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Original poster

Can accountant invoice me now for work done 4 years ago?

24 replies

Luvvies · 12/01/2012 12:51

My accountant has just informed me that he omitted to charge me for one aspect of the work he does for me (about £200 worth a year) for the last 4 years and there is now about £1000 due. I usually pay about £1200 per year in fees and was not aware that this item had not been included in those fees.

He apologies and asks if I would be prepared to meet him halfway and pay £500 of this.

He runs a firm of about 10 staff, so not a one man band.

I have said "no" as I wouldn't dream of attempting to charge my clients in this way for work from years ago, I would write it off as my mistake.

But does anyone know if he can legally expect this? It's such a shame, he's been my accountant for 16 years and we've always been on good terms. I'm an easy, uncomplicated client.

Any thoughts appreciated.

OP posts:
OneHandFlapping · 12/01/2012 13:29

Do you have a contract with him? What does it say?

Is it a fixed fee contract, or does he bill for hours worked?

In either event, I'd start by writing to him saying as far as you were aware you had paid all his fees for the years xxxx to yyyy, that you were not aware of a £200 per annum increase, and that you do not accept it retrospectively.

Then start looking for a new accountant.

TalkinPeace2 · 12/01/2012 14:04

speaking as an accountant

he's taking the piss

check with his institute what they have to say about timely billing
and what does your engagement letter say
and what do the bills say : do they itemise the bits that were done or do they say charge for the period
if the latter tell him to take a running jump and sort his cashflow out in a more ethical manner

GlueSticksEverywhere · 12/01/2012 14:31

It would make me wonder if he was actually really crap at his job if he can't work out your fees accurately for 4 YEARS!

DaisySteiner · 12/01/2012 14:32

An accountant who's not got to grips with his own accounts....time to find a new one IMO!

Original poster
Luvvies · 12/01/2012 14:35

Thanks both.

I'll have to check the engagement letter, