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A really dumb basic question

  • 28 posts
  • # 112785

Hi everyone, I’ve recently qualified and am currently looking for my first client. I’m confused though as to what I need to do about software. The basic problem, and the reason it’s a really dumb question, is that I don’t really understand how this works. Do I decide on and commit to one brand of software before I get going properly? If so, what happens if I take on a client who is already using a different form of software, given that my preference would be to work from home rather than going into clients’ premises (and that I don’t want to have to learn a new kind of software every time I take on a client)? And if I take on a client who’s been doing it with pen and paper, should I expect them to start using software? Basically, is the choice of software dictated by the bookkeeper or the client?

Sorry if this is a bit incoherent, I’m not really sure how to express it properly, but hopefully you see what I’m getting at. Apologies too for the daftness of the question – nothing in my training has ever addressed this, and it seems fairly fundamental to me, so I need people with experience to help me get to grips with it.

  • 28 posts
  • # 112786

Hi Sue,

The answer can be all of the above. You may choose to find one type of software (we all have different opinions as to the ones we like the best) and choose to specialise in just doing that. The advantage of this is you can specialise and attract clients that like that software type. You may also get commission / discounts / free training from the supplier.

On the other hand you may have clients that already work with a particular software type and want you to continue with that. It is up to you to decide whether the fee income you will earn from that client makes it worth you learning multiple systems.

You may also have clients who work with ledgers or excel spreadsheets. Are they doing the bookkeeping and expecting you just to do the financial statements or are you doing all of it? Depending what services they want from you can dictate whether you just accept the status quo or guide them onto software.

If you are new in practice it might be worth trying to be flexible until you have a few clients on board.

Some points you may like to remember in trying to decide:

  • Cloud-based accounting software is usually charged as a subscription and that is paid per client not per bookkeeping practice, although some of the specialist software is the other way round.
  • The move to Digital Tax Accounts (roll-out starting in 2018) will mean that all businesses will be required to keep their accounting records electronically and provide quarterly updates to HMRC. There will be free software available for smaller simpler businesses (no details what yet though). So even if clients are currently keeping paper-based or excel books they are going to have to make the move to some sort of accounting software in the next few years.

If you don't know what accounting software to choose the I would recommend attending the ICB summit. A range of software providers have stands and demonstration screens, so it is a really good way to try before you buy. Also your local branch meeting may have a speakers from the software providers, so it is worth looking out for any local presentations too.

Good luck with the practice,

Kathryn

  • 28 posts
  • # 112810

Thanks Kathryn, this is really helpful. I'm a bit torn between choosing some software now and waiting to see what kind of clients I get - as a total newbie I'm kind of hoping for something small and simple to start with, but I guess I'll have to see what comes along. As you say, I probably need to be as flexible as I can, rather than lose potential clients. I sort of hover between 'right, let's get out there and get some clients' and 'eek, I'm not ready for clients yet!' - but one of these days I'm going to have to get out there and do it!

Thanks again for taking the trouble to help.

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