Limited companies and Chartered Accountants

smellybumsmum

Hi!

I have been talking to a few potential clients lately and two of them have been told that because they are Limited Companies they can only use a Chartered Accountant to do their Annual Accounts and Tax Returns (turnover about £2m a year or less)

When I asked where they got this information, they said from their Chartered Acountant! Funny that!

Anyone else come across this? Is it just that Chartered Accountants are threatened by us lower beings?

Ruth

burg

I think clients do sometimes get told anything that may make them stay with their current accountant.

If faced with this situation I would just simply explain the limitations of what you can do based on your licence. Mainly not to carry out audits (explain the company sizes) and to undertake insolvency work.

You can demonstrate that you are more than competent (if you indeed are) to undertake the work you have quoted for and that you follow professional standards and would not undertake work for which you are not capable.

Most of the time I would imagine clients would be aware and be taking the information given by their previous accountant with a pinch of salt providing you can come up with an explanation.

I wouldn't try to lecture them or put the other accountant down just simply point out the truth and let them make their own mind up.

smellybumsmum

Thanks for the reply, I have just explained in a nice way that it isn't the case and due to there size I am more than capable of acting for them. I have also explained that I have an agreement with a chartered accountant should they need any further work of which i am not capable of.

I think they were a bit shocked at what they had originally been told and not sure if they believed me or not but hopefully they will check it out for themselves and I'l have new clients

Monsoon

burg wrote: »

I think clients do sometimes get told anything that may make them stay with their current accountant.

If faced with this situation I would just simply explain the limitations of what you can do based on your licence. Mainly not to carry out audits (explain the company sizes) and to undertake insolvency work.

You can demonstrate that you are more than competent (if you indeed are) to undertake the work you have quoted for and that you follow professional standards and would not undertake work for which you are not capable.

Most of the time I would imagine clients would be aware and be taking the information given by their previous accountant with a pinch of salt providing you can come up with an explanation.

I wouldn't try to lecture them or put the other accountant down just simply point out the truth and let them make their own mind up.

Absolutely agree with this one.
Smellybumsmum sounds like you handled this one spot on. Hope you get the client.