Warning about 1st Online accountants

[ContrataxLtd]

I think a bit of perspective is needed here, was an additional fee mentioned at all when you signed up or even mentioned in the terms and conditions? If it was then it seems reasonable that they charge it you as presumably you agreed to it. If nothing was mentioned then I can see why you wouldn't want to pay anything further for the accounts to be completed.

We normally take a pragmatic approach when taking on clients from other accountants, especially where Freeagent is being used, and normally there won't be an additional fee for completing the first set of accounts provided you join us in the year in question. I would imagine this is the approach that many of the other regular posters on here take too?

Martin
Contratax Ltd

[Darren at Fox-Bartfield]

Accounts

That does seem a tad shortsighted.

We currently offer no switcher fees for contractors who become clients of ours and are switching from another accountants.

That would include preparation of accounts.

Ditto

[SeanT]

I think a bit of perspective is needed here, was an additional fee mentioned at all when you signed up or even mentioned in the terms and conditions? If it was then it seems reasonable that they charge it you as presumably you agreed to it. If nothing was mentioned then I can see why you wouldn't want to pay anything further for the accounts to be completed.

It's alluded to in the Ts and Cs. They aren't really very explicit about it. It's certainly not highlighted at any time when you sign up or in initial communication / sales bumpf. But then I guess it wouldn't be would it. And I'm a business, not a consumer now...

[Maslins]

Devil's advocate for In Touch/Contratax/Dynamo:
- contractor wants to sign up with you month before year end.
- year end passes, they chase you to do year end accounts promptly, which you do.
- they leave, having maybe paid 2 months worth of fees.
Whilst I appreciate you may not love the situation, you're saying you'd accept that with good grace as just the way things go?

FWIW we'd typically have a halfway house, defo wouldn't charge full fees (as SeanT suggests we wouldn't have been paying for the FreeAgent account, or giving any advice during that time), but would want some additional one off charge where a client joins near the end of the year. No set rule on this, but circa 50% for the "missing months".

[ContrataxLtd]

It's alluded to in the Ts and Cs. They aren't really very explicit about it. It's certainly not highlighted at any time when you sign up or in initial communication / sales bumpf. But then I guess it wouldn't be would it. And I'm a business, not a consumer now...

Have to disagree with you here SeanT, I think it should be made explicitly clear if catch up fees are going to be applied even if they are alluded to in the T&C's. I wouldn't like to be told additional fees apply 6 months down the line for work I was having done so don't see why that should be a default position for catch up fees either.

Devil's advocate for In Touch/Contratax/Dynamo:
- contractor wants to sign up with you month before year end.
- year end passes, they chase you to do year end accounts promptly, which you do.
- they leave, having maybe paid 2 months worth of fees.
Whilst I appreciate you may not love the situation, you're saying you'd accept that with good grace as just the way things go?

FWIW we'd typically have a halfway house, defo wouldn't charge full fees (as SeanT suggests we wouldn't have been paying for the FreeAgent account, or giving any advice during that time), but would want some additional one off charge where a client joins near the end of the year. No set rule on this, but circa 50% for the "missing months".

In your example it would involve a discussion with the client before they joined up but it would be likely that no catch up fees would apply (i'd like to review Freeagent first ideally) and if they left then i'd take it with a pinch of salt and forget about it. Doesn't happen often though and i'd normally advise that the previous accountant did the accounts and just give an extra month free on our fees to compensate, assuming there wasn't a reason that they had to move so quickly.

Martin
Contratax Ltd

[eek]

Devil's advocate for In Touch/Contratax/Dynamo:
- contractor wants to sign up with you month before year end.
- year end passes, they chase you to do year end accounts promptly, which you do.
- they leave, having maybe paid 2 months worth of fees.
Whilst I appreciate you may not love the situation, you're saying you'd accept that with good grace as just the way things go?

FWIW we'd typically have a halfway house, defo wouldn't charge full fees (as SeanT suggests we wouldn't have been paying for the FreeAgent account, or giving any advice during that time), but would want some additional one off charge where a client joins near the end of the year. No set rule on this, but circa 50% for the "missing months".

Which is what I believe is happening here...

[SeanT]

Which is what I believe is happening here...

No, it's 100%. Well, it's four quid less than four full months fees to cover a period of just over four months. Woop.

Started business 6th October, actually started trading 27th Feb, year end end of October, started paying £59.98+VAT a month on 4th March, request is for 4 x 58.98 =235.92+VAT.

[Maslins]

In your example it would involve a discussion with the client before they joined up but it would be likely that no catch up fees would apply (i'd like to review Freeagent first ideally) and if they left then i'd take it with a pinch of salt and forget about it. Doesn't happen often though and i'd normally advise that the previous accountant did the accounts and just give an extra month free on our fees to compensate, assuming there wasn't a reason that they had to move so quickly.

Fair enough. We'd also discuss beforehand, and make any extra fee crystal clear before they signed up...so no nasty surprises, but we almost certainly would charge an extra fee.

[ContrataxLtd]

Fair enough. We'd also discuss beforehand, and make any extra fee crystal clear before they signed up...so no nasty surprises, but we almost certainly would charge an extra fee.

Key bit there for me, if anything is going to be charged extra it has to be made crystal clear before signing up.

[SeanT]

I've responded in line with the opinions above, and suggested £29.98 for four months would be an appropriate top up charge.