Yeah far better to use the Emperor's New Clothes of Xero etc
It has it's place, but there are many of my clients for whom SAGE is a much better option. Generally the larger ones, but not in all cases.
I don’t think you are correct
If the client was paying Xero directly and he stopped paying the monthly fee after a few reminders they would block your access.
Presumably some of the fees that are outstanding relate to xero subs the accountant has to paid to Xero
If he is refusing to pay why would the accountant be expected to keep paying them on his behalf
I don't think anyone is expecting the outgoing accountant to keep paying the Xero subs. The accountant is threatening to remove access unless their (disputed) fees are paid.
If the client stopped paying Xero then Xero may well terminate the subscription - but then again Xero aren't regulated by ICAEW and the client might have to take legal action to get a backup or reinstatement.
Certainly I wouldn't be removing the client's Xero access if I was the outgoing accountant - I'd be transferring it to read only or transferring the sub to the new accountant and taking legal action about my costs if appropriate.
The question is, do the Xero records form the company's accounting records under the companies act? If the answer is yes, then as an ICAEW firm we cant exercise a lien over those records - straight forward. It's likely that the reason for this isn't just ethical but also legal and as such it's questionable as to whether anyone else can, but that's for them to worry about.
Also let's not forget that some of these fees are disputed. It's another good reason to invoice people 'properly' and itemise the software/work/etc separately rather than charge a random 'subscription' or monthly retainer I guess.
If you go into the client's user privileges on Xero and tick the MTD permission box, does that solve it? Does the client have read-only access or full?
Never heard of it, no intention of going.
I waste one day a year at Accountex and that's enough trade shows for me.
What did the engagement letter the guy signed say.
If he is paying a monthly retainer to the accountant for accounting services including access to Xero software as part of that arrangement I would think it is perfectly reasonable to withdraw the access to the software along with his support if the payment has stopped.
Are these not accounting records as set out in S386 Companies Act, in which case it is certainly not reasonable to withdraw access?
And that's before we get into GDPR/Data access rights which aren't my department (fortunately) but which might also give the client a right to access the data.
Stopping processing, fine. Making it read-only, probably fine. Withdrawing access entirely, I'd say definitely not fine.
Making it read-only, disconnecting the bank feed, deleting all the bank rules and making it a pain in the arse[***] going forward? Possibly a bit vindictive but mistakes do happen.
Overall I'd just transfer over the subscription though.
Is the outgoing firm an ICAEW member? Lien over limited company accounting records is covered by Institute guidance as follows:
"A lien cannot be asserted over accounting records as defined in s.386 Companies Act 2006 (‘Accounting Records’) because such records are required8 to be kept as set out in the Companies Act 2006, and must be open to inspection in accordance with the provisions of that Act."
I'd say, in the modern era, Xero data constitutes the company's accounting records. As such the outgoing accountants shouldn't be withholding access completely. Thereon in, we are into grey areas over read-only access etc.
Is it a limited company client?
I think it goes up £50 to £100 most years. Frustrating but not huge I suppose.
It's even calculated by APR with the 'Bank Variable Base Rate' being based upon Bank of England Base Rate plus margin!
I know. Tell be the difference between this and any other 95%FTV mortgage:
-Rental rate fixed until 30 September 2022
-From 1 October 2022 reverts to Al Rayan Bank Variable Rental Rate which for HPP = 4.74% (Bank of England Base Rate + 3.99% margin)
-Administration fee of £999
Depends on the client surely.
Generally 'HMRC might ask what you are living on so I need to document it for my file' is a goon one - or 'You have unused PA and you might be eligible for marriage allowance transfer unless you spouse earns a lot - do they?
Other than that, point out that fact that they've only declared £4,32 of bank interest but have funded nine years of losses and ask whether all they savings they are living on are in ISAs.