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Charge for work appropriate?

burgburg Experienced MentorGloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
Hi all.

I'm sure I'm right on my dealing with this scenario but wanted some clarification.

Background

Small limited company client income £6k profit £1k max 150 transactions all via bank account.
Director has rental portfolio but we do not act.
Fee charged £350 so fair in my opinion.

We prepared Oct 09 accounts in Jul 10 when client approached us.

Then prepared management accounts for mortgage purposes in Oct which dealt with 90% of the accounts work for final year end accounts. Would just need a few bank transactions from end of Oct plus some adjusting journals for use of home, dep'n etc.

Been chasing client ever since and has now informed us he wants to do them himself.

I am happy for him to leave as he has been difficult getting info from.

I have raised an invoice for £150 in respect of work carried out on the basis that at c45% of last years fee it is equivalent to work carried out (i.e. final accounts work and tax work plus a meeting / conversation with the client is about 50% ish of the remaining work ).

Client is claiming an unfair fee on the basis I agreed to do his personal ITR which he ended up doing. LOE states he would deal with it. We did offer to do it for an additional fee if he so wished. Plus on the basis that little work has been carried out.

I have indicated I will provide him with 2009 working papers and tax comps after payment.

Accounts for CH and tax payment due 31 Jul.

So questions are:-

Do you think I am right on my time split of c45% done so far

Would you do anything any different?

How far would you take it over £150?

I have stated I will do the accounts and tax comp for £400 up front but I would disengage straight after.

I think the charge is fair and if he wants the info he will pay up. He doesn't have long to do them plus I don't know if you can file iXBRL without software? Don't think he could do a full set of accounts though. Still not my problem.
Regards,

Burg

Comments

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Firstly, did you send a letter of engagement, whereby he agreed to pay fees?
  • NewbieNewbie Well-Known Registered Posts: 229
    Hi there is always one... I think the fee you have charged is reasonable for management accounts, if the fees are unpaid you can exercise an lien over the papers, however I would try to resolve the issue with the client if possible amicably as an unhappy client is bad PR, just my thoughts anyway, good luck.
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    @TC - Yes LOE issued

    @Newbie - My wish is to end amicably and thanks for reassurance on lein over records although I am aware I can on my working papers not any base records

    Thanks for the reassurance on the fee level.

    I've responded clarifying my position in terms of letter of engagement and justifying my fees.

    I'm awaiting a response...


    Would anyone do anything more???
    Regards,

    Burg
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    burg wrote: »
    Fee charged £350 so fair in my opinion.
    Definitely.

    I have raised an invoice for £150 in respect of work carried out on the basis that at c45% of last years fee it is equivalent to work carried out (i.e. final accounts work and tax work plus a meeting / conversation with the client is about 50% ish of the remaining work ).
    Sounds more than fair to me.
    Client is claiming an unfair fee on the basis I agreed to do his personal ITR which he ended up doing. LOE states he would deal with it. We did offer to do it for an additional fee if he so wished. Plus on the basis that little work has been carried out.
    Rubbish. Both what he is saying and the calibre of client!


    So questions are:-
    Do you think I am right on my time split of c45% done so far
    In your situation, I would be looking at anywhere up to 65% of the annual fee.
    Would you do anything any different?
    nope, I would get rid of him too!
    How far would you take it over £150?
    Probably up to £200
    I have stated I will do the accounts and tax comp for £400 up front but I would disengage straight after.
    also sounds fair to me.

    [other stuff] not my problem.
    Absolutely. These clients you can do without.

    He is just whinging and trying to get work for free. Good luck with the iXBRL is all I say!!
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    burg wrote: »

    Would anyone do anything more???
    Nope, don't spend any more time more than you have to, and I hope he coughs up with little extra hassle.

    These clients we can all do without.
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Thanks Jenni,

    Will keep you the thread updated, if I remember...
    Regards,

    Burg
  • coojeecoojee Experienced Mentor Registered Posts: 794
    £150 for management accounts seems like a bargain to me, what an idiot (the client not you BTW!)
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    coojee wrote: »
    £150 for management accounts seems like a bargain to me, what an idiot (the client not you BTW!)

    Thanks.

    BTW Client has responded just saying that the cheque is in the post.

    Will await clearing before releasing info.
    Regards,

    Burg
  • coojeecoojee Experienced Mentor Registered Posts: 794
    burg wrote: »
    Thanks.

    BTW Client has responded just saying that the cheque is in the post.

    Will await clearing before releasing info.

    And are the pigs flying it over?
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I believe you can use a template for ixbrl via the hmrc website but as monsoon says - good luck, using the software was hard enough!!

    Would love to see the accurate accounts produced by this one - it might be worth the £1 to download the effort he produces.

    Good riddance
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    I do already plan to download the accounts to see what state they are in.

    No cheque as yet will see tomorrow.
    Regards,

    Burg
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