Professional courtesy

Professional courtesy

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I am a chartered accountant and run a sole trader practise and a book keeping company (ltd).

One of my book-keeping clients wants to set up a second entirely seperate company, and wants me to arrange to be both the accountant and book-keeper.

The question is, do I need to get in touch with the accountant on the old company. Would professional courtesy letters be required.

many thanks
Sarah Kedgely

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By User deleted
09th May 2006 14:30

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Hi Sarah,

If you are forming a new company then I don’t see the need to contact the other accountant, but, a phone call to the other accountant to let them know you will be forming another company and acting for it would not go amiss, as the two of you will need to liase concerning tax planning etc.

It would be interesting to know why the client isn’t using the other accountant as his/her accountant and you for bookkeeping as is the current state of play, is there something that he/she is trying to hide, I am not suggesting anything is amiss but it wouldn’t be the first case of a client using more than one advisor to muddy the waters!

Hope this has been of help.

Jason
http://www.holdenassociates.co.uk
http://www.sme-blog.com
http://www.sbqaforum.com

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By User deleted
09th May 2006 14:46

What about client confidentiality though?
I wouldn't send a letter as it is a new company. If you are going to contact the other accountant I would get clearance from the client in writing otherwise you are in breach of confidentiality.

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By peterlashmar
10th May 2006 12:39

Professional courtesy/ etiquette
This seems to be a rum state of affairs. Why would the client wish to have 2 separate firms of accountants? Without some very good reasons ( industry expertise, location, charging rates, etc.) this sounds most odd as there must be a duplication of work re tax planning, remuneration/ dividend structure etc.

There is the potential for a big problem in correctly accounting for any inter-company transactions.

As he seems to be moving towards favouring you suggest that he uses you for everything!

Good luck but be careful.

Peter Lashmar

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