One of my clients has just given me notice, which is fair enough - but actually the first time for me!
I'm awaiting contact from their new accountants, but the bit that has puzzled me is that the client, when they phoned me, said that the accountant will want a copy of my sage back up. I don't see any reason why I should do this, as the client never paid for software use, so surely that belongs to me? I'm happy to send accounts and tax comps as normal, and will obviously return the clients files to them, but really wouldn't expect to send anything else.
What is your reason for not giving the clients accountant the backup. I assume you could charge the client for the time to do this, by why be awkward about it. If the client is paid up to date, and pays for bookkeeping surely you wouldn't want them to need to pay for the same bookkeeping again.
The client is not being given access to your Sage which is yours but rather their data which they paid for you to prepare for them.
I can see the argument from your side of the fence but it seems somewhat petty.
Also, is it not important how the accountant views you. If you make their life more difficult then you ar not going to win any brownie points with them.
You've lost a client but don't make that make you lose an opportunity.
Why not take this as an opportunity to speak with the accountant, explain any issues with the client including any unusual transactions and see whether you can win any work from them to replace the lost client.
With my clients I even ensure that they always have backup copies of their data and if they want to leave they are free to do so.
What they do not have is access to their permanent file which contains things such as notes on the client, MLR records, original signed engagement letter, etc.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank you - think I probably knew that maybe I was being a bit petty!
It's a slightly complex situation, as the client is related to my husband and as such has had a huge reduction on fees - as in a way this was the only way for their business to get going as had they had to pay the true cost of the bookkeeping from the start, the business would have been unviable. They are a pain in the proverbial client, and are actually leaving me as my husband told them to find someone else, as he felt it was detrimental to the family relationship for me to do their books, coupled with the fact that I refused to do the books for their other business, as there were ML issues that I wasn't happy about.
Unfortunately, my husband didn't bother to tell me what he told them - so guess I was a bit surprised, although also strangely relieved.
@ Shaun - the accountant is actually about 100 miles from me, so no point in building any relationship. I also assume it is not my place to mention the concerns I had re ML?
Thank you for replying - and for giving me the kick up the backside (Kris & Shaun) that I think I propably needed!
... has had a huge reduction on fees - as in a way this was the only way for their business to get going as had they had to pay the true cost of the bookkeeping from the start, the business would have been unviable. They are a pain in the proverbial client...
I think this part is really interesting. I hear it all the time from (mainly newer) bookkeepers I speak to. It seems that people who are price sensitive tend to be the problem clients later down the line. There is a warning in there somewhere...
Just vaguely in my defense - the only reason I gave them reduced fees was because they're relatives! The place they are moving to is charging them just over 3 times as much as I was, so maybe won't see them as quite so much of a pain.
I find that relatives are always a pain whether they are paying you or not.
I gave one relative a really low fee to get them started (I even emphasised that such was first year only) and then they go and "Do me a favour" to repay my kindness by telling all of their mates the low fee that they pay through their accountant and giving out my card on that basis.
Sometimes relatives just need slapping around a bit.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Shaun - my Dad (a retired FCA) warned me never to work with relatives! He's managed to refrain from saying I told you so more than once a month for the last 18 months!!
I was gutted when I lost my first client. I have lost a couple since and generally the reason has been fees i.e. being undercut.
I agree regarding the Sage data - it is theirs. You could just provide the nominal ledger reports etc. but to be honest it is usually just common courtesy to provide the sage backup. Maybe the lesson is to charge for use of software as part of the service. Most of my clients are on KashFlow so they buy the licence from me and if they leave they can either keep the licence or transfer it direct to KashFlow (at the higher rate!). I have not had a problem with this so far.
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