I have been reading quite a bit on the forum as I am considering a new career as a pt self employed bookkeeper.
I am mid 40s and have been unable to work for past few years due to disabling chronic illness. I am not well enough to go back to the kind of management job I used to do but as my disability benefits will soon stop I need to start thinking about preparing myself for some kind of work I can do in a year or so to bring in a small income (5-8 k net). Having given it many hours of thought the only thing I can think of that may work for me, given my experience is bookkeeping. Due to my illness I have very restricted mobility which makes going out to work almost impossible and the illness would limit my hours to about 10-15 hours a week.
I have a few initial questions I wonder if someone could help answer for me
Is self employed bookkeeping likely to be pressurised and stressful? I know there are month end and year end deadlines to consider but I assume as self employed you are a bit more in control than if working for an employer and can say no to anything which seems too much.
Would it be unreasonable to expect clients to drop off and collect paperwork to me so that I can work from home and don't have to go out?
Is it feasible to build up a small business limiting your hours so much? There seem to be quite a few pt bookkeepers here.
Is it going to be totally impossible to get clients because I can't get out and network?
Finally are there any other bookkeepers here who are disabled or are restricted because of health, if so do you have any advice.
Its the end of January and everyone's running around like headless chickens trying to file everything before the deadline.
You will get responses but best you bounce your question after Friday.
welcome to the forum though and we will chat soon,
kindest regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Right, I'm back. Nothing more that I can do now before the clients turn up to sign their accounts and tax returns.
I have been reading quite a bit on the forum as I am considering a new career as a pt self employed bookkeeper.
I am mid 40s and have been unable to work for past few years due to disabling chronic illness. I am not well enough to go back to the kind of management job I used to do but as my disability benefits will soon stop I need to start thinking about preparing myself for some kind of work I can do in a year or so to bring in a small income (5-8 k net).
Annual overheads will be Software, professional body membership (advisable), MLR (legal requirement), PII insurance (advisable plus a requirement of your practicing certificate), stationary. All told somewhere between £800 and £2000 per year depending on the software that you choose so to get 8k income (10k turnover) you really need to be thinking of around 800 to 850 paying hours per year assuming around £12 per hour. Or, at the lower end 450 to 500 hours to get £5k (5.8k turnover) at £12 per hour.
There are higher rates available but its a very cometitive market so I imagine that you will be competing based on price.
Having given it many hours of thought the only thing I can think of that may work for me, given my experience is bookkeeping.
If you come to the table with a lot of experience you may be able to push the price up and the hours down.
Due to my illness I have very restricted mobility which makes going out to work almost impossible and the illness would limit my hours to about 10-15 hours a week.
I have a few initial questions I wonder if someone could help answer for me
Is self employed bookkeeping likely to be pressurised and stressful?
Yes. Not all of the time but it has its moments... Oh, and clients always seem to want everything before they've asked for it but won't give up the documents that you need until your holding their first born off the edge of a cliff by their ankles.
I know there are month end and year end deadlines to consider but I assume as self employed you are a bit more in control than if working for an employer and can say no to anything which seems too much.
Not once you take a client on. You can advise clients to use another practice but you cannot tell a client that you cannot help them once you have taken them on.
Clients tend to expect you to be there when needed. January may be something of an exceptional case but during this month talking to clients after 10 at night and still finding yourself working at 2 in the morning is not unusual.
Would it be unreasonable to expect clients to drop off and collect paperwork to me so that I can work from home and don't have to go out?
I think that would restrict your client base and you're putting emphasis on the client to get their finger out where if they are not "looking forward" to a visit from one of us sorting out their paperwork for us is often the last thing on their minds.
Is it feasible to build up a small business limiting your hours so much? There seem to be quite a few pt bookkeepers here.
Personally I find that clients need us to work around their businesses so often out of hours. That generally fits nicely around peoples need to work PT on their bookkeeping businesses whilst also maintaining day jobs... Ask yourself. If there is money in bookkeeping why do so many only do it part time?
That said, there are many on here make a living from Accountancy (including bookkeeping) as their main work.
Is it going to be totally impossible to get clients because I can't get out and network?
You are competing for work against those who can so I think that you are onto a loser.
