I've been approached by someone with 4 x small ltd co, all start ups. They were incorporated in Oct 2011 and nothing has happened since. Each Co has a bank accounts with some transactions, mainly start up cash from director and some cash withdrawals, perhaps 20 other trans in the year. The accounts will become >3mths late in 2 weeks time so director already has fines of £1500 which will double if he doesn't sort asap. I'm busy, could do without this, but tempted to quote as some cash before I go on hol would be good. I haven't met the client. We have tried to arrange twice, but he cancelled. I'm thinking £2,500 + VAT just because its a headache. Is that unrealistic? What would you charge? He's in London. I'm in Midlands.
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Is £2,500 enough?
I think you may regret this given the hassle he's already starting to give you!
Depends - if he seemed ok and I thought it would be a good job going forward I would probably charge £1,600 plus VAT as a decent fee for the work involved, and tell him if they traded more the fee would rise in future years.
I am in the Midlands too.
Out of interest
Why has he approached you? Meeting is always going to be a problem. Why 4 simultaneous start-ups? Why has no accounting been done?
As I type this I am beginning to think that this will turn out to be an enormous headache and I might pass on it. Whatever, make sure you get the money upfront.
Go for it
£2,500 is reasonable if each company is straightforward and all information is provided.
I'd make conditions:
1. He travels to you.
2. Paid in full before starting the work.
3. All information to be provided asap - within 7 days
4. Standing order in place for 2014 year end - starting in November.
5. 2013 year end - 50% paid on starting the work, 50% on completion.
If he says no walk away and remind him:
1. Additional fines he'll receive in a months time.
2. Trouble he'll have finding another accountant to complete the work in time.
I probably would
Yes go with your fee - all upfront. Every penny. Just to be safe. He emails / posts you the info so you're not bothering with wasting time trying to arrange meetings / having meetings.
If he doesn't provide all the info at the time you ask for it once and don't chase again. He's the one facing more fines.
It sounds like an easy enough job (client contact hassle aside) so if you eliminate the client hassle (by insisting on money upfront, asking once and not wasting more time) you're on a winner. Or you could PM me the details and I'll quote :)
You wait
4 start-ups with 4 bank accounts. I wonder how many transactions have gone through the correct account?
@Andy
Good point.
Clients with >1 ltd co typically and unwittingly create quite a lot of work just sorting out the inter-co a/cs.
With 4 companies, the permutations are endless! Well, 6 actually. A-B, A-C, A-D, B-C, B-D and C-D.
The obvious question is why he waited form Oct 11 to now to find an accountant? This will mop up your time for little profit
Walk away there be trouble ahead if you don't!!!
Does he want you to do it...
...at that fee??
I'm surprised in my experience if he sounds like the sort of client who is willing to pay £2500 for this.
I bet he expects it to be done very cheap!!