Reply to: Changing Accountants and charges levied for taking on your accounts

[d000hg]

If a previous accountant does 6 months work that consists of reviewing data but not actually preparing the tax return, accounts, payroll year end etc then the work for a new accountant isn't that much less - this is why they charge the catch up fee. It's not that the new accountant's workload is halved just because you've had a different accountant for 6 months, so the wall analogy is misleading. It's more like rebuilding nigh on from scratch.

i.e. you're not paying monthly for your accountancy services, but paying in monthly installments for your yearly service.

[d000hg]

Read the chain, it was in relation to him waiting till year end.

So what? I know many accountants work on the basis of charging for a whole year, and you know it, and many/most contractors do. But that's acquired knowledge, which is the opposite of common sense.

[Clare@InTouch]

If a previous accountant does 6 months work that consists of reviewing data but not actually preparing the tax return, accounts, payroll year end etc then the work for a new accountant isn't that much less - this is why they charge the catch up fee. It's not that the new accountant's workload is halved just because you've had a different accountant for 6 months, so the wall analogy is misleading. It's more like rebuilding nigh on from scratch.

Many firms will waive any catchup fee as a gesture of goodwill, provided you join within a reasonable time before your year end. You just need to check before you sign up.

[JamJarST]

You say it is a bad analogy and then further build on that analogy.. see what I did there.. build on it.. oh well...

Lol yeah, I meant the analogy of crap work being fixed was bad.

[northernladuk]

Bad analogy though as he didn't change accountants cos they did a bad job, they did the 5 months work, he expected the new accountant to pick up where they left off. So to use your analogy lets say the builder built a good wall but only 3 feet tall and you paid another builder to raise it to 5 feet, you would pay for the original work again???

You say it is a bad analogy and then further build on that analogy.. see what I did there.. build on it.. oh well...

I seem to remember when I changed to SJD there was some extra cost when I changed mid year but this was due to my last accountant just diappearing so expected them to have to do some extra work to catch up where he had left of as it was a bit of a mess. This was explained to me and made sense bearing in mind my situation so surprised this wasn't mentioned to the OP.

[JamJarST]

Well SJD charge £110 - so I guess he is changing to them? Do SJD charge catch up fees?

Personally I don't have an issue with so called catch up fees, if I employed a builder to build a brick wall and I sacked him before it was finished because it was a crap job, surely I wouldn't expect my new builder to charge less because I had already paid my old builder. The new builder still has to start again and re-build the wall!

Bad analogy though as he didn't change accountants cos they did a bad job, they did the 5 months work, he expected the new accountant to pick up where they left off. So to use your analogy lets say the builder built a good wall but only 3 feet tall and you paid another builder to raise it to 5 feet, you would pay for the original work again???

[psychocandy]

I can the OPs point though. New accountant should have made it clear there would be catch-up fees I think.

I switched to NW about 3 months into my first year and they didnt charge me any extra though which was good of them.

[Waldorf]

Thats weird. SJD, Cloud 9 Accountancy, and K&B Accountancy all use the exact same wording as you quoted above. I wonder who copied who </sarcastic observation >

Well SJD charge £110 - so I guess he is changing to them? Do SJD charge catch up fees?

Personally I don't have an issue with so called catch up fees, if I employed a builder to build a brick wall and I sacked him before it was finished because it was a crap job, surely I wouldn't expect my new builder to charge less because I had already paid my old builder. The new builder still has to start again and re-build the wall!

[Greg@CapitalCity]

Thats weird. SJD, Cloud 9 Accountancy, and K&B Accountancy all use the exact same wording as you quoted above. I wonder who copied who </sarcastic observation >

[Rivendell]

Read the chain, it was in relation to him waiting till year end.

and your point is oh great one?

[northernladuk]

Which part of being charged £hundreds when they don't mention it on their website is common sense to you exactly? Any decent accountant would at least warn the new customer rather than start the switchover and issue an impersonal invoice. That's just bad service.

Read the chain, it was in relation to him waiting till year end.

[Rivendell]

Which part of being charged £hundreds when they don't mention it on their website is common sense to you exactly? Any decent accountant would at least warn the new customer rather than start the switchover and issue an impersonal invoice. That's just bad service.

Thank you d000hg, I guess some people just like to make you feel small.

I quote directly from their website:-

Switching Accountants is simple
Alternatively, if you are dissatisfied with the level of service or fee from your existing accountant, we would be more than happy to take over your affairs.

Transferring accountants is a simple matter involving just one letter from you; we take care of the rest. When you join us we carry out a detailed review of your current tax position to ensure that all possible areas of tax mitigation have been utilised, and liaise fully with your previous advisers to ensure a smooth transition.......

Please complete the short form below to become a client of ******** and never worry about your tax or accountancy affairs again.

Our complete accountancy package includes: completion of accounts, all company returns, payroll bureau, dividends, corporation tax computations, personal taxation, free bookkeeping software and unlimited access to your accountant, we do all this for a fixed monthly fee of just £110 plus VAT, which is of course fully tax deductible and is also one of the lowest prices in the market

I think it was reasonable to assume I would be paying them .......£110 a month! No mention of catch up fees.

[d000hg]

Common sense is a better thing.

Which part of being charged £hundreds when they don't mention it on their website is common sense to you exactly? Any decent accountant would at least warn the new customer rather than start the switchover and issue an impersonal invoice. That's just bad service.

[Rivendell]

Common sense is a better thing.

yeah thanks for nothing smart arse

[northernladuk]

yes, I guess it would, but hindsight is a wonderful thing no? This is my first year trading so I'm finding out lots of these things the hard way. Looks like I'm £600 down then.

Common sense is a better thing.