Accountancy asks for 1 year engagement

[anddrew]

Hello,

My friend recommended me an accountant company. This is a small company in City, just 4 people in their office. I visited them and really liked how they spoke with me and explained to me what services they are going to provide. But in agreement with client they have 1 year engagement.

Is this normal? (Before my accountants was a large company and I did not have any obligations to stay with them).

Thanks in advance...

[Clare@InTouch]

Some accountant's will insist on a year, especially if they are 'high street' accountants and only bill you at year end. Otherwise you could get free advice all year, then leave before paying a penny.

If you're paying for a monthly service then you're less likely to have a tie in period, just a notice period of say 30 days. Check for termination fees though, sometimes you'll find an extra fee if you want to leave.

[cojak]

Not unusual in the smaller accountancies. They don't want you to bugger off after doing the grunt work of your year-end, potentially leaving them out of pocket.

[BrilloPad]

This is a small company in City, just 4 people in their office.

Personally I would find somewhere out of town which will be more local to me and where their office costs(and hence charges to you) would be cheaper.

[anddrew]

Thanks!

This small agency does ask for monthly payment (£110+VAT), but they have 1 year angagement. So if I don't like their service, it means I will have to pay for the whole year if I want to leave.

(Local agency near my home would be a problem for me to pop in and talk, as I spend the whole day in City. Also I beleive - maybe I'm wrong, being in a small town accontants less deal with IT contractors and less experienced in it).

[Jeremiah@RHJAccountants]

The one year engagement letter is very common with most firms of accountants, i would make sure you read and understand it and check for any fees for leaving early.

[Greg@CapitalCity]

This small agency does ask for monthly payment (£110+VAT), but they have 1 year engagement.

Sounds like a long tie-in period. I think most contractor accounting firms where a monthly fee is paid will have a much shorter termination period, though as Craig points out, some do charge exit fees. I think explain your concerns to them surrounding the tie-in period and see if there is any room for negotiation - as its a smaller firm there may be some room for negotiation that can be quickly settled.