How to deal with this

How to deal with this

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During this year we identified that we had high risk, low reward demanding client for whom we had done a lot of work which could never be recovered simply because everyone at the office was a little bit scared of the MD of the client.

Taking the coward's way out, we wrote to the client and nicely asked them to find someone else.

This they did, and we hoped that was that.

Since then, the new accountant has asked for and been given for each of the 5 years we did the job:

Accounts
Trial balances
CT returns
SAR's
Letter of Rep
Lead schedules
Breakdowns of debtors and creditors
All of the books and records (it was a manual system)
Signed director’s loan accounts
Mileage records
HP agreements
Payroll records and backups
Tax documents in relation to a company enquiry in 2005

And still they are saying that we have not been helpful!

We keep getting more correspondence and they are clearly "auditing" everything we have ever done in an attempt to get the client to make some form of PI claim (and yes we have already told the PI Company this)

Since the handover, the MD has been subject to an HMRC enquiry into his personal affairs and the new accountants appear to have stated the absolute opposite of that we stated when the company was enquired into.

Our enquiry went to the General Commissioners and I am please to say was victorious for us.

Has anyone got any suggestions or experience of how to deal with (or preferably end) a situation like this.

Edward

Edward Davies

Replies (4)

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By Robert Hurn
12th Dec 2007 19:31

Say No
I would recommend responding to any further request for information along the lines of “we have already supplied you with information sufficient for a competent accountant to take over the client’s affairs and must respectfully advise you that the client is now yours, thus you must work with the client to resolve any difficulties you may be experiencing”.

You have clearly bent over backwards to assist the new accountant and it appears that your helpfulness is being interpreted as weakness. The client and new accountant appear to be under the impression that you are obliged to assist them, you are not, particularly on an unpaid basis.

As you have suspicions as to the new accountant’s motives it would be advisable to ask you PI Company to agree to the text of any future correspondence, just to be on the safe side.

It is never easy to say no, but better to feel uncomfortable for a few minutes than for the next year or however long this could drag on.

Good luck

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By AnonymousUser
12th Dec 2007 20:55

Payment please
Should you receive any further requests you should state that further information must be paid for in advance and charge it at the partners hourly rate plus £4 for each item photocopied

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Teignmouth
By Paul Scholes
12th Dec 2007 22:39

Stop
Hi Edward, what a tale, but it sounds like the bullying is continuing.

Surely you have gone way beyond what would be regarded as reasonable in responding & assisting the new accountants and so I suggest you just stop. If more information is requested and they can not find it elsewhere and you have the time, charge for your time and effort and if you don't just say no.


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By The Minion
14th Dec 2007 15:20

been there done that etc
A few points

Aggressive approach
Send a letter saying you have reviewed your billing systemand have found that they have not been invoiced correctly.

Raise the invoice and get a debt collection company who only charge by results to chase the debt.

Tell the new accountants you will be charging for any additional assistance and get their senior partner to accept (in writing) that they will be responsible for the debt.

Passive approach
Don't second guess on the PI claim, lots of non payers come up with spurious claims when suddenly you ask to be paid.

If the new accountants still want you to supply further information ask them to agree your fee and get them to pay in advance for it.

You have more than complied with any institute etc requirement for supplying info etc.

As you sit eating your christmas dinner ask yourself, if the new accountants are doing all this major level review work, what are their chances of getting paid for it?

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