Finally are there any other bookkeepers here who are disabled or are restricted because of health, if so do you have any advice.
I am very close freinds with disabled accountants and they over compensate the other way to prove that they are not just as good as, but better than anyone else. One in particular I know that I'm not even in the same ball park as her for the work she does and hours that she puts in.
Thank you
Phuket
Like the name. I lived in Thailand for a while... Actually around 99. I was in a village about 30 km North of KhonKaen up in the North East (Isaan Region).
Right, now that the above has probably depressed you time to look at the same scenario but in a different way.
You say that you have experience in bookkeeping, thats a strong selling point.
Do you have any qualifications?
How far does your knowledge base strecth (pure bookkeeping or into accountancy?).
Your past experience could score you some brownie points with local practices who may be willing to take you on on a temp / PT basis sub contracting work to you which means that you wouldn't have to network which seems to be the real failing in your existing plan.
Something like ICB might be a perfect qualification for you (James, Brian, Dave, Peasie now wipe that coffee splatter off your screens!) as it provides networking opportunities, a community and support without the normal hassel of things like BNI.
Personally I think that sub contracting on a self employed basis would be the best option for your circumstances... But, as mentioned before, there's quite a bit of competition out there so it may take a while to land something suitable.
Sorry that there are so many negative points to the response.
Hope that some of the above gives you hope that this is viable if perhaps not in the way that you initially envisaged it.
kind regards,
Shaun.
p.s. accountants will want fast turn around as well so there will still be pressure but at least not the selling side of things.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
"Something like ICB might be a perfect qualification for you (James, Brian, Dave, Peasie now wipe that coffee splatter off your screens!) as it provides networking opportunities, a community and support without the normal hassel of things like BNI."
Hi Phuket,
Welcome to the forum. Home study certainly fits in with people in your circumstances as there is complete flexibility with study times, etc. I know we've had many students with varied levels of disability been successful in gaining their qualifications and have gone onto be successful in their new career. I'll see if I can persuade someone to come in and share their experiences.
I suffer from a chronic illness too and a couple of years ago I had to leave my technical role in the food industry, as it was too stressful and I kept getting ill. Just over a year ago I made the difficult decision for a career change. I started bookkeeping courses with home learning college. These home study courses are great as you can study at your own pace and of course when you are feeling up to it. This may mean it takes longer than others, but you will still get there. I qualified with my level 2 ICB qualifications in August and became an Associate member of ICB. I have a practice licence now and I am currently looking for clients. The ICB have great help tips for setting up business and there are other forms of advertising you can use. I struggle with networking meetings as they are often early in the morning which because of my health I struggle with. So maybe it will hinder a bit not being able to get out but there are networking sites on facebook, which you can post on from home. I have now decided to do the ICB Diplomas in Self assessment and then payroll with Ideal Schools to further what I can offer potential clients.
I know this is not a complete success story for you but I know how much of a difference it has made being able to study from home and then to work from home too. I see the benefits as having as many and as few clients as you can deal with and be able to work the hours that suit you best. It may be a challenge as I certainly have found it so but thought it would be good to share my experience with you.
Thank you for your helpful input. It's nice to know there are other people in a similar situation.
Shamus
Thank your very helpful reply. Sorry I should have realised everyone would still be working to end of Jan deadlines.
You have helped to answer most of my questions. I realised that it was going to be very tough starting out and trying to make a business but I have such few options that trying to work at bookkeeping seems better than trying to sell knitted scarves on ebay and if I fail at making it work at least I will know how to keep my own books if the knitting turns out an unexpected success.
I may have worded my previous post rather ambiguously but I don't have any real bookkeeping experience to speak of. I did help keep the books for a few years at a previous company but my knowledge is rather rusty now so I'd need to start again from scratch now and get a new IAB/ICB qualification.
In terms of managing workload and stress etc I was wondering whether trying to start a small business just offering payroll would be a viable option. I did payroll (not UK) previously and enjoyed doing it. I know that it also involves monthly deadlines but as it's a regular thing it should be possible to work out suitable times and cut offs and at least you know what the deadlines are. Anyone any thoughts on that?
Shamus wrote:
Phuket99 wrote:
Right, I'm back. Nothing more that I can do now before the clients turn up to sign their accounts and tax returns.
