Bad Accountancy Practices - advice needed

[JackOfAllIT]

Hi all,

I'd appreciate your views on the conduct of my accountant please...

I've been using them for a couple of years now and they have made a catalog of errors. Not worth going into details about that. The are a small firm with about 7 or 8 employees based in Sheffield. I live in London.

I got offered a contract job in Germany. Quick call to the accountant to gain an understanding of how things will work in this scenario. Expected quick answer. The foot soldier accountant that answered the phone didn't know so he suggested I speak to one of their more qualified guys.

He also didn't know but he suggested that he can refer me onto a German accountant who can advise me how to be proceed. A couple of emails later my accountant in sheffield mentions that the work is billable at £xxx per hour and I tell him not to proceed and do any more work.

This was about a month ago.

I get a call from him this morning advising that the work he did carries a £700 bill.

From my perspective all he ever did was refer me to someone else. I wasn't aware that the work was billable and had I been aware I would have stopped it immediately.

I am going to get a new accountant. I haven't been happy with them for a long time anyway.

In your humble opinions, is this bad practice?

Is there an accountancy regulation ombudsman type service that I can report this to get a final decision on whether it should be paid or not?

[northernladuk]

Sounds more like you had the wrong tool for the job. Many accountants will struggle to understand the rules around contracting in another country.

Why are you still with them if there has been a catalog of errors as well. You are ultimately responsible for your company finances so sticking with someone that has a history of poor service and the looking to apportion blame when it finally goes tits up isn't you taking that responsibility very seriously.

[SueEllen]

First you complain in writing to the accountant's firm. Ask for a written response to your complaint and make sure you use the word complaint.

If the issue is still not resolved you complain in writing to the professional body the accountant belongs to.

You need to make it clear in both your complaints that:
1. You were not told the cost of the purposed extra service until after the accountant claimed you started using it,
2. The extra service was not available from that accountancy firm but an accountant in Germany.

Send all letters by recorded signed for and use letters in the first instance to be taken seriously.

Edited to say: It is bad practise. Anyone providing services should make it clear if an extra cost is chargeable before providing the service.

[Louisa@InTouch]

If they are regulated you can make a complaint!

For example to the ICEAW if they are a regulated firm. Most of the time you will need to make the complaint to the institute and this should be detailed within any engagement letters that you have.

On a side note, be careful of working in Germany as a contractor. They can be very strict when it comes to taxes and most of the time they want you to be PAYE. And if you haven't they might try to sting you later for a huge tax bill!

A firm with a monthly fee, rather than a general practice will reduce the risk next time of nasty unexpected bills

[SueEllen]

Just to add on this forum there are people who have contracted in different countries including Germany who will indicate the cheapest and legal ways to do it. They can also point you in the right direction and indicate when you have to pay.

[northernladuk]

We have a stickied thread on contracting in Germany here

http://forums.contractoruk.com/busin...m-p85-nhs.html

and a crap load of information in threads here...

https://www.google.co.uk/search?q=ge...counting-legal

[northernladuk]

First you complain in writing to the accountant's firm. Ask for a written response to your complaint and make sure you use the word complaint.

If the issue is still not resolved you complain in writing to the professional body the accountant belongs to.

You need to make it clear in both your complaints that:
1. You were not told the cost of the purposed extra service until after the accountant claimed you started using it,
2. The extra service was not available from that accountancy firm but an accountant in Germany.

Send all letters by recorded signed for and use letters in the first instance to be taken seriously.

Edited to say: It is bad practise. Anyone providing services should make it clear if an extra cost is chargeable before providing the service.

Is it practise or practice? - Future Perfect

[jmo21]

From my perspective all he ever did was refer me to someone else. I wasn't aware that the work was billable and had I been aware I would have stopped it immediately.

What work was actually done by your accountant or the German accountant?

It certainly seems like it's ripping the piss to me.

[SueEllen]

What work was actually done by your accountant or the German accountant?

He can argue that he did research on cross border tax liabilities.

However since he didn't warn the OP this service came with extra fees beforehand then he's got very little right to charge them.

On the other hand the OP should be more proactive and ask every professional he deals with, is there an extra charge for that if they don't mention it. (That reminds me I owe someone some money.)

[jmo21]

However since he didn't warn the OP this service came with extra fees beforehand then he's got very little right to charge them.

That's blindingly obvious!