Michael Beaver
Member Since: 10th Jul 2013
Likes: 25
Thanks: 380
I'm a Chartered Accountant with over two decades of experience in practice and in industry.
Having trained at a Big 6 (then 5, then 4) firm in Australia, I trained in tax, audit and consulting and then moved into industry in the financial services sector, which brought me to the UK in early 2005.
After several stints in senior finance positions at UK banks, and being the CFO for a City of London equities exchange for 6 years, I set up my own practice in early 2014.
My client list includes mainly finance and technology start ups, but also includes fashion companies, film editors and retail and property businesses.
My answers
From my understanding the FRC investigations are resourced and funded by the ICAEW so the fines are supposed to reimburse them for those costs, given that many investigations don't lead to any fines at all. The scheme clearly didn't anticipate such big fines!
And if I were a client being subject to those price increases, I would be standing firm with my middle finger raised in their direction.
There's such a thing as knowing how and when to read the room. Then there's..... this.
I admit this kind of thing is scary. We have AML procedures in place and tools for ID verification, but when you are relying on your staff to keep to the procedures it's impossible to be sure that they are. Even an annual random sample won't pick up any that slip through the cracks.
What if you have a review and get a very unlucky sample?
With yet another authorisation coming for MTDfITSA too!
I've gotten quite ruthless at disengaging clients who drag us down. I always see this as an opportunity to go out and find a new one we like more. Someone on here many years ago put it best: "If, when a client calls you, your heart sinks when you see their name or number on your phone every single time, then it's time to say goodbye to them."
So far since the end of tax season we've disengaged clients for the following reasons:
1. One client with fairly simple affairs that will only talk to me as the owner of the practice, rather than any of my eminently qualified staff, as she thinks she deserves and is paying for 'only the best'.
2. One client who only joined recently. We set out advice on sole trader vs incorporating, spent two separate one hour sessions going through the pros and cons. She has since spoken to every other (unqualified) person she can talk to, so we find ourselves defending our advice against the 'advice' from 'the man at the pub' type people over and over again.
3. Payroll only client who never stuck to the deadlines that they had agreed, and always insisted on last minute changes even when I was unavailable. Including once when I was at a funeral.
4. One client who always demanded prompt service but for the third year in a row we were chasing her unpaid invoice 9 months after it was issued.
[quote=philippa101]
...but accountants provide a service and it's up to them to stay in touch over the year which is what my article was about.
Why is up to the accountant to stay in touch? As a business owner are you unable to articulate your needs, or at least have an idea of what further service you are looking for? Is your relationship with your accountant so poor that you're scared of picking up the phone to them first?
We interact with the client from our side at least twice a year doing compliance, sometimes more often if we provide payroll or VAT service. However there are some we only interact with once a year.
We make it VERY clear when onboarding that what they are paying for is not just the compliance but for our availability as well. However, we won't be calling them every month on the off chance they have a question or need something extra. We make it clear that the phone is there and we will pick it up when they call at any time during the year. And they can call about any accounting or tax topic, regardless of how silly they think the question is or how wild the idea.
The kind of client who says 'I pay you for a service and you should be keeping in contact with me', in my experience, is exactly the kind of client who will get angry because they didn't get advice that they never actually asked for, because they never thought to let the accountant know of a new situation or change of circumstance. Those clients are the ones we very kindly, but very firmly, show the door.
With over 700 clients I'd spend the whole time calling them saying 'do you need anything this month?' rather than actually doing any value add work at all. Or indeed actually helping those clients who do need it.
Interestingly, the radio ads are still saying that you need to file by 31st January.
There is. Well, technically the tax returns are still due by 31 January, but HMRC will suspend automatic late filing penalties provided that the tax returns are filed by 28th February.
I am worried, now!
I am worried, now!