I have been reading quite a bit on the forum as I am considering a new career as a pt self employed bookkeeper.
I am mid 40s and have been unable to work for past few years due to disabling chronic illness. I am not well enough to go back to the kind of management job I used to do but as my disability benefits will soon stop I need to start thinking about preparing myself for some kind of work I can do in a year or so to bring in a small income (5-8 k net).
Annual overheads will be Software, professional body membership (advisable), MLR (legal requirement), PII insurance (advisable plus a requirement of your practicing certificate), stationary. All told somewhere between £800 and £2000 per year depending on the software that you choose so to get 8k income (10k turnover) you really need to be thinking of around 800 to 850 paying hours per year assuming around £12 per hour. Or, at the lower end 450 to 500 hours to get £5k (5.8k turnover) at £12 per hour.
There are higher rates available but its a very cometitive market so I imagine that you will be competing based on price.
Having given it many hours of thought the only thing I can think of that may work for me, given my experience is bookkeeping.
If you come to the table with a lot of experience you may be able to push the price up and the hours down.
Due to my illness I have very restricted mobility which makes going out to work almost impossible and the illness would limit my hours to about 10-15 hours a week.
I have a few initial questions I wonder if someone could help answer for me
Is self employed bookkeeping likely to be pressurised and stressful?
Yes. Not all of the time but it has its moments... Oh, and clients always seem to want everything before they've asked for it but won't give up the documents that you need until your holding their first born off the edge of a cliff by their ankles.
I know there are month end and year end deadlines to consider but I assume as self employed you are a bit more in control than if working for an employer and can say no to anything which seems too much.
Not once you take a client on. You can advise clients to use another practice but you cannot tell a client that you cannot help them once you have taken them on.
Clients tend to expect you to be there when needed. January may be something of an exceptional case but during this month talking to clients after 10 at night and still finding yourself working at 2 in the morning is not unusual.
Would it be unreasonable to expect clients to drop off and collect paperwork to me so that I can work from home and don't have to go out?
I think that would restrict your client base and you're putting emphasis on the client to get their finger out where if they are not "looking forward" to a visit from one of us sorting out their paperwork for us is often the last thing on their minds.
Is it feasible to build up a small business limiting your hours so much? There seem to be quite a few pt bookkeepers here.
Personally I find that clients need us to work around their businesses so often out of hours. That generally fits nicely around peoples need to work PT on their bookkeeping businesses whilst also maintaining day jobs... Ask yourself. If there is money in bookkeeping why do so many only do it part time?
That said, there are many on here make a living from Accountancy (including bookkeeping) as their main work.
Is it going to be totally impossible to get clients because I can't get out and network?
You are competing for work against those who can so I think that you are onto a loser.
Finally are there any other bookkeepers here who are disabled or are restricted because of health, if so do you have any advice.
I am very close freinds with disabled accountants and they over compensate the other way to prove that they are not just as good as, but better than anyone else. One in particular I know that I'm not even in the same ball park as her for the work she does and hours that she puts in.
Thank you
Phuket
Like the name. I lived in Thailand for a while... Actually around 99. I was in a village about 30 km North of KhonKaen up in the North East (Isaan Region).
Right, now that the above has probably depressed you time to look at the same scenario but in a different way.
You say that you have experience in bookkeeping, thats a strong selling point.
Do you have any qualifications?
How far does your knowledge base strecth (pure bookkeeping or into accountancy?).
Your past experience could score you some brownie points with local practices who may be willing to take you on on a temp / PT basis sub contracting work to you which means that you wouldn't have to network which seems to be the real failing in your existing plan.
Something like ICB might be a perfect qualification for you (James, Brian, Dave, Peasie now wipe that coffee splatter off your screens!) as it provides networking opportunities, a community and support without the normal hassel of things like BNI.
Personally I think that sub contracting on a self employed basis would be the best option for your circumstances... But, as mentioned before, there's quite a bit of competition out there so it may take a while to land something suitable.
Sorry that there are so many negative points to the response.
Hope that some of the above gives you hope that this is viable if perhaps not in the way that you initially envisaged it.
kind regards,
Shaun.
p.s. accountants will want fast turn around as well so there will still be pressure but at least not the selling side of things.
