Payment Terms for Accountant

**v8gaz** · 17 August 2011, 06:38

If you are struggling to pay your accountant on the rate you're working for, perhaps you haven't quite got contracting?

**Sockpuppet** · 17 August 2011, 07:04

I pay mine yearly. Then again I only see my accountant once a year.

**JamJarST** · 17 August 2011, 07:22

Originally posted by dagenheis View Post

Hi,
I am just wondering about the payment terms you folks have with a start-up accountant (one man show) rather than big accountancy service companies.

I know some may be paying on per month basis and some are paying quarterly.

Is it reasonable to pay quarterly for first two quarters and then pay the rest at the end when accounts and returns have been prepared and signed-off.

To be prudent, I am inclined to take this approach with someone new (with no past relationship, just a reference) rather than paying every quarter and have very little balance when the main work needs to be done.

To be fair, i think, the year end works (accounts, returns, personal returns) amounts to 2/3 of the work as compared to monthly payroll and FRS VAT returns.

Any thoughts?

Ta,

Why is that prudent? Are you expecting him to make a mistake? If you are why are you using him?

**Jeremiah@RHJAccountants** · 17 August 2011, 08:24

Originally posted by dagenheis View Post

Hi,
I am just wondering about the payment terms you folks have with a start-up accountant (one man show) rather than big accountancy service companies.

I know some may be paying on per month basis and some are paying quarterly.

Is it reasonable to pay quarterly for first two quarters and then pay the rest at the end when accounts and returns have been prepared and signed-off.

To be prudent, I am inclined to take this approach with someone new (with no past relationship, just a reference) rather than paying every quarter and have very little balance when the main work needs to be done.

To be fair, i think, the year end works (accounts, returns, personal returns) amounts to 2/3 of the work as compared to monthly payroll and FRS VAT returns.

Any thoughts?

Ta,

You should pay what is most comfortable for you, montnly, quarterly or at year end. Although if you do think your account may make a mistake why are you using him.

**dagenheis** · 17 August 2011, 12:58

Making an error is not the main reason and the paying difficulties not at all. I would rather pay people early to ease my annual liabilities. It's just to make sure that the year-end accounts and returns are completed in a timely manner rather than waiting for the last week of submission. That's why I was thinking about the remaining half of the fee when the yearly accounts are signed off for submission.

May be this is also about the thinking that we need to give due attention to the client if there is some revenue attached to it. I don't know if you guys have such experiences. Don't want to keep calling/emailing. I may be wrong but this happens when you are dealing with someone for the first time.

On a related point, how long do you normally wait after the year-end so the accounts and returns be finalized. I understand there is a ample time (months) for companies house & HRMC. What's the best practice?

**SueEllen** · 17 August 2011, 13:17

Originally posted by dagenheis View Post

Making an error is not the main reason and the paying difficulties not at all. I would rather pay people early to ease my annual liabilities. It's just to make sure that the year-end accounts and returns are completed in a timely manner rather than waiting for the last week of submission. That's why I was thinking about the remaining half of the fee when the yearly accounts are signed off for submission.

Don't you have agreed terms of service with the accountant in writing where they state when they will do the yearly accounts i.e. 3 months after year end?

**dagenheis** · 17 August 2011, 13:40

Nope we don't have it in writing...

**SueEllen** · 17 August 2011, 13:51

Originally posted by dagenheis View Post

Nope we don't have it in writing...

Ahh.

Ask him if you can have a contract.

Alternatively ask him via email so you get it in writing when he will do your company year accounts and when he wants all paperwork from you, so he can submit them at least 6 months early.

If he's scared of putting anything in writing or doesn't reply with the answers you want get another accountant.

**Jeremiah@RHJAccountants** · 17 August 2011, 14:27

Originally posted by dagenheis View Post

Making an error is not the main reason and the paying difficulties not at all. I would rather pay people early to ease my annual liabilities. It's just to make sure that the year-end accounts and returns are completed in a timely manner rather than waiting for the last week of submission. That's why I was thinking about the remaining half of the fee when the yearly accounts are signed off for submission.

May be this is also about the thinking that we need to give due attention to the client if there is some revenue attached to it. I don't know if you guys have such experiences. Don't want to keep calling/emailing. I may be wrong but this happens when you are dealing with someone for the first time.

On a related point, how long do you normally wait after the year-end so the accounts and returns be finalized. I understand there is a ample time (months) for companies house & HRMC. What's the best practice?

All accountants should give due care to clients.

The best practice is to get your books and records to you accountant normanlly 2 - 3 months after the year end if you can, they should be able to do them in a relativley short turn around no longer than 4 - 6 weeks as i am sure they will have lists of jobs to do on a date order basis.

So all in all the process shuld take 3 - 4 months leaving you with ample time to meet the filling deadlines for Compaines house and HMRC.

Also you should have an agreement/ engagement letter with your accountant which states what they will do for you. If you dont have this i would consider making a move.

Payment Terms for Accountant