I have been asked by a client to complete their first year's limited company accounts based on their Sage back-up.
What they failed to tell me ws this was their second limited company in the ost few years and other one is in the process of being dissolved by HMRC.
What is worrying me is that all of the assets are in the dissolved company but they have also been used to date in the new company.
The accounts will look really strange as they will show no assets but a large income from commercial cleaning without any Vans or assets to undertake the work.
I am due to meet with the client to discuss this tomorrow has anybody got any pointers, or should I just walk away now. They are due to pay me on account but I can already see this becoming a bad debt, as a few other clients who saw us meet originally, in the local pub, advised me not to touch him with a bargepole.
I wouldn't necessarily go one what others say, but I would go with my gut feeling. Many times I have ignored this and ended up in bother. It seems to me that your instincts are saying run away.
You could always charge them double what you were originally and ask for the money upfront and if the money doesn't come through don't do the work! Then when they ring you up and asked have you finished you can say I haven't started yet as you haven't paid! You will soon find out if they are wasting your time and just wanted a freebie, which is what it sounds like to me.
You will always get clients that will dodge paying you and their creditors and like Kris says the gut instinct maybe to just say no.
Bad clients can be good for the cash-flow if they're willing to pay greater fees up front.
wouldn't do any harm writing to the previous accountant. It would be further alarm bells if he objects on the grounds that this is a new, separate entity, but you might be able to so in regard to personal taxation.