Like you, I had to leave my full-time management job due to health issues - I have ME/Chronic Fatigue - and went into bookkeeping as I am good with/love numbers and I wanted a job which I could work around my health. I studied with Ideal Schools in January to April and then set up my own practice in May. I was a bit worried about home study and finding the motivation but Ideal Schools were absolutely brilliant and you can study at your own pace which is great, and this meant I could study around how I was feeling. I would really recommend speaking to Brian about ICB courses....
I work 3 days a week and spread my hours out across Monday, Wednesday and Friday so I have rest days in-between and have found all my clients really accommodating. I never go into a client before 10am, and only usually work about 6 hours a day. I certainly don't have any issues with people calling me at 2am and to be honest, if anyone did, I wouldn't take them on as a client or I would drop them if I had taken them on. Besides, I put my phone on silent when I am asleep so no-one can contact me (I only give my mobile number out to clients which gives me total control on taking their calls). Furthermore, one of the great things about bookkeeping is that there aren't really any dramas on a day to day basis so there isn't really any reason why you can't work hours to suit you; I certainly do. I also do not take on self assessment (even though I have the qualification) as this leads to peaks and troughs. It is also useful if your clients have different year ends. This way, you don't have any overly manic months.
One of the best things about working for yourself is that ultimately you choose your clients and it is important to set realistic expectations on both sides. It is true that if you are only able to work from home that your client base will be more limited but there is a guy in ICB Hampshire who manages all his clients online and has them throughout the country. I don't know if he has ever actually met any of them. Admittedly he is an expert with IT which helps. But with QuickBooks Online, Xero, etc, these things are becoming much more the norm. I have a client which is about 8 hours a week work who I have never met and they send me work by special delivery. I am sure a local person would be happy to drop off paperwork or perhaps a friend could pick it up for you? There are lots of options and yes, it will limit the number of potential clients, but will not make working impossible.
I guess your hardest challenge will be networking. However, with LinkedIn and the like I am sure you could network successfully. I also just picked up a client from the ICB website. Also, as you are only wanting 15 hours a week work you will not need many clients anyway. Another option is to make friends with other bookkeepers locally who may be able to pass work onto you (I have turned down 2 possible jobs this week as I do not have time to do them at the moment....)
As for overheads, I don't really have that many. I spent about £1,600 on study (although obviously this is a one-off cost), and then professional fees are about £200 a year and insurance about £70 a year (although this will be less with a smaller client base). You obviously then need a laptop, phone, internet, etc, but most people have those at home anyway. My clients all pay for their own software. In fact, there is an option to make some money on selling them software but I am really kind and sell it to them at cost price!
With regards to stress, I have some lovely chilled jobs and also a couple of jobs which are a nightmare as I am sorting out the previous bookkeepers messes. These latter 2 do cause some sleepless nights but again, it is up to you which type of work you choose. I figure if I can sort out these 2 companies then I will have gained some brilliant experience for the future and, moving forwards they should be fairly routine. All my clients are lovely though and I would only work for someone where there was mutual like and respect (one of the advantages of being self employed!!!)
If you worked 15 hours a week you will easily earn £5-8k a year. I would say nearer £15k+ gross. I charge between £20 and £25 an hour, with a view to charging £30 in the future when I have more experience. I do live in the South in a very wealthy area though and I guess these rates vary nationally. I do not compete on price and charge what seems to be the going rate for a qualified bookkeeper locally.
Personally, part time bookkeeping has been a brilliant choice for me and I think you could make it work. I guess your biggest challenges will be finding enough clients who are happy for your to work at home and send you paperwork (this is now easier with online software) and networking (but there are lots of online options).
Good luck. I have no doubt you are used to challenges and will overcome any that get in your way!
Practices may find RTI something of a drain on resources and if you're competitive this could be a way 'in' for when you're ready to offer bookkeeping.
Thank you for your reply. It seems you have a similar condition to me so it has been very useful to hear about your experience and especially to hear a positive story. It sounds as though you are doing well and have managed to build up your business quite quickly if you only started in May.
You also seem to have qualified quickly so did you have any previous bookkeeping or finance experience? I see you studied ICB which I am considering as the best option for me as it requires less external exams to be taken.
