Book-keeping
Introduction
So you've decided you want to run a book-keeping business. Maybe you've been working for someone else and have decided to go it alone, or perhaps you're looking for a more flexible way of working, possibly from home. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Sector trends
Because businesses are required by law to keep records of their financial transactions there is always a demand for the book-keeper's services. However, during times of recession, businesses cease trading and surviving businesses try to cut costs as far as possible. This might involve taking back in-house various services, such as book-keeping, that had previously been outsourced.
During most of the 2000s the overall number of businesses in the UK grew, increasing the potential customer base for book-keepers. There was also a strong trend towards outsourcing book-keeping work so that hard pressed proprietors could get on with their core activities. Other businesses found that there wasn't enough book-keeping work for a full-time employee so the best solution was to give the work to an efficient and reliable book-keeping firm.
The recent huge growth in Internet retailing also increased demand for book-keeping services - keeping track of online transactions and making sure that these are properly integrated into a business's prime records.
The economic downturn which began in 2008 has seen a fall in the number of businesses, reducing demand for book-keeping services. So it is very important to think carefully about your potential market when you're planning your business venture. On the positive side, it's likely that many small businesses will need help with submitting their accounts and returns to HMRC online, and making payments electronically, after April 2011. HMRC is also going to be checking 50,000 small businesses each year to make sure they're keeping proper records and paying the right amount of tax. Using a qualified bookkeeper reassures businesses that their records will satisfy HMRC.
1.1 Keeping up to date with developments
Joining a professional association is an excellent way of staying up to date with the latest developments. The International Association of Book keepers (IAB) represents book-keepers in the UK and overseas. It offers a range of qualifications and members benefit from services such as a bi-monthly publication, subsidised courses, seminars, continuing professional development and so on. It also produces helpful guidelines for book-keepers on how to comply with the Proceeds of Crime Act and the Money Laundering Regulations. Anyone offering accountancy services must register with Her Majesty's Revenue & Customs (HMRC) if they are not a member of a supervisory body like the IAB.
