Invoiced for an email - Help please!

UnderThe_Cosh

Hi all,

Thanks for your replies. It is certainly easing my worries.
The following is on his website...

This company was founded by its director, X.

X is an honours graduate of xxx University, B.A.(Hons.) (Dunelm). Upon graduating, he was awarded a xxx University private research studentship and from his research thesis he obtained an M.A. from xxx University.

Mr. X went on to 3 year articles with a firm of chartered accountants and became a member of the Institute of Chartered Accountants in England and Wales, (A.C.A). After obtaining varied experience from several firms of chartered accountants he received offers of lectureships in accountancy. To pursue those offers he obtained a Postgraduate Certificate in Education (Business Studies) from yyy University, but returned to general accountancy practice.

Subsequently, Mr. X qualified as a Chartered Certified Accountant and became a member of the Association of Chartered Certified Accountants, (A.C.C.A.).

Mr. X is now a fellow of the Institute of Financial Accountants, the I.F.A.; a fellow of the Association of Certified Public Accountants, the A.C.P.A.; a fellow of the Federation of Tax Advisers, the F.T.A.; a fellow of the Association of International Accountants, the A.I.A..

persa

Ok, I've had a look at the website and this guy's experience sounds a little unusual. Who qualifies as an ACA and then converts to an ACCA? The ACA, CA and ACCA are broadly comparable, but snobs prefer the ACA and CA (more old school). It's therefore an odd move to have one of those and then convert to the ACCA.

Anyway, I tried to check his ACA status by searching for him here: http://membersearch.icaew.com

I also tried to verify his membership of ACCA here:
https://www.acca-business.org/dom/

Nothing on either count, and yet he has a distinctive name. Spidey sense tingling.

I don't think you have to be qualified to join the IFA, FTA, AIA or ACPA, I think you can join as an "experienced" accountant. And as we all (should?) know, the term "accountant" is not a protected one.

Finally found him on the AIA listed as a member:
http://www.aiaworldwide.com/find-an-international-accountant

The complaints procedure for that organisation is listed here: http://www.aiaworldwide.com/sites/default/files/related-documents/Complaint-Guidelines.pdf

And here's their code of ethics. Every body has one: http://www.aiaworldwide.com/sites/default/files/related-documents/Code%20of%20Ethics_0.pdf

I would refer him to the following points:

110 - his obligation to act fairly and straightforward in his dealings with you
150 - his obligation to act professionally and not discredit the profession
240.2 - his failure to make you aware of the basis on which fees would be charged

If you make clear you intend to complain to his professional body if he refuses to credit the disputed invoice, he really should drop it. £21 cannot be worth the hassle - and on some level, he must know he's chancing his luck.

Don't pay him. No engagement, no fee.

mumstheword***

People like that give accountants a bad name. Hope you resolve it. As Persa says you just wouldn't change from ACA to ACCA and we wouldn't even charge out a junior at £25.

UnderThe_Cosh

Wow what an amazing post persa. Thank you so much.
MSE never ceases to amaze me as to the wonderful people on here (talented too!).


When he sent me the invoice I replied. He then sent the reply below. The first bit is quoting me.


"Surely you should have sent me some information about how you operated before deciding I was instantly on the clock"

1. We don't need to, all of our adverts labour the fact we charge £25 per hour. Therefore, if you solicit our advice, as you did, you are subject to contract.

2. Sorry if the work you wanted didn't work out but that's not my fault.

3. The invoice is due and payable within 28 days, but in view of your worklessness you can have more time to pay if you wish.

persa

I think I'd send something along the following lines. Just a suggestion though.

"Thank you for your email. To reiterate, when I first contacted you to ascertain whether you might be able to assist, you provided unsolicited advice without first agreeing a contract for services between us.

I understand you are a member of the AIA, and per your code of ethics, you are required to make all clients aware of the basis on which fees are charged before undertaking work. I dispute that you made me aware of such a basis, and regretfully, I also do not agree that a contract was formed at any point. Enquiring as to whether you could assist with my particular circumstances does not equate to engaging you to advise on those circumstances.

Indeed, given you did not ask me for any documentation in order for you to carry out client acceptance, it seems odd to me that you would think we had formalised a relationship in that way. No contract was formed between us, therefore the adverts stating your terms are simply not in point.

As the project was aborted and I therefore did not require your services as expected, I appreciate you may feel I have wasted your time and I do apologise for any such inconvenience. This was never my intention. However, I trust on reexamining the facts you can agree no contract was actually entered into, and no fee is therefore payable.

I would be grateful if you could kindly issue a credit note for £21 to cancel the outstanding debt, and draw this matter to a close."

UnderThe_Cosh

Hi,

My initial thought was that I have told him that I do not consider he was engaged by me and I am not going to pay. I was just going to ignore any future demands. But more than one person has talked about getting a credit note issued. Are there implications of this invoice not being cancelled in this way please?

I want to thank you for your help it is very kind of you (all).

fatbelly

In theory he could sell the debt to a debt buyer. But I'm not sure there would be any interest in a £21 debt, even if he could market a bundle of them.

persa

I wrote a really long reply which got accidentally deleted. In short, asking for a credit note is accountancy speak for "please cancel the transaction". (And he's meant to be a real accountant, right?)

His original book entry:

DR debtors (B/S) £21
CR turnover (P&L) £21

This created an invoice for £21. He now needs to reduce his turnover and debtor balances:

DR turnover (P&L) £21
CR debtors (B/S) £21

Best way to record the above credit to debtors is to produce a credit note in his systems. Seeing the credit note is for your own peace of mind, so you know he's actually reversed out the transaction.

UnderThe_Cosh

Hi again,

I sent an email to him in the form like persa gave and I have had a reply within 20mins below...



1. We are not a free information service.

2. We take every measure necessary in our advertisements, our website and otherwise to make it clear what we charge. You were aware of that, your email of 29 March was a clear request for assistance, which we provided and charged for.

3. Our invoice of 4 May is not negotiable and all we might negotiate is an extension of the 28 days in which it is required to be paid due to your worklessness.



This bloke isn't going to go away - he must be bored or something!

SeduLOUs

Sounds like time to block his email address then! Idiot.