Share this content
0
847

Changing Accountant

How to change accountants

Hi All,

I'm a student and after some help. When a client changes accountant what is the new accountant required to do? What if the client wants to arrange the change of accountant themselves? It seams things aren't done in real life how the text book explains, how formal does the transition need to be ect? What is the most modern way of doing it? 

Tom

Replies

Please login or register to join the discussion.

avatar
10th Nov 2017 17:38

What makes you think it isn't done according to "the text book"?

Is this question part of your studies?

Thanks (0)
avatar
By Tom1993
to Accountant A
10th Nov 2017 17:55

It's not directly part of my studies but me and another student were discussing it and when we researched it we noticed various answers some of which didn't correspond to text book examples so I'm just curious what methods people have.

Thanks (0)
avatar
to Tom1993
10th Nov 2017 18:12

Tom1993 wrote:

It's not directly part of my studies but me and another student were discussing it and when we researched it we noticed various answers some of which didn't correspond to text book examples so I'm just curious what methods people have.

Run us through what you've found and we'll be able to comment.

Thanks (0)
avatar
to Tom1993
10th Nov 2017 18:13

What are the procedures described in your book?

Thanks (0)
10th Nov 2017 18:09

Are you and a friend thinking of setting up a practice together? Seems a strange thing to study. What are the discrepancies in the 'text books'?

Thanks (0)
By Ruddles
10th Nov 2017 18:09

We do it by the book. Which may or may not be the same book on your bookshelf.

Thanks (1)
avatar
10th Nov 2017 19:04

They just go down to the pound and get a new one.

Thanks (0)
By DJKL
10th Nov 2017 19:05

These things always depend upon the net book's value.

Thanks (2)
11th Nov 2017 12:20

A change of accountant tends to happen in one of two ways, either the client wants to change or the accountant forces the issue. In both cases it tends to happen when the relationship has broken down but can also happen if say the client has moved to a new area and wants a local firm or the accountant is retiring.

The accounting bodies have rules for changes in appointment but, in general, the outgoing accountant will send the client a disengagement note of the state of play in the client's affairs and what the firm is, or is not, responsible for in future for any work in progress.

The new accountant will send a request to the previous accountant for "professional clearance, ie to find out if there's any reason why they should not take over the affairs and, subject to this, will also request any take over information they need regarding the history of the client's affairs.

The old accountant is only able to respond to this request if the client has given them authority to do so.

Thanks (3)
By Brunel
to Paul Scholes
11th Nov 2017 15:50

When did you last refuse clearance?

Thanks (0)
to Brunel
11th Nov 2017 17:22

Never "refused" clearance. I once ignored a clearance request from a firm that the client had never heard of and, on a handful of occasions, have informed prospective accountant of reasons why they might want to think twice about taking up the appointment.

Why do you ask?

Thanks (1)
to Paul Scholes
11th Nov 2017 17:43

I had one where the 'new' firm had merely met my client at a social engagement. Commercial or desperate? Anyway, they didn't get the gig.

Thanks (0)
By Brunel
to Paul Scholes
11th Nov 2017 17:55

Curiosity.

Most of the issues I get with clearance requests for new clients are around unpaid fees. Some firms are really slow dealing with requests.

I've warned others a couple of times when the departing client was one I was glad to see the back of. I'm sacking no-hopers sooner now than I used to. Maybe in future some clients won't be able to get anyone to act for them?

Thanks (0)
Share this content