Accountants - roles and responsibilities

[kanulondon]

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

[Crusoe101]

hmmmmm

[kanulondon]

hmmmmm

Yes exactly....

In other news. It's my Birthday today

All - Can anyone else share their experiences of a one man accountant gig?

[Gonzo]

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

Have you tried having a look at their website to see if such information might possibly be readily available in a handy format on there?

Just a suggestion.

[kanulondon]

[QUOTE=Gonzo;822899]Have you tried having a look at their website to see if such information might possibly be readily available in a handy format on there?

Just a suggestion.



Thanks Gonzo.

My question is actually misplaced. I guess it's more directed at individuals with a 'one man' accountant set up.

Just wondering whether I should set up a formal contract to be clear on roles and responsibilities.

KL

[Alan @ BroomeAffinity]

KL,

Forgive me, but it seems naive of you to be asking these questions now. Your relationship between you and your accountant is like any other and the expectations of both sides should be agreed at the outset as well as the fees. However, generally your accountant will (should):

• Manage your payroll
• Help you calculate dividends due
• Prepare your VAT returns
• Prepare your annual accounts
• Prepare your corporation tax return

It may be appropriate for them to do other services - such as book-keeping - but that would be in your agreement.

The fee can range from arounf £50 pcm to £150 pcm.

[kanulondon]

KL,

Forgive me, but it seems naive of you to be asking these questions now. Your relationship between you and your accountant is like any other and the expectations of both sides should be agreed at the outset as well as the fees. However, generally your accountant will (should):

• Manage your payroll
• Help you calculate dividends due
• Prepare your VAT returns
• Prepare your annual accounts
• Prepare your corporation tax return

It may be appropriate for them to do other services - such as book-keeping - but that would be in your agreement.

The fee can range from arounf £50 pcm to £150 pcm.

I agree, as a newbie I think I was expecting more guidance from my accountant. However it's possible that something has been "lost in translation".

Perhaps I need a more assertive accountant? Or I need to be more assertive myself...

I'll go back and ensure that we are both clear on what's expected

KL

[Little'Old Me]

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.

[ASB]

Because I will not take on just anyone - I don't bother with "contracts" or what are called "letters of Engagements" etc.

I thought LoE's were compulsory - or is it dependant upon your professional body?

[Little'Old Me]

I thought LoE's were compulsory - or is it dependant upon your professional body?

No they are not - they are just recommended. My professional body recommends them. I did use them years ago, when I first started out and I was not a member of a professional body then. But decided to save the planet by not using them and to be honest, I found they just confused clients because

- I would either spend too much time explaining what they were, and bored clients to death
- Or if I did not explain it - clients just didn't know what it all meant and got confused.


I just did a search on the ICEAW website and found a this: "helpsheet provides guidance for members who choose not to issue engagement letters" - you have to be a member to access it. But this statement confirms that their members can choose not to issue them.