I accept the paperwork from client.

I went with AXA for my professional indemnity insurance , £79 per year but I will be paying £8 per month again this is a bargain. 

So in total startup costs will be in the region of £1000 . If you already have a laptop and printer you could startup for around £300! 

I wouldn't advise taking on any sort of work that you aren't qualified to do or sure you can do. 

At first I don't intend on taking on tax returns until I've had plenty of practice doing my own and family's. 

Instead I am going to concentrate on bookkeeping , management accounts , payroll and vat. I do these on a daily basis in my job so am very confident I will not struggle , or make any costly errors.

Download from HMRC website all your deadlines that incur fines , for example VAT , PAYE and CIS taxation.

And once you've advertised you are ready to start looking for clients, they won't just come to you ! 

Up to now the one client I have got I found from his own advertisement so keep and eye on local job boards etc 

I have placed my advert on online business forums and local newspapers as well as Mumsnet etc I also had a magnetic car sign created but up to now none of these have generated clients . 

I also turned down work for tax returns from friend of friends. Looking back I wish I'd of accepted the work , I'm qualified to do it , but as I don't do it in work , I was concerned I wouldn't be giving my client the best service , and that wouldn't be good for him or me.

To combat this concern of mine I have purchased both personal tax and business tax books to retrain my self in current rules and refresh any knowledge gaps , that way next time I'm asked I can say yes.

So if you are starting up like me , get in touch , maybe we can swap stories and worries and help each other .

Goodluck nicola :) 

MEND Accounting

Hey all,

Have not had much time lately to write my blog as I've been very busy both at home and studying for my exams.
I've recently been setting up my new business MEND Accounting.
As you can see from my previous blogs I really love Finance and accountancy so thought I should set myself up in practice, Now or Never.
I'm half way there at the moment, I've set up my business on HMRC. I've applied for my MAAT/MIP status.
I've purchased AXA Professional Indemnity Insurance and today I'm looking for my software and sorting out my home office.
Its going to take a long time building up from scratch but I'm really excited about it, as its mine.
I still work full time for an employer, and will continue to do so but Ill run my business in the evenings and weekends and study around my free time.

I have contacted a few local accountants to gain a continuity of practice arrangement in the event I can not carry out my duties (because of illness etc) and have spoken to a lovely local accountant who has agreed this with me.

All that's left to do now is wait on my licence to come through and advertise.

I have meetings set up for potential clients, its all vey exciting and early days.

Would be very interested in speaking to local networking organisers, or people like myself starting out to discuss ideas and tips.

Also, if any would be accountants/ bookkeepers would like to private message me to ask anything regarding the above don't hesitate.

My new business website is currently under construction but a basic template can be viewed here:

www.mendaccounting.co.uk
email address: nicola.donnelly@mendaccounting.co.uk

Nicola