I took on a new client a couple of months ago - a franchise owner with five hairdressing salons, each managed with the hairdressers as self-employed. So basic running costs.
They didn't look after their bookkkeeping properly last year and admitted that they got into a mess - their account was supposed to be sorting everything up to March this year and they were going to start again with the bookkeeping from that date.
The owner wants to use Quickbooks which isn't a problem for me but I did request opening balances from the accountant so that I can actually do it properly. For example, a few weeks ago he asked me to pull together all the information for the start-up costs for each shop... I explained that as it was before the date I was doing the books from I didn't have that information and all the relevant paperwork is with him or the accountant. Obviously, without any opening balances or end of financial period statements, I cannot keep track of things for him properly and answer his questions!
I again asked him to chase up the accountant this morning as I am seeing him again next week and explained that I couldn't start with Quickbooks until I had that information- the reply from the accountant that he forwarded to me is less than helpful!
I've not got anywhere with the accounts as I can't do anything until the corporation dates come up, i've put the code in (agent authorisation code I presume) but nothing has come up.
The bookkeeper can still put everything in Quickbooks and I can build the links later.
I must admit that her reply has left me a little surprised - I've only been in practice just over a year and this is the first time I've had a situation like this but surely an accountant knows that I can't just put figures into an accounting package without having anything to start from when it is NOT a new business? Sure, I can work out bank opening balance from the date required and susbsequent transactions but assets, depreciation, capital, accruals and prepayments, etc - how am I meant to work with those without anything to start from?
Why can't she do the accounts for last year and get the figures ready for when the corporation tax dates come up and then submit them? I have no experience with corporation tax but I know what I'm doing with profit and loss and balance sheets, I don't see why the need to wait for those.
This client hasn't paid me for work done a while ago now and there are some overdue invoices that I've come across... does anyone else think that this may be more hassle than it's worth in the end? It has been a struggle to get clients and I'm loathe to cull any but working for free in a situation full of hassle isn't altogether helping me right now!
I think there's a distinction between the financial data, like the opening trial balance, debtors and creditors etc, and the day to day transactions. As long as I was being paid, I think I'd get on and post invoices and payments for the current year. You can gradually work out the opening balances on the sales and purchase ledgers from statements and payments that don't match current year invoices, and the opening bank balance. Then you'll be able to keep the sales and purchase ledgers and bank reconciliation up to date, and perform a useful service for the client. You'll also have much of what you need to produce some sort of P&L account and balance sheet, even though it's far from complete.
The client may then see you as a valuable asset, start to appreciate you, and push the accountant to get her finger out and co-operate, as she doesn't want to lose you. If it all goes wrong, you'll have done a good job and been paid for it, so it won't be you that's at fault.
I haven't been in this situation, but have certainly had to set up and look after the accounts for established clients without the previous years accounts being available for some time, and it did a very good job of it!!!!
One accountant calls me 'OCD' about getting things perfect and making sure everything is right which they think is a good thing, I guess in this case it's making me worry too much. I'll bite the bullet and get everything on to Quickbooks and when he asks questions I can't answer will show him why I can't.
Of course, it would be nice if he did actually start paying
Hi, explain to client that you need paying for work done. Ask them to change accountant if you feel the existing are being unreasonable. If you want to talk through how we can help further, call me on 07976 508359.
Thanks for your reply - one invoice is outstanding, I will be discussing this with my client when I see him next week. I do have a full credit control procedure in place.
I'm pretty sure that my client isn't going to change accountant just because they aren't being helpful to me at the moment - i've been with him for months his accountant for considerably longer! The only time I would suggest a client change accountant is if they could save a lot of money or the accountant isn't working to their professional standards and codes of conduct.
Thanks for your phone number but I don't think this is a situation you can assist with further.
