Getting involved with previous accountants

Getting involved with previous accountants

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I have taken on a new client who is still in dispute with their old accountant regarding the level of service provided and they have refused to pay the full amount of an invoice outstanding for their last set of Statutory Accounts. The accountant in question is refusing to answer phone calls or respond to letters from the client, requesting a credit note for part of the fees invoiced. I believe that their issues were with a number of errors included in the last set of accounts, the timeframe taken for the accountant to complete the work (in excess of 6 months for a small limited company) and their inability to contact the previous accountant (phone calls not returned etc).

I have contacted the previous accountant to request any information to be sent to me, but as I suspected they are unwilling to provide any information until the final bill is settled. As they are also unwilling to have any form of dialogue with the client this means we have reached a stalemate.

Is there any way that I can get involved to move the situation along or would this be bad form on my part?
Sarah

Replies (7)

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By User deleted
23rd Jul 2008 20:52

Use Your Elbows!
Option 1
Go to ICPA's website at http://www.icpa.org.uk/icpa-026800500C0D000011112222.html and you will see their gateway to their Code of Practice and Ethics - accessible to members only, but you could email and ask for a copy (or enquire whether ICPA's are bound by their code to hand over documents regardless of outstanding fees).

Option 2
Ask the client to dig out a copy of the last accounts, and write to HMRC asking for copies of recent tax returns

Option 3
Exercise the wondrous beast that is a Subject Access Request (SAR) under the Data Protection Act - the client will need to make a request for all data held by the previous accountant, pay £10, and wait some weeks. Worth checking first whether the previous accountant is actually registered with the Information Commissioner as a data controller (you can check the register free online) as it would give a sharper edge to your sword if the old accountant has forgotten to register.

Caveat: IMHO many clients who get bad service do so because they are either (i) a pain in the elbow; (ii) bad payers; or (iii) both of these.

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By Jason Dormer
23rd Jul 2008 19:51

Do the mediation
Whilst I agree with comments that a large pinch of salt should be taken in these circumstances, it does appear that there is no effort being made here by the previous accountants to resolve this to everyone's satisfaction. Your potential client does seem to have good cause for complaint.

Unless you have any evidence to the contrary then there is no reason why you should not take this client on, and for you it should be an easy job to have a very satisifed client as the only way from here is up.

I would write to the accountants again, stressing your desire to sort this out and that you would be happy to act as a go between to try and reach a satisfactory conlusion so that you can all move on. I would then follow this up with a telephone call where you should be able to try and talk them round informally or gauge whether there are any unknown reasons why you may need to dig a bit deeper.

If they really won't play ball and make no attempt to respond to you or your potential client then inform the ICPA who will impartially investigate.

I had a pretty identical scenario very recently after a stalemate due to a stand off, and I managed to resolve it with a few calls, everything documented, going to the accountants office personally with a reduced cheque in full and final etc etc.

its usually down to poor communication by the accountant combined with a stubborn potential client who does not always understand the whole picture.

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By User deleted
23rd Jul 2008 16:42

Next step
If you REALLY want this client check your professional body rules but I believe I am correct in stating that the ACCA require you to send a 'handover letter' and if no reply is received after a reasonable time send another letter basically saying you are going to act and assume their is no reason why you shouldnt. You then have to piece together what you can from the accounts the client should have, and tax returns from HMRC. It isnt a course of action I would take.

My best advice is not to get involved.

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By User deleted
23rd Jul 2008 16:10

They are dragging their heels
To be honest, if they have been as slow and unhelpful dealing with this client's affairs as they have been dealing with their complaint, I can understand why this client is unhappy.

I have a letter from the client to their old accountants dated early april referring to a number of unreturned telephone calls and requesting a dialogue be opened regarding the outstanding fees. Having spoken to the old accountants, the holdup is because the credit controller needs to speak to the Managing Director regarding the complaint. So this issue has been dragging on for nearly 4 months because they haven't been able to get resolution their end, when in fact it is in their interests to provide the client with a definitive answer as to whether they are due a refund or not so that the outstanding monies can be paid.

The old accountant is ICPA.

Any suggestions for how I can get this moving along?

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By User deleted
23rd Jul 2008 14:47

A minefield
I think the longer you are in practice, the more wary you are of stories of bad previous accountants. Believe these stories at your peril as you may find out those mistakes were because information's not passed onto you and the large fees were because time was wasted left, right and centre by that client.

They may be telling the truth of course but be very wary of the new client and do not agree a fixed fee unless you want to bicker over the detail of what is to be provided and what was to the nth degree later. Also do you know what the "errors" were? It could be more advice from down the pub being used.

If you think the client is genuine and want to risk it then if they are chartered they can't not give you pass over information and clearance on a fee dispute case and I'd remind them of that with quotes from their professional handbook.

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By refs8
23rd Jul 2008 14:21

Old accountant
Personally I would ring the other accountant for an "off the record chat" other than that stear clear as the old accountants problem could become yours.

Also get some money on account and make sure anything you agree is fully documented in a letter to the client.

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By User deleted
23rd Jul 2008 12:10

Proceed with caution
As one who has been on the end of a very nasty unfounded client complaint I would say be very careful and try not to get involved.

Let the client sort the matter and then take them on, but be absolutely certain that you know the full story and that you are getting a truthful version.

Troublesome clients tend to remain that way and personally its not the sort of clients I'd want.

If you really want the client why not phone the other accountant and discuss the matter with them to try and help move it forward.

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