I recently took on a client mother and daughter set up where the daughter is the director and the mother is the employee of a limited company. The mother however pulls all the strings. The daughter, the director signed the 64-8 on the initial meeting and gave me money laudering evidence.
The year end for the accounts is 31st October 2014 and they gave me bank statements and invoices to prepare accounts up to 30th September 2014 which I did so I just needed the last month to finalise the accounts. They then do an about turn and decide they dont want me to do the accounts any further. I have invoiced them as a result as no one wastes my time like that. They didnt like what I charged so want proof they instructed me to act. Is the signed 64-8 enough proof?
I would have thought giving an accountant paperwork is also enough proof.
Looks like I will need to seek legal advice myself which is what they are saying they are going to do.
Related resources
Replies (17)
Please login or register to join the discussion.
What else have they signed?
Have a look at your letter of engagement, this should be your friend here and cover what happens if they leave part way through work etc. This contract would back up any small claims made.
If they didn't sign the letter of engagement, why did you engage in services they did not commission you to undertake?
When did you get their paperwork?
If they gave you the paperwork after they received your LOFE then there's a presumption of them agreeing to your terms even if they didn't sign it - merely them giving you the paperwork is tacit acceptance.
If however they didn't get your LOFE until after they left their paperwork with you, then I don't think you've a strong case at all.
I sent the LOE out as soon as possible after the initial meeting and they gave me the paperwork at the initial meeting. Verbally they told me they wanted me to prepare accounts and in a text they have indicated they wanted me to do accounts. They also gave me more records again and I have a written discussion about picking these records up. Feeling so fed up of accountancy now anyone want to buy 100 clients!!
Walk away
The signed 64-8 is undoubtedly a good indicator of their intentions, but has no contract status and without a signed LOE I think you are just going to find it too difficult to get anything out of this.
My advice is to chalk it down to experience, a lesson learned the hard way, and walk away before you waste any more time on this.
That is all I seemed to have done this year is walk away and put things down to experience and for this particular case I am not going to do so. If there is any chance that a small claims court can see that what their intentions were well then I have to go with that. Thanks for the advice from everyone of you it is much appreciated. Doesnt mean I will sleep well tonight but it is still appreciated!
You say "they didn't like my fee". It doesn't sound as if they are denying any liability to pay you anything - just that they are quibbling how much it should be. So invite them to make a counter-offer and take it from there. In the meantime hold on to their records.
Don't let it get you down
There's always the odd client like that.
Send them a letter explaining everything that happened and explain the basis of your fee.
If they don't pay your invoice or something close to it then take them to court. If you present all the evidence I am sure you will win.
Attitude problem?
You say that all you seem to have done this year is walk away and put things down to experience. So perhaps you should ask yourself why are you getting into these situations. With an attitude of " no one wastes my time like that" seems to indicate petty mindedness and unprofessionalism. You are to blame by not getting the engagement letter signed. Did you get clearance from the previous accountant.
Did you quote a fee?
If they agreed to the fee beforehand, then I would be thoroughly miffed too.
If it's a largish job, which it sounds like it could be, then it's always wise to get a quotation signed, and some money up front, before you start the work.
I know that isn't much help with this situation, but maybe something to think about for the future? It does filter out the time wasters and the bad payers.
.
Reading between the lines, did you actually discuss with them how much work you had done already and how much early termination would cost? This would be a lot more likely to have either got payment without quibble, or have you finish the job for this year at least. Just slapping a bill in is only going to get their backs up. You have to suck it up sometimes and just make those phone calls no matter how much it hurts the ego.
Starting work without the signed LOE in place is just poor practice on your part, as is not ensuring you have had some money down if this is (as it sounds) a longish engagement.
If this is not the first time this has happened to you, you very much need to look at how good your system are for contracts etc, how seriously you are taking risk of non-payment and client communication in terms of bills.
Client management is hard work.
Thanks again, I spoke to a legal advisor today and he gave me the reassurance that I have a good case for the small claims. Yes I agree I may not have got the LOE signed before starting work but I went on trust and face value as I knew the mother from years ago. But as I have learned from the last year trust and face value is no way to run a business.
I will do. They have said they will reply to my letter in fourteen days and I am beginning to sway with what Basil advised by offering them to pay 75%. However it all depends on what they come back fighting with.
An update- The court is on my side
I had my hearing today for this case at County Court and the court gave me judgement. The signed the 64-8 did help my case. As they gave me the bank statements and invoices to do the accounts that is a contract of services and the Judge awarded me judgement based on these circumstances.
He awarded me judgement on my original quote and not what I invoiced for based on the time spent. I was still happy to accept on the quote and win the case.
I was threatened as I left the court that this would cost my business dearly through loss of clients of which I am taking as an ideal threat.