Are accountancy fees paid in advance or in arrears?

[sdonk]

I have just changed accountant and the previous one have asked me to pay the August fee because the fee is paid in arrears, so this will cover July's services.

I read the contract and it only says that the fee is collected on the 15th of every month, without specifying what that covers.

They also said that I have to pay back the money I got as cash back when I signed up because that was related to me being a client (the offer stated on "sign up" nothing else).

What are your thoughts?

Thanks

[northernladuk]

You should have the first payment documented in your company accounts. Why not look back and see when you paid the first one which should let you work back to your current situation.

You could of course ring them and ask them what their payment structure is. I can't believe for one minute they would lie to you just to extract a couple of weeks payment.

[sdonk]

You should have the first payment documented in your company accounts. Why not look back and see when you paid the first one which should let you work back to your current situation.

Good point. I will have a look at that and invoices.

You could of course ring them and ask them what their payment structure is. I can't believe for one minute they would lie to you just to extract a couple of weeks payment.

What about the cash back money that they claim was related to me being a client then?

[northernladuk]

Im sure they have you bang to rights there I am afraid. Most contracts with accountants are on a yearly basis with the payments spread over the year and NOT on a pay monthly basis. If you don't see the year out I suspect your cashback will be invalid.

The details for all this should be in your engagement document and will set out the terms which is where I'll bet you find the details about the year long agreement.

Read it carefully and you should find your answer. Again you could try speaking to them and they will explain all this. You shouldn't have to worry they are screwing you over as they aren't going to lie to you over issues like this. If you don't believe what they say ask them to re-send the engagement agreement and point it out.