Changing accountant

danwednesday

Hi,

I'm 27 years old and am new to running a limited company, after having done all my own tax returns as a sole trader for the past 3 years.

I don't know much about how running a limited company works, so I got myself an accountant and a copy of Sage Instant accounts - which I'm steadily getting to grips with despite no help or pointers from my accountant at all.

To cut a long story short, I've been really disappointed by every aspect of my accountant's service. He rarely seems to be in the office (I've tried to contact him 4 times over the past 2 months, and he's been "away" every time. His secretary seems to do most of the work). He's unreliable: the only thing I've asked him to do so far is set up my PAYE - 3 months later I'm having to chase his secretary because it hasn't been done; and he's totally un-approachable. I went to see him this morning to ask how I should be paying myself as director of the company, since my PAYE hasn't been set up or explained at all, and he looked disgusted as if I should have been born with this knowledge - he begrudgingly set it up so it can be done online and said he'd "take care of it" - which I'm not particularly confident about now.

I've signed a letter of engagement with this guy, and he's due to file my first tax return next year. No money has exchanged hands so far.

My question is, am I easily able to change accountant? Will I encur any fees or problems from the Inland Revenue in doing so? Since we agreed that he'd be doing my first tax return, am I now tied to him until that is done - even though it's not due until July next year (my year end)? I just need to find someone who is approachable, who can guide me through my first year of trading without making me feel like I'm an idiot trying to waste their time. I'm making money and am very quick to pick up things like this so I should be a good customer I'd have thought, but I do need some help in getting my head around the runnings of a limited company, because unlike my accountant I've not been doing it for 30 years. After all, this is why I am paying for his services.

Any knowledge/experiences greatly appreciated. Thanks folks...

mrsS_2

Hi-there is absolutely nothing stopping you changing accountants.

The Inland Revenue dont care as long as all necessary forms are submitted on time- they rarely worry who is sending them in, as long as they are correct.

Hopefully you are going to be in business a long time and your accountant should be a valuable part of that business- when it comes to budgeting, business planning and tax saving.

It doesnt sound as if you have any confidence in him at all- and this is only going to get worse- I can see the situation arising where you will be ringing him to see if your accounts have been filed with the revenue!

It is not worth it- there are literally hundeds of properly qualified hard working reliable people out there who will be only too happy to call you back.

It is best to use a qualified accountant- the Institute of Chartered Accountants can give you a list in your local area- or contact organisations such as Business Link for some recommendations.

please be aware that you dont always get the best service with the cheapest accountant- they cant afford to employ as many staff or always have the up to date technology.

finally- you may well end up with a bill to pay before you transfer- afterall you have had some meetings and some work done by this firm-this will need to be paid in order for him to confirm that there are no reasons why you cannot transfer.


good luck

Pennywise

Get some recommendations from friends and family, book an appointment with 2/3 - most do a free initial consultation, so pick those so it doesn't cost you anything. Go with the one that you get on best with.

I'd say that personal recommendation from a similar business is far better than whether or not they are qualified, how big they are, their pricing etc. Accountants come in all shapes and sizes and like anything else, you just have to find one that suits you.

inmypocketnottheirs

Dan whereabouts are you? I am in Cheshire and my accountant is in Chorley, Lancs. If it is local, I can thoroughly recommend him. Let me know (by PM if you prefer).

Treading_Water

Hi Dan
There should be no problem with changing your accountant as long as they are reliable. It would be better to do it now, before they get too tied up in your business. I would say that unless you are planning on building a huge company you will be better off with a small personal accountant that specialises in small business affairs, rather than a big company with lots of staff who won't really understand your business needs at all.

danwednesday

Thanks for all your help folks. I'll have a look around for another accountant - although it was difficult the first time I looked as I don't have family around and none of my friends use an accountant. I guess I've got some experience now though so should make a better job of it this time! (By the way 'inmypocketnottheirs', I'm based in Bristol, so can't take you up on your kind recommendation, thanks anyhow).

I guess I'm slightly worried that even though we've only had 3 very brief meetings (< 10 mins each) I'll get whacked with a huge bill if I tell my current guy I'm going elsewhere. I'll cross that bridge if/when I come to it though.

Thanks again everyone.

olly300

danwednesday wrote: »

T

I guess I'm slightly worried that even though we've only had 3 very brief meetings (< 10 mins each) I'll get whacked with a huge bill if I tell my current guy I'm going elsewhere. I'll cross that bridge if/when I come to it though.

Why don't you ask him now how much your meetings with him cost and asked to be invoiced for them in writing at monthly intervals?

All accountants are in professional bodies so if he then doesn't respond to your request, you do go elsewhere and he gives you a huge bill then you can dispute the bill and complain to them.

Pennywise

olly300 wrote: »

All accountants are in professional bodies so if he then doesn't respond to your request, you do go elsewhere and he gives you a huge bill then you can dispute the bill and complain to them.

I'm afraid that is completely incorrect.

Anyone can call themselves an accountant - they don't need to be qualified nor experienced, nor do they need to undertake ongoing training nor need to have professional indemnity insurance. There is currently no regulation of the word "accountant".

Many accountants are qualified and members of professional bodies - look for the word "chartered" which does signifiy a regulatory professional body - and those are regulated by the chartered accountancy bodies can be complained about to their body.

If they aren't in a professional body, your only claim is to local Trading Standards or the courts.

Cook_County

The good news is that from 15 December anyone at all providing tax advice in the UK will be regulated.

The bad news is that no checks will be carried out to ensure that only those fit to practice are registered so there will still be thousands of unregistered unqualified cowboys (or cowgirls!).

Thus to protect yourself you need to ensure you ask the qualifications of your chosen adviser.

danrees

As an accountant myself, I would be disgusted with the level of service your accountant has provided. My firm as a policy that where possible you should call clients back within four hours of receiving a voicemail or other message.

It is worth checking the engagement letter to establish what right your accountant has to charge you for costs he has already incurred. However, if your accountant has provided the service you have described then I cannot imagine he or she would take you to court for non-payment of invoices.

danwednesday

Thanks for the advice everyone - that assures me I'm doing the right thing in seeking an alternative accountant.