The big question that has been asked of ICB for its entire twenty-four years, and ironically the one that it has struggled most to answer, is “how much should I charge?” Our answers have varied but have always been based on feedback from members balanced with a modicum of enthusiasm and peppered with encouragement. We have variously suggested “whatever you feel comfortable with”, “find out what others in your area are charging” or “we understand others in your area are charging £X”. It has always been difficult for ICB to answer. It is strange to note that when asked by ICB to do something under contract, people who claim to be struggling to charge clients £25 per hour suddenly claim that their hourly rate is £40 plus.
I have had conversations recently with members who have wanted to advertise vacancies on the ICB Job Vacancies platform, for which they are offering very low rates but hoping to attract qualified ICB members.
I have argued the point that if we as ICB Bookkeepers only value an ICB Bookkeeper as worth so little, why would anybody else value members as worth any more.
I appreciate there is a fine dividing line, and I also fully appreciate that for a newly qualified member who would love to get some experience under their belt, this might be acceptable. But what does it say to those other companies that choose to use ICB Job Vacancies to attract their next bookkeeper, if they see that some are offering £10 per hour? Do they see this as the norm and therefore question why they should offer more? I have listened to the arguments on both sides and it is very difficult to make a firm decision on this. Is £18,000 per annum a good wage for a newly qualified bookkeeper? Here in London, a basic administrator would not get out of bed for less than £20,000 and most will expect circa £25-£30,000.
I would value your responses to my question. What is a reasonable rate for a qualified bookkeeper?
How much do you charge? It would be a great help if you could take part in our benchmarking survey coming out in the next few months...
Do as you are told…or don’t
Thank you so much to all of you who responded to my column in last month’s newsletter. Many of you took the time to pen your thoughts and to provide quite long letters of support. I have responded to almost all of them but have a couple that I shall get around to later this week. The responses show the breadth of service that you provide and proved beyond doubt that in being extremely successful and professional, ICB members are using many of the tools at their disposal; but it is your decision. You are making real-time judgements about what will help you and help your clients, but you won’t be pushed into anything by slick sales patter or promises of a better badge for your website. Mess with an ICB Bookkeeper at your peril!
We’re doing fine
ICB is this month introducing a new fine structure for those members who stray beyond the bounds of what is correct and who, as a consequence, breach either the Professional Conduct Regulations (PCR), Anti-Money Laundering Regulations (AML), or both.
It is a difficult balancing act for ICB to be both your main source of support and encouragement, whilst at the same time being the enforcer of your standards and governance. Both define ICB and you the members in the broader profession and contribute to our mutual reputation, standing, and influence. It is never a nice thing to have to discipline someone for having failed to achieve the very high standards that ICB expects of its members, but it is sometimes necessary. Rules and regulations exist as a model of best practice, to give ethical guidelines, and to keep members within the bounds of the professional standing that first drew them to ICB. The need for strong principles is highlighted in the foreword to the PRC, which was written by Professor Mark-Watson-Gandy, the barrister who set out the original regulations that have guided us since 1996, and which state:
"Professionals are expected by employers, clients, and by the public to adopt a higher standard of conduct and behaviour in their professional life. It is that which underpins our value and the confidence the public has in us as professionals. These rules set out those basic principles of minimum conduct. However, ethics and professional conduct rules do more than that. The choices faced by a professional on a day to day basis are rarely black or white. Those choices are often made at a time when one is under pressure from a client or the clock. The professional rules help us judge our conduct by an objective benchmark at those difficult times. They provide us with a ready and polite reason for saying 'Sorry, I can't do that' when faced with pressure to stray across the line."
Today, as ever, you and all bookkeepers should be guided by the five fundamental principles of professional conduct:
- Integrity
- Objectivity
- Professional Competence and Due Care
- Confidentiality
- Professional Behaviour
Integrity
To be straightforward and honest in all professional and business relationships
Objectivity
Not to compromise professional or business judgements because of bias, conflict of interest or undue influence of others
Professional Competence and Due Care
- Attain and maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service, based on current technical and professional standards and relevant legislation; and
- Act diligently and in accordance with applicable technical and professional standards
Confidentiality
To respect the confidentiality of information required as a result of professional and business relationships. Confidential information must not be disclosed outside the organisation without authority unless there is a duty or right to disclose, or disclosure is in the public interest and permitted by law.
Professional Behaviour
To comply with government laws and regulations and avoid any conduct that the professional bookkeeper knows or should know might discredit the profession
Over the past twelve months, twenty-nine ICB practices were found not to be compliant and seven were found to have been practising without a licence. The practices were fined an average of £435.00. In January one practice was found to be seriously non-compliant and was expelled from membership.
ICB’s new fine structure will mean that in the future, to ensure that ICB members recognise the importance of compliance and remove the benefits of non-compliance, higher fines can be levied, which will bring ICB in line with other professional bodies and HMRC. This will include a range of financial sanctions, including mandatory fines, penalties, and costs. Where a practice fails to carry out an agreed action plan and take remedial action to achieve compliance, they will face further sanctions or face suspension or possibly expulsion.