How to get a client to sack their accountant

How to get a client to sack their accountant

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How can I, professionally and ethically, persuade a client to sack their current accountant, when I have found errors in their accounts or the cost is excessive?

My problem is the other way round from the Q. "How to sack a client?". I have a number of clients who I advise on accounts, taxation etc., whose accounts are produced by another accountant and whose accounts either have errors in, or are not optimised to reduce tax, or are simply much too expensive. These clients seem afraid to sack their accountants and appoint new ones - there appears to be a professional mystique which makes them think they can't shop around. Any suggestions how to approach this professionally and ethically?
Tricia Callow

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By The Minion
07th Mar 2005 11:18

Oneof the most common reasons
i have come across when clients are reluctant to change accountant is that they have been told (guess who told them) taht the taxman always investigates people who have changed accountants.

The other one is that if you go to x accountants you will get investigated!

We had this thrown at us by a potential client as a result we had to prove to them that we had only had six "books in" investigations in six years. They still insisted on Fee protection insurance (still unused), before they would change to us.

Daftest reason for actually changing accountants?

Easy and free parking!

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By TC1
07th Mar 2005 18:04

Thanks for the comment, David
Thanks for the comment about investigations, David - it's not a view that I was aware of.

Now the easy/free parking .... that I can offer!

Tricia.

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By Ken Howard
01st Mar 2005 14:15

Slowly and carefully...
I have been in this position many times over the years. You need to tread carefully and be absolutely certain of your facts. If you make too much fuss, unjustly, you may lose the clients and the other accountant may keep them!

What is your relationship with your clients and the other accountant? Presumably you are a practising accountant if you give accounts and tax advice - why is there another accountant? Are you certain that the other accountants aren't thinking the same about you? You say you advise on taxation and then say that the accounts aren't optimised to reduce tax - perhaps the other accountant thought they were simply preparing accounts and were expecting you to give the tax planning advice? You need to make sure that you are squeaky clean and have clear lines of responsibility first - check your own and the other firm's letter of engagement.

Do you know enough of the "full picture" of each client's affairs to know for certain that there are serious mistakes and bad advice. I have seen many sets of accounts and tax returns where my first thought has been a foul-up by their accountant, but upon acquiring a full knowledge, soon realised that what I thought were errors and/or ommissions were actually right in the circumstances. You can't assume that the other accountant is at fault.

As for their costs, by what are you gauging them to be expensive. You could recommend another firm to the client if you are certain of their quality of service and costs, but if the client is happy with what they are paying, I wouldn't really press this point as price is between "buyer and seller" and "market forces" - unless of course, they are charging for work they havn't done, inflating time sheets, etc.

As for mistakes, make sure the accounts contain mistakes, and that it is the other firm's fault and not yours or the client's due to poor record keeping. Does the client care about the mistake(s) - i.e. is s/he liable to pay too much tax because of it. The client is unlikely to be interested in cosmetic or technical errors that don't have an impact on him/her.

Don't go rushing in and telling your clients the other accountant should be sacked. If you are certain of your position, have an informal meeting or telephone call, provide factual information to them. It is far better to be pro-active and make suggestions and recommendations than simply to "slag off" the other firm. Listen to what the client is saying and don't get too deep until you sound them out - it may be that the client has been offered "tax optimisation" and rejected the advice, it may be that what you think are mistakes are really what the client told the accountant to show. Take it slowly and carefully!

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