New Client - The Book-keepers Forum (UK)

Pennant · Veteran Member

New Client

EPF_Solutions · Senior Member

Why are you starting a fresh set of accounts? Can't you carry on with the current system for the rest of the year?

I think what you do depends totally on the situation. What system they currently have, what state the accounts are in, and whether they will pay you to redo work they've already paid for.

Shamus · Forum Moderator & Expert

Personally options A or C but never B.

The issue is not so much the quality of the previous incumbants work but more how do you know the quality of their work unless you redo some of it.

With some clients where at scan review the year on year variances do not looked right I have actually redone the entire previous years books to ensure that I agreed with the bookkeepers work and the accountants conclusions, although more often I will take the trial balance related to last set of filed accounts as a starting point and work from there.

An added advantage of that is that more often than not I am also moving clients from Sage to VT so restarting the year gives me firm foundations on which to build.

Redoing the clients books helps you to both understand the clients business and spot any errors both in the previous incumbants work and also your own assumptions when you hit scenario's where yours and the previous bookkeepers data do not agree.

If you do adopt this approach then you cannot (officially) charge the client for it. My way around that is that I require a three month initial payment followed by monthly payment by standing order. The initial payment compensates me for the initial get to know the client by redoing their books work.

Sometimes of course there's a lot of work involved and it ends up as a loss leader but at least I got something up front rather than just that months money.

This is my approach which would not be for everyone but I hope my reasoning behind it makes some sense,

kind regards,

Shaun.

Pennant · Veteran Member

There isn't currently a bookkeeper or indeed a system, not presently vat registered, but soon to be. Want to get them off on the right foot with the best advice which they don't seem to be getting at the moment.

Shamus · Forum Moderator & Expert

So without a bookkeeper what state are the books actually in at the moment? How would you know without redoing them?

Sounds a good opportunity to find half a dozen things that they've done wrong (seldom difficult) and charging to do the books properly from the start of period.

Pennant · Veteran Member

Many Thanks Shamus. I also hope to get it all on to VT with a clear understanding of what's going on.

Pennant · Veteran Member

I'm only going by an initial telephone conversation at this point, will know more this afternoon following a meet. I have a feeling it's a carrier bag of paperwork awaiting me! Ps. whilst I have been doing the accounts for family businesses for years and am almost AAT qualified. This is a 'first client' scenario for me so just a little giddy. Thanks for you advice.

Don Tax · Expert

Good luck with your new client and the meeting today. Looks like new vista's opening up for you.

Best wishes,
Tim

Pennant · Veteran Member

Thanks Tim,

Wish I had more confidence in myself!!

EPF_Solutions · Senior Member

If there isn't currently a bookkeeper, and no system, I would start at the beginning too!

Pennant · Veteran Member

Thanks all, it was indeed a carrier bag of paperwork, 16 months worth!

Now crash course myself on VT I think. I've told him to get his accountant to bring him up to date and VAT registered, years of product development and marketing spending, no sales and not a penny vat reclaimed!!!

I shall be happy to take over from there on, I think I have him on the right track.

EPF_Solutions · Senior Member

I learned VT by redoing my own accounts. Once you get the hang of it, a lot of the posting is very fast as it remembers previous similar postings, but you just have to watch out not to get complacent as it sometimes makes logical assumptions that are wrong for a particular document. It's very easy to make corrections though, and that's great for sorting out bank accounts when doing incomplete records, as you can guess where to post things, and change them later when you have more information. I must admit I guessed some of my bank transfers as I couldn't be bothered to look them up, and when I found I'd guessed wrong, just corrected them to the right account!

You can also bung all 16 months in without worrying about year ends, as VT sorts that out for you, although I would try to sort it into months to try to keep some sort of order to it.