Accountants - roles and responsibilities

[philip@wellwoodhoyle]

The ACCA (www.accaglobal.com) does make it compulsory for its practising members to use engagement letters. Para 3.18 of its rule book states:-

"Members must record in writing and send to their client a letter of engagement which sets out the terms under which they are agreeing to be engaged by their client before any work is undertaken or, if this is not possible, as soon as practicable after the engagement commences."

"The letter of engagement should set out in detail the actual services to be performed...."

ICAEW doesn't specifically require a letter of engagement but does say that a written record of the agreed scope of services is required.

[kanulondon]

Every Accountant works slightly differently.

Because I will not take on just anyone - I don't bother with "contracts" or what are called "letters of Engagements" etc. My clients trust me, and I trust them and if we don't - they aren't clients! Although I must admit, I am reconsidering re-introducing them - this is something I under currently review....

When I do take on a new client I spent time going through what services I can provide and the approx costs. Normally I will put it in writing, usually in the form of an e-mail, just to ensure they know what to expect. Clients then decide which ones they want me to do, and which they don't. This does change over the years, based on an individual clients needs. One of my "biggies" is I think it is important to keep in touch with clients and be proactive - clients that say they will do something and don't, and despite a number of reminders from me still don't.... - eventually I will suggest they go elsewhere.

You need to be happy with your new accountant. A lot of what you need, he should tell you about without you asking. He is the professional accountant, not you. If he takes you through everything and explains it all to you, and you leave the meeting happy - then you know you've made the right decision.

Thanks for the excellent advice. I am glad you understood where I was coming from

KL

[Crusoe101]

Get back to work Alex

[EchoSierra]

Hi,

I've been recommended an accountant by a friend / colleague. So far so good. He's a one man company and he's pretty relaxed about things.

He's rates are very competitive as well, which is a bonus.....

HOWEVER

As I am still a n00bie, I am unsure what exactly he's supposed to be doing for me. I think he's missed a trick as he hasn't made it particularly clear to me. Do we need a contract?

Obviously he'll be doing my main tax returns but apart from that I am not sure, obviously I'll need to have another sit down meeting with him. But before I go in I'd like to know what to expect?

So this is really a question to those who are with firms such as SJD, what do they do for you?

- All expenses? (I manage this via spreadsheet)
- Payroll? (I haven't paid myself yet!)
- VAT Returns? (First two have been 'nil', but recently joined FRS)
- Corp Tax returns? (A job for the accountant)

Apologies if this has come across a bit airy fairy, the truth is I am still a bit confused about it all.

Cheers

KL

I was in the same situation as you and expected a bit more guidance from my accountant when I joined up. It was all a bit vague but I got the general impression he would do

-my personal tax return
-payrolling
-expenses
-Annual Return
-Company accounts
-VAT returns
-Manage NIC/PAYE

He was clear that he did not do company set up services although he did register me for PAYE.

I was with an Umbrella company and picked up how to do a few things so I only use him for Company accounts when it comes around. I hope to do everything myself for the next financial year.