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Old accountant chasing invoices

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    Old accountant chasing invoices

    Hi,

    I was with an accountant for a couple of years for my ltd co and decided to move to a new accountant due to fees and the hope of a better service.

    The old accountant wasn't happy when they found out I wanted to leave. They have since sent me an invoice for what they say was unpaid time on their ledger. The invoice was for £700 to cover "general enquiries".

    They wouldn't release any information or do any handover to the new accountant. Not that it was much of a problem as I had copies of all the work they did for me anyway.

    I've never had a contract with the old accountant and just paid for services as they have completed them. Nor has there been any termination agreement.

    Is there some law that states a previous accountant must give clearance when a client moves? I've seen advice on other forums that outstanding bills are not a reason not to provide clearance.

    I've asked for a breakdown of the charges in the "general enquiries" invoice but none has been forthcoming.

    They tried chasing recently saying the outstanding fees were over £1k - I've not even got invoices totalling this amount and have asked which invoices they think are outstanding but no reply.

    Do you reckon that they have a leg to stand on if they go the small claims court? Has anyone else had difficulties moving accountant in the past?

    Thanks

    #2
    "Time on ledger" and "general enquiries" make it look to me as if they were charging on a time basis not fixed fee. There is nothing wrong with that, but it is increasingly uncommon.

    Anyway, first check your engagement letter with them. What does that say about fee basis? If there is no engagement letter,is there anything else to document the fee basis?

    Going to small claims on the basis of "general enquiries" would be foolhardy. A court would want them to specify the work done and basis of contract if the claim was defended, so in that basis I would say that even if they did launch a small claim, you would be able to flush out the detail and either reach agreement or have a robust defence.

    In terms of providing handover, some accoutancy bodies dictate that handover cannot be delayed for fees and no charge can be rendered, that's the ICAEWs stance. ACCA on the other hand requires members to make a minimum level of handover available without delay, but says that more substantial handover can be charged for or held back pending fee settlements.

    My experience is the accountancy bodies don't like getting involved in pure fee disputes, but something like delayed handover or failure to respond to correspondence they will take up. Presupposes your ex accountant is a member of one of the major accounting bodies.

    Given the absence of a contract, the rather old school approach to fees, and the fact that demands and invoices don't match, I surmise some admin problems within the accountantcy firm.

    I would probably right back, and say factually
    - the invoices and statement don't match
    - you won't settle the invoice without a clear breakdown of work done, time and hourly rate
    - in the absence of a contract you will not be responsible for any work not expressly authorised

    HTH

    Comment


      #3
      Thanks, that's really helpful. I've never had a schedule of charges for them, neither has there been any form of engagement letter. After leaving the new accountant noticed that they'd put the wrong address on the reg office when they changed it over.

      I've already asked them for a breakdown of the charges which they acknowledged and agreed to send it over but nothing arrived.

      Can't understand why they'd want to shoot themselves in the foot for future business or recommendations.

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