Can I take over the system transition without professional clearance

Can I take over the system transition without prof

Didn't find your answer?

A potential client wishes to move from their current accountant (a very large accountancy firm) to our practice as they are not gettingt the service and being charged exorbitant rates.

They currently use xero and want to move to quickbooks.  The want me to oversee the transition as well as work on streamling the processes.  However, understandably they want their current accountant to file the end of year accounts/tax return (as they have paid for it)

They will move once the accounts have been filed 

The current accountants manage xero for them.

Without the professional clearance can I still oversee the system transition and also I may need to help with the payroll as well

 

Replies (5)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
26th Jul 2016 14:13

The transfer doesn't have to be all on one date. The client presumably wants you to take over the book-keeping from the day after his year-end and the statutory accounts a year later. So, write to the previous accountant to make a professional enquiry on that basis and at the same time, ask for the trial balance from Xero, along with trade debtor and creditor lists, etc., so that you can set up the book-keeping in Quickbooks. The usual accounts details can follow when the accounts and tax return have been completed, but also ask for the adjustments between the Xero TB and the final accounts.

Thanks (0)
avatar
By JimLittle
26th Jul 2016 16:44

Sorry I should have clarified my potential client's year end is 31st August and we want to set up the book-keeping and payroll from 1st September. It is unlikely the accounts will be ready until a few months after

This client is currently carrying on the book-keeping and has access to xero but not to payroll.

They do not want me to approach their accountant as yet since they hope to get the accounts and tax return filed first and then inform them.

Thanks (0)
Replying to JimLittle:
Euan's picture
By Euan MacLennan
26th Jul 2016 18:28

If the client does not want to inform the previous accountants until the accounts have been completed and the tax return filed, which is likely to be "a few months after" 31st August, how are you going to do book-keeping and payroll from 1st September onwards? The client cannot have it both ways.
I suppose he could just do no book-keeping on Xero and hope that the previous accountants don't notice, but how are you going to pick up the opening balances? I would generally recommend not changing payroll in the middle of a tax year, so leave the payroll until April 2017?

Thanks (0)
Replying to Euan MacLennan:
avatar
By JimLittle
26th Jul 2016 22:08

Euan MacLennan wrote:

If the client does not want to inform the previous accountants until the accounts have been completed and the tax return filed, which is likely to be "a few months after" 31st August, how are you going to do book-keeping and payroll from 1st September onwards? The client cannot have it both ways.
I suppose he could just do no book-keeping on Xero and hope that the previous accountants don't notice, but how are you going to pick up the opening balances? I would generally recommend not changing payroll in the middle of a tax year, so leave the payroll until April 2017?

The client has been doing the book-keeping on Xero so can move this to quickbooks and client can continue then perhaps adjusted the balances later once the accounts have been submitted.

The payroll is more tricky as they would have to inform the accountants. The accountant is using moneysoft and the client wants to run the payroll on quickbooks. I have done it mid-year before and didn't have a problem. Only issue I recall was getting the NI figures.

Thanks (0)
avatar
By JimLittle
26th Jul 2016 22:10

Sorry what are the issues changing to a different payroll software mid -year. Is it from a RTI point of view ?

Thanks (0)