Previous Firm witholding Handover Info

What Action can be taken?

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have got a limited company client come to us from another firm.

The outgoing firm, are refusing to provide any handover information as the client has not paid them (as they had filed accounts wihtout approval)

After some digging I can find no evidence the firm as being regulated by any professional body or being qualified, so we cannot make a complaint against them

The accounts appear to have soem major discprencies and so we are hoping that handover info would in part clear some of these

what if anything can we / the client do now to get the handover?

Replies (11)

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By penelope pitstop
13th Mar 2019 16:33

Sorry. Misread this.
Sounds messy.
Would not drop old firm in it yet.
Maybe client is less than honest. In my experience, those previous clients of mine who have protested too loudly they are honest and innocent have been the worst to deal with and the shadiest.

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By Matrix
13th Mar 2019 14:21

"We" or You should do nothing. Don't get involved.

Up to the client to take legal advice and to pay or not to pay them. Do the best you can with the info you have and make sure you get paid.

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counting
By Counting numbers
13th Mar 2019 14:31

I completely agree with @Matrix, this is not your battle it is your clients. It may seem like your client has been wronged by this accountant but please do bear in mind that there are two sides to every story. Be cautious and do the best you can with the information you have been provided.

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By andy.partridge
13th Mar 2019 14:55

If you are sure of the facts, and only if you are sure of the facts, you could tackle them - sorry, ask them politely - on social media. Private obdurance is not good PR.

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By Vaughan Blake1
13th Mar 2019 16:15

Unless the accounts are unusually complicated you should be able to prepare the current accounts without the handover stuff. You should have a copy of the accounts together with access to the client's prime records.

Not ideal I grant you, but if the closing balances are correct, then you will be OK.

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By bernard michael
14th Mar 2019 09:55

Why didn't the client approve the accounts?
Could he give you his reasons so you can adjust any b/f balances

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By SXGuy
14th Mar 2019 12:09

How about ask the client to pay the outstanding fee?
Havent seen one person advise this yet, and personally if an ex client owed me money, I wouldn't hand anything over either. Its within my rights to withhold info until payment is received if ive already done the work. Arguing about whether the client signed them off or not, wont take away this fact.

If the accountant hands it all over, what leverage does he/she then have to recover their fees? none.

Apart from the fact, you should be able to carry on from whatever the client has, I don't find it unreasonable to at least advise the fee is paid.

Id hate you to be in the same boat, when you agree to work on credit, and the client decides to go elsewhere and skip on your fees also.

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Replying to SXGuy:
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By meadowsaw227
15th Mar 2019 10:40

If the outgoing accountants filed the accounts without a signature they deserve everything that may be coming to them.

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By sallycox
15th Mar 2019 10:17

I hope your accounting is better than your spelling, otherwise this client might leave you too.

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By rawa363
15th Mar 2019 10:58

I would decline them as a client. if they are not paying the previous accountant you can be sure they will not pay you.

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7om
By Tom 7000
15th Mar 2019 18:03

Well if last years accounts are wrong... get the client to pay you to do them again and resubmit. No handover info then....and you have to do this if you know its wrong

Everything sorted and some extra income for you

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