That way, it’ll be clear to potential clients what you offer them.īy deciding on the type of clients, their business structure and industry they operate in, you’ll be able to market yourself correctly. Therefore, it is worth deciding which specific services you plan to offer, such as payroll, VAT returns or credit control. What is Needed to Start a Bookkeeping Business?īookkeeping is a broad term. However, there may some additional thing you need to start a bookkeeping business. This contains essential information on registering your business, getting insurance and popular business bank accounts. I’ve written a separate guide to setting up a business which takes you through the basics of going self-employed. How to Start a Bookkeeping Business from Home Will destroy all personal information held on them upon request or in a timely manner if not requiredĥ.Hold all their personal information securely.GDPR Stands for the General Data Protection Regulation, and as a bookkeeper, you need to ensure that you protect data held about your clients, including that you: If you are handling or storing personal information on your clients, then you need to pay a data protection fee of £40 to ICO and ensure you are GDPR compliant. įor any questions about AML or if you need to check whether you need to apply for the licence then email them on 4.2 Data Protection Fee If you have a bookkeeping qualification like AAT or ICB then check with them how you apply. If you are not part of a professional body then you should apply directly with HMRC. 4.1 Money Laundering LicenceĪ Money Laundering Licence is a legal requirement for bookkeepers in the UK. This is known as Anti Money Laundering (AML) Licence. Association of Accounting Technicians (AAT)ĭue to the financial nature of a bookkeeping business, certain licences are required for handling personal information and protection against fraudulent funds.Institute of Certified Bookkeepers (ICB).International Association of Bookkeepers (IAB).There are bookkeeping qualifications available in the UK including: However, if you are planning to start a bookkeeping business, it is essential you have bookkeeping experience. There are no legal requirements for a self-employed bookkeeper to have any formal qualifications. What Qualifications Do You Need to Start a Bookkeeping Business from Home? You’ll need to decide what works best for you, depending on what services you offer and the types of clients you intend to have. Others will choose to charge an hourly rate based on time spent. Many bookkeepers now choose to charge fixed monthly fees which covers a set range of services or transactions. Read my guide to setting your hourly rate to help you set the right wage for you and to download a free calculator to help you work it out. Whatever you choose to charge, you should make sure it covers your expenses, holidays and taxes. But self-employed bookkeepers in the UK are currently typically charging between £15 to £35 per hour. The amount a self-employed bookkeeper working from home can charge per hour varies according to experience and qualifications. Preparing accounting records for the accountants.Ģ.Trade creditor, trade debtor and bank reconciliations.Data entry of source records into an accounting software.On a day-to-day basis, a freelance bookkeeper can expect to do these types of things: Freelance bookkeepers usually use some kind of bookkeeping software such as Xero to process financial information given to them. This involves producing accounts to the trial balance stage, ready for the accountant to generate financial statements and complete tax returns. Generally, they’ll handle the first 4 steps in the accounting process. Bookkeepers are responsible for maintaining the financial records for businesses as well as some business administration. If you’re planning to start a bookkeeping business from home, then it’ll help to understand what services you can offer your clients. What is Needed to Start a Bookkeeping Business?
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