Warning about 1st Online accountants

[SeanT]

Direct copy and paste from email just received after enquiring about year end.

"As you only joined 1st Online in March 2017 you do have additional fees to pay before we can complete the annual accounts. The fee for this would be 4 X 58.98 = £235.92+VAT. The payment would need to be made before the accounts are prepared, we will send you a reminder nearer the time."

So that's a full month's fees for four months where they weren't my accountant / doing anything for me at all.

[BrilloPad]

Should have gone to QDOS....

[craigy1874]

You need to find out if you are actually paying a monthly fee or a payment on account of a final fee.

To me, you are being asked to top up the amount paid on account of a final fee.

[SeanT]

Well if anyone wants my business and wants to quote for taking the accounts over, now is very much the time. They've also said FY accounts will be prepared in May, which is a joke imho.

[simondolan]

Direct copy and paste from email just received after enquiring about year end.

"As you only joined 1st Online in March 2017 you do have additional fees to pay before we can complete the annual accounts. The fee for this would be 4 X 58.98 = £235.92+VAT. The payment would need to be made before the accounts are prepared, we will send you a reminder nearer the time."

So that's a full month's fees for four months where they weren't my accountant / doing anything for me at all.

The monthly fees are simply a convenient way of splitting annual fees across the year. The year end accounts and associated tax comps and returns take up the bulk of the time and therefore the cost. If you had just paid them one month in the year presumably you wouldn't expect the account etc to be done for you for no further charge?

[SeanT]

The monthly fees are simply a convenient way of splitting annual fees across the year. The year end accounts and associated tax comps and returns take up the bulk of the time and therefore the cost. If you had just paid them one month in the year presumably you wouldn't expect the account etc to be done for you for no further charge?

So then they'd get 11 months FreeAgent fees and other costs for free? I don't charge my clients for work I haven't done or for expenses I haven't incurred...

[SeanT]

By that statement, do you charge clients who sign up 1 months before year end (where the company has been dormant for 11 months) £1368 then Simon?

[SeanT]

Ah yes, but at least your Ts and Cs are clear about it... "Please note that we require a minimum of 12 month’s fees to complete your Company Year End Accounts."

[eek]

So then they'd get 11 months FreeAgent fees and other costs for free? I don't charge my clients for work I haven't done or for expenses I haven't incurred...

We don't have the full picture here. If we knew when your year end was we could see how much 1st online accountant are charging you to prepare your accounts. If the year end was 31st May you are being asked to pay 6 months of monthly fees for your annual accounts (a good deal)...
year end 30th June 7 months....

As Simon says all a monthly fee does is split the annual fee into smaller chunks....

[Patrick@Intouch]

That does seem a tad shortsighted.

We currently offer no switcher fees for contractors who become clients of ours and are switching from another accountants.

That would include preparation of accounts.