new accountant

new accountant

Didn't find your answer?

Got an ex client who has found a new accountant.

Whats the minimum info one should provide for new accountant?

I have been asked to provide 2 yrs of everything including detailed tb.

Feel this is a bit excessive - not least because some entries (jnls etc) have no meaning to anyone but me.

Any experience/comments most welcome.

Thank you in advance.

Replies (11)

Please login or register to join the discussion.

avatar
By cparker87
08th Nov 2011 12:03

.

They might ask for x y z. You can give them a b c.

 

As long as you satisfy their main requirements I expect they will simply accept the response. I'd suggest a breakdown of balance sheet items, fixed asset register, details of capital allowances pools, personal tax affairs and details of any elections / potential charges arising.

 

Thanks (0)
avatar
By pauld
08th Nov 2011 12:03

excessive ? - maybe or maybe not...............

I dont think that is necessarily excessive. However when asking for information from previous accountants I normally request just the last years details e.g. TB, creditors, debtors, tax return etc as I feel if I ask for too much I might not get a reply for weeks.

I would indeed like the previous 2 years though as it would provide a useful history of the new client.

Recently, although I didnt ask for it, i received a summary of the last 20 years turnover, gross profit and net profit for a new client. The accountants records were so good it may be feel guilty taking the client away from him.

Thanks (1)
Teignmouth
By Paul Scholes
08th Nov 2011 12:50

Put yourself in their shoes

In general, if I am taking on a new client I don't feel I have sufficient to go on if I don't have two years details and so I too don't think such a request unreasonable, in fact come to think of it, I can't remember the last time I was asked for just one year.

The ideal is where both accountants use the same software (eg Iris) and so much of the info can be passed over in a data file.

Similarly, if there's anything unusual in the client's history, especially in the state of their books, then I would want to know as, unless I do, I'll just be perpetuating the need for loads of journals and/or corrections rather than educating the client to get their books right in the first place. 

Where I draw the line sometimes is if an accountant asks me for copies of accounts, tax returns, comps and other info that has been given to the client, ie I tend to suggest the new accountant asks the client first and only come back to me if the client has lost it.  After all how can a new accountant agree to act without having seen last year's accounts or tax return?

Thanks (1)
By ireallyshouldknowthisbut
08th Nov 2011 12:56

.

I find if you send it by email then its takes no time at all.

I tend to take a look through the main working file, remove any "in house" comments and send it complete, warts and all along with all the past returns.

I dont see any point in being awkward or withholding it.

Thanks (0)
avatar
By chatman
08th Nov 2011 14:59

Journals

Shouldn't journals be documented so that they do mean something to someone else? What would happen if you died and someone had to take over your work, or if the client got an investigation after leaving you? Surely the accounting records have to be understandable, otherwise they are not records.

Thanks (0)
Replying to User deleted:
avatar
By Dick Emery
10th Nov 2011 09:22

 

 

Chatman - you make a good point.

Thank you all for the input.

 

Rgds

 

 

 

Thanks (0)
Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
10th Nov 2011 10:37

2 years

That's interesting, Paul. I've never been asked for more than one year and, conversely, I've never felt the need to ask for more than one year (bearing in mind most sets of accounts have comparatives, so you end up with 2 years of accounts, if not the detail on the second year). I might have to give this some thought.

As to providing information, I will always email clearance info to new accountants and it really doesn't take long to do; the schedules are all there in the file. If it takes ages to compile, it's because we haven't formatted it properly - which is our problem, not theirs. If we've done our job right, it shouldn't take long to provide everything needed.

As cparker says, they might ask for x y z. You can give them a b c. This works both ways. I will ask for as much as I can think of. I don't expect to get all of it, but am not shy to come back a second time if they've omitted some important schedules or breakdowns. Likewise if I need to provide info, I will provide what I've got, and what I would like to be given. It might not directly correspond to their list, but that's possibly to do with internal procedures, how software presents information, and what I have available; all the information is there.

 

Thanks (0)
Giraffe
By Luke
10th Nov 2011 11:37

I'm with Monsoon

I've only ever been asked for one year and I've only ever asked for one year.  As Monsoon says, there are usually comparatives and I don't normally care about the detail in the prior year. Should I??

 

Thanks (0)
Teignmouth
By Paul Scholes
10th Nov 2011 14:14

horses for courses

I too always reply by email and think it's becoming the norm.

Suppose it's what I've got used to (whether being asked or doing the asking) and 2 years accounts gives me 3 years with comparatives.  I  also like to see 2 year's of tax (I've yet to see a set of comps or a return with comparatives....but what a good idea?). 

Not to say that I will always use all the info, especially if the business is tiny, but it can be useful when I put stats together for clients "last X years" P&Ls etc, plus with the possibility of HMRC opening up earlier years or (in one case) having to go back 4 years to correct something and I'd much rather have the info to hand than have to contact the old accountant, especially if I think they have cocked up in some way.

No hard and fast rule and I certainly would never go the route some of the big firms do (the last one of those involved a 5 page professional clearance letter).

In the old days, when we had them, we'd just post the general & working papers files off to the new accountants.  Saved on storage but I now cringe to think that we didn't get them to sign for them.

Thanks (0)
avatar
By Anne Marie Sewell
11th Nov 2011 11:54

Handover

I dumped a client who was really messing me about.

The new agent asked for so little information, it was obvious they were cheap because they didn't do much. Or didn't do much very well. I sent them more so that hopefully they won't come back for the right information after I have archived.

I think the better accountants would always ask for as much information as possible and two years is a good idea. If it is difficult to produce then I'm sure they can't insist on that extra year without paying you for the extra work involved.

 

 

 

Thanks (0)
avatar
By lechiffre
11th Nov 2011 14:17

As much as you NEED

We generally only ask for the last finalised year but if I needed additional information going back x years then I would ask for it.

It totally depends on the circumstances of the case surely?

Thanks (0)