Should I just drop the new accountants?

[Christiane]

I can't believe I'm in that position but hey, another challenge!!!

I appointed a new accountant in January. He promised that the accounts would be done monthly, with invoices recorded every other week, etc. All was agreed verbally then I signed the engagement letter.

He has had the info for 1 month a half and I now understand nothing has been done. I need to know desperately how we did in Jan/Feb and he said that he will pick up the invoices next month, which means I probably won't have those P&L until May at the earliest. He's talking about doing things quarterly when I need them done monthly. It's as if we never had that conversation about how important it is for me at the moment to get monthly accounts.

I feel very much let down and misled. I'm about to write to him.

Can I just switch back to my previous accountant as I know I can give him the invoices on Monday and I'll probably have a P&L within 2 to 3 weeks? He had made a counter offer to match that of the new accountant so I know he's keen to get me back on his books, and I'm starting to think that he was rather good after all.

I just feel so annoyed, I really need up to date accounts!

 

[gouldie0]

Hi,

Have you spoken with your new accountant to allow him the chance to explain why the work hasn't been completed? It may be that there is a valid reason and if you explain the importance of having the information for Jan/Feb he may be able to prioritise this and put it to the top of his pile?

It is odd that the terms agreed were or monthly completion and now he has switched to quarterly. How do you pay his fee's, do you pay a set monthly fee?

What did the terms of engagement state around timescales for completion and cancelling the service?

I think you'd be within your right to cancel the service as the terms you originally to aren't be adhered too.

Kind Regards

Neil

 

[Christiane]

I never got a copy of the agreement, which is another issue.

I've been chasing him for updates for the last 2 weeks. They've had 6 weeks to get the ball rolling. I pay monthly and needless to say I haven't paid this month.

I have a lot on my plate with trying to avoid a redundancy, moving to a unit to save money, opening more hours in a bid to increase footfall, dealing with new advertising ideas which take a lot of my time, etc. I just didn't need that. I got really upset.

I called my previous accountant and he was very surprised nothing had been done. He's of course happy to pick up the pieces!

I'm wondering whether most people get their accounts done quarterly. I think at some point in the growth of a company monthly accounts are becoming a necessity.

 

[DFL]

Why did you part company with your previous accountant?

 

[Christiane]

Why did you part company with your previous accountant?

I'm starting to wonder!

I posted really to know if I wasn't unreasonable. I talked to a couple of people too who seem to think I am not. :redface:

 

[elaine@cheapaccounting]

I'm about to write to him.

Can I just ask ...

Have you spoken to him about your concerns and clarified your needs, including asking for a copy of the engagement letter?



He may well have assumed that you would keep a copy of the letter that you signed.

It may be just initially teething issues and communication is absolutely the key is getting these sorted out.




You must have had a reason to leave your original accountant and it seems a waste of your time if you do not give the new guy a chance.




Have a chat with him and outline your concerns.




Then if things do not meet your needs then change again.

 

[MyAccountantOnline]

Can I just switch back to my previous accountant

Yes - you are the paying client an accountant is a service provider. You are quite free to pick and choose who you want to act for you

 

[MyAccountantOnline]

I'm wondering whether most people get their accounts done quarterly. I think at some point in the growth of a company monthly accounts are becoming a necessity.

I wouldnt say so - it's personal choice.

In my practice where we prepare clients management accounts as well as the year end accounts we prepare monthly accounts as standard.

 

[Bob]

If this is the accountant to whom you are proposing to return, it may be better for you to try someone else. Maybe third time lucky http://www.ukbusinessforums.co.uk/forums/showthread.php?t=184897

 

[Christiane]

The new accountant came to see me on three occasions, two of these were for 2 hours so he fully understood what I required. To turn around and talk about quarterly accounts, not have done anything for 6 weeks when they had everything to get started, and waiting another 4 weeks before picking up the paperwork, I just can't understand.

When I talked to the previous accountant, he agreed to catch up straight away. He had made a counter offer at the time but it was too late. I'm more concerned about getting the accounts up to date than anything else.

 

[elaine@cheapaccounting]

Sounds like you have already decided to go back to your old accountant - good luck

 

[MyAccountantOnline]

I'm more concerned about getting the accounts up to date than anything else.

Any professional accountant with an organised workload should be able to sort your accounts out for you quickly so please dont rush back to your former accountant for the wrong reasons. But good luck and hope all works out for you.

 

[Bob]

It does seem from your earlier posts that you are risking jumping back into the frying pan out of the fire but good luck with whatever you decide to do

 

[DeanCo]

It's as if we never had that conversation about how important it is for me at the moment to get monthly accounts.

Some companies will say almost anything these days to get you to sign up. Did the letter of engagement include all the details you discussed?

 

[accounting-help]

Like most things in business it is a good idea to get important details in writing.

I too would suggest a third accountant since you were unhappy enough to leave in the first place! Do you have any friends who can make a recommendation?

Best of luck!

 

[mr. mischief]

I've had a few "clients" sign up lately only to return to their previous accountants who had matched both my fee and the extra service levels I had in my letter of engagement. Time will tell, but unless these guys have a brain transplant they will either sneak in rip-off charges or fall well short on the service levels within 6 months in my view.

Whether you need monthly or quarterly accounts is an interesting question. Exactly how relevant is the information in a P&L and a balance sheet to you in making business decisions? Clearly if an external funding provider or similar requires monthly accounts fair enough, but for most clients who are not part of a PLC group or similar accounts are not all that revelant to business decisions. I am going to be shot on here for saying this, but it's true in my view. Even PLC accounts can be quite misleading at times, I've been involved in one set of PLC books where £25BN of liability was missed off the accounts - whoops a daisy!

If a client wants monthly or quarterly management accounts that is what they get. But I like to discuss with clients "what are the FOUR - and only 4 - numbers that really matter to your business over the next 12 months?"

Then report on those. Some will be financial, some not. Examples:

Gross margin, order intake, order pipeline, customer satisfaction index, net margin, spoilage, sales per square foot, 4 week future cash forecast, prospect conversion rate.

 

[Christiane]

Some companies will say almost anything these days to get you to sign up. Did the letter of engagement include all the details you discussed?

This is exactly how I feel! The letter was a bog standard one, no mention of our discussions.

The manager (I think, he didn't introduce himself as such) from the 'new' accountant firm called me today to discuss. I didn't mince my words and he agreed they *failed* to reach their normal standards on this occasion, that that's not how they deal with new clients, etc...

I know it sounds like I'm rushing back to the previous guy but at least we know how to work with each other and I can concentrate on getting organised to move units (moving at Easter! ). I keep having staff issues at the moment which doesn't help with my stress levels either! I could sleep for days!...but I will get through this! :redface: