Does your accountant charge you for general advice?

**NotAllThere** · 5 September 2007, 13:53

Seems normal to me. I charge when my client asks my advice... outside of a pub that is.

**boxman** · 5 September 2007, 13:53

In my experience accountants are just like us and charge whenever they can!

You don't say how much you're paying a year for your accounts generally. Clearly if you're paying rock-bottom rates then it's not unreasonable to get a bill for any "extras".

Always best to regularly review your accounting requirements, discuss them with your accountant and don't be afraid to ask for a breakdown of any unexpected bill.

For micro-businesses like most contractors run with just a handful of invoices raised and paid per annum and a simple balance sheet and VAT calcs to do it's easy enough for most accountants to know what they're letting themselves in for when managing your affairs - so I'd try and agree a fixed cost to include any "reasonable" occasional queries. I've just done this with my bean counter and saved about a third of my current annual fees.

With my software clients I run an informal 10 minute rule which goes something like you can email (not phone) me about anything that you think I might be able to help with and if I can answer your question(s) within 10 minutes there's no bill. In practice I don't bill for this type of enquiry for clients who are reasonable (in my view) but for those that take the p*** I reply by saying "that's a good question. I'll need to look into that in more detail for a fixed charge (good for IR35) of £x". Clearly if you know the client well and he has a track record of giving you paid business (there's no other type is there?) then you might choose to take a view on this...

If in doubt always discuss with your client / accountant / other party in my book!

HTH

Rob

**Hiram King Of Tyre** · 5 September 2007, 14:05

Thanks guys,

The company was dormant for the first year and this will be my first year. They are certainly not cheap but my main concerns about this are:

1. They left it to mount up for 2 years before charging me (thereby letting me know that it was chargeable)
2. Most of my queries were general "how do I pay a dividend?", "how much should I pay myself?" type questions which a book keeper could have probably answered
3. Much of the advice has been conflicting or minimally answered which led to follow up questions

**Bluebird** · 5 September 2007, 14:08

in your agreement with the accountants was there a schedule of what advice would be charged at rate & frrequency ?

If there is no reference to this, I say you not willing to pay and change accountants.

**boxman** · 5 September 2007, 14:11

If your company was treated as dormant (i.e. at Companies House - which means no activity whatsoever - not even a few pence deposit interest at the bank) then the accounts requirements (from memory - please check) are very limited.

Sounds like a classic case of non-communication to me. You don't say what you *were* expecting to receive as a bill but judging by your comments it was less you've actually been invoiced!

Take a professional approach breaking down those items which you think have been billed correctly and those which you wish to query. That way you can focus your discussions with your accountant on the points at issue rather than a general winge about his fee levels. Per my previous post if the only issue is the recent £300 bill then don't be afraid to query this - or at the very least call him for a chat so that you can clarify his charging policy and then you can budget accordingly.

Rob

**boxman** · 5 September 2007, 14:17

You're going to be burning your bridges if you refuse to pay. Unless you are happy to walk away then you'd be better to discuss it first, see what reaction you get and then make a decision on the back of this IMHO. Each to their own though.

Give the guy a chance to respond before you make your mind up.

**Old Greg** · 5 September 2007, 14:25

I'm with SJD and I'm aware that there are cheaper firms around. They answer all my email/phone questions promptly and fully and don't charge additionally for it.

**NotAllThere** · 5 September 2007, 14:28

Originally posted by boxman View Post

You're going to be burning your bridges if you refuse to pay.

And the downside is?

**boxman** · 5 September 2007, 14:29

Just re-reading your post (Hiram) about the questions you've raised to your accountant then I'd agree that they're pretty basic and should be easy enough to answer.

You don't say whether your accountant is providing a "full" service but if he is then I'd agree charging separately for this is pushing it. You'll often get good (and free!) answers from this BB or by joining the PCG if you're not already a member.

Does your accountant charge you for general advice?