Information from a previous accountant

Information from a previous accountant

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We recently obatined a new client and wrote the normal professional clearance letter and requested certain information. The clearance came after 3 months but still no information. The old accountant said there was an "unresolved issue" which I think may be an unpaid bill on one of the director's personal tax affairs i.e.NOTHING to do with the company. There is particularly some information I need in connection with a buy-out of another shareholder 2 years ago.

Any suggestions as to how to get the previous guy to co-operate (he is obviously very upset about losing the client)? And how can I find out what qualification, if any, he has? Worth reporting him to his or my Institute (ICAEW)?

Any thoughts welcome.
Ian

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By User deleted
21st Aug 2008 10:59

The Medal's in the post!
But seriously, that just emphasisies my point, if you are doing your job and you know your clients you can manage them and avoid bad debts - and losing clients.

In general a client changing because of fees is not worth having, most change either because of a failure in the relationship for whatever reason or a change in circumstance, usually relocation.

The first should never happen if you are doing your job right, the second you often can't do anything about.

The ones changing for fees often have had their accountant sell out and been hit with fee hikes and a fall in service levels (often done as constructive dismissal as they are not the business the new owner was interested in).

If you know your clients, you don't let risky ones run up debt inthe first place.

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By User deleted
20th Aug 2008 17:17

Simplistic?
....maybe, but in 15 years of running my own business I've never had a bad debt and I have only ever lost one client to another accountant (after he'd paid his fees of course).

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By User deleted
20th Aug 2008 11:02

Simplistic
Rather a simplistic approach from Peter, and I hope he is not qualified as I would have thought advocating law breaking would bring the profession into disrepute! You need to know the story from both sides as to why fee's are unpaid.

I have found that the accountants that don't hand over the paperwork are generally the ones that don't get paid because they have p****d off the client either through continued delays or incompetent advice.

If you manage your clients you will know the D4s and get paid up front. If you don't and they go then the sooner I send the information off and close the file the better. I have more useful things to do than play ping pong correspondence with the new accountant. If you have been stupid enough to let them run up a big fee then that's your look out.

Shut the file and move on, no point crying over spilt milk. Look at the big picture, for every D4 that burns your fingers there is an A1 that pays the mortgage! If you want your money then do a ccj, they cost less than the time you will waste otherwise.

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By User deleted
19th Aug 2008 17:13

,
When I take on a new client and the old accountant does not pass on the necessary paperwork within a reasonable time I ring them up and ask why?

More often than not it's because they have not been paid for their work.

I then tell the client that I am unable to act for them because, let's face it, if they walk away from one accountant without paying then they'll do the same to you.

No matter what the legalities I certainly would not part with paperwork without first being paid for the work I'd done. If the director needs to fullfil his obligations then he should first make sure he pays his bills so that he then has all his info to meet his legal duties.

Where else can you get work done for free?

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By User deleted
19th Aug 2008 12:46

Companies Act
An accountant has no legal right to retain information on a company.

The directors obligations under the Companies Act outweigh the right to lien. This extends to the accountants papers if they are essential to explain the company's transactions.

Assuming the old accountant is regulated I generally find reminding them that they are commiting a criminal offence by witholding company information gets fairly quick results (even if he is not regulated this often works).

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By User deleted
19th Aug 2008 07:53

Paperwork?
The outgoing accountant should have issued a letter of disengagement, and this should have set out the terms for supplying information to the new accountant. You need to review this, if it exists, and it may turn out that the outgoing accountant requires payment in advance for this work before he supplies the information.

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