Acting as an accountant for relations

Acting as an accountant for relations

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I have been approached by some of my close relations to act as their accountant. I am not too comfortable with this since I keep work and family apart.

Do you work for relations? What has your experience been like?

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By Steve Holloway
27th Jun 2011 08:16

Just goes with the trade I'm afraid!

 As a current headcount I have:

My Wife

My brothers

My neice

My brother's ex-wife

My in-laws

 

Never been a problem. I don't ID any of them though .... !

 

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By Moonbeam
27th Jun 2011 09:51

Relatives and Friends

Although my relatives and I don't get on and we would not want to do business together, I was approached by an acquaintance a few years ago to do his tax return. I forwarded him to another accountant with whom he was very happy. I would do exactly the same if a close neighbour or friend approached me. My feeling is that I do not want to mix up my personal and professional life.

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Me!
By nigelburge
27th Jun 2011 10:10

My experience is.......
..that either you decide to act for them for free OR you charge them the full going rate and treat them as if they were at arms' length. Anything else leads to tears - especially charging discounted rates.

And I don't ID close relatives either!

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By Steve Holloway
27th Jun 2011 10:50

Yep ... all freebies!

 Well .. almost ... mother-in-law pays in cakes!!

I've never really had a problem with the business and private bit ... I find that after a number of years most of my clients become freinds and therefore the consequences of it going wrong are about the same as my family who I see about as often as most clients!

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By User deleted
27th Jun 2011 10:57

My experience

I act for my parents and charge them (it's a business with all the bookkeeping, monthly accounts etc so a fair amount). Having said that I've charged the same fee for 6 years but do more.... I also do accounts for a friend for free (not much to them so only a couple of hours work a year) - he'd be happy to pay but having not charged for the last 4 years I'd feel a bit funny now about saying 'okay it'll cost you £x'. I might charge mates rates next year.. 

I did do the tax return for the relative of a mate once and that was a big mistake. I charged £25 just because they insisted on paying something but for various reasons (their stroppiness etc) refunded it and resigned after doing the first year. Not worth it at all. 

I'd say unless you have the sort of relationship where it will survive anything don't do it (or like the previous answer said, charge full rate and keep it strictly arms length). And if your gut says no then take notice of it, its a far better judge of your life than we can ever be... 

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Teignmouth
By Paul Scholes
27th Jun 2011 13:07

Always potential

Back in the days when the firm I worked for only had one pocket calculator and only the partners were allowed to use it, and we all had to stand up when a partner entered the room, there was never any question of work being undertaken or supervised by a member of the client's family.  So, for example, partner B would handle the affairs of Partner A's brother.  I continued this when I set up and had an arrangement with 2 other accountants whereby we would carry out the work for each others' families.

There was no better example of when my Dad's accounts were done and I got a call from the other accountant to ask about a brass nameplate & mounting for £100 that he'd bought, as there was no receipt.  The date gave it away it was my birthday present that year! 

Today I would still do the same if any of my family were in business but I do now prepare personal tax returns for a couple of relatives & friends, pretty much free of charge.

Whether covered by a regulatory rule book or not I think it is a case of assessing each case to see whether there's potential for threat to objectivity, integrity & independence when dealing with someone close to you.  Your gut though should tell you and your's seems to have done just that.

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By Steve McQueen
27th Jun 2011 16:13

I have acted for relatives...

... and it was the one true attempt to sue me I ever had!

I looked after my brothers business for a number of years and always went above and beyond, then one day without any warning I got a clearance letter from another firm, followed a few weeks later by a letter "questioning the treatment of various items in the accounts of XXX"

This went on for nearly two years - at first amicably and then increasingly tense - before I eventually got a lwyers letter and two more years of crap from my PI insurances´lawyers.

In the ned my brother gave up but we have not spoken since - nearly 10 years ago now.

Steve McQueen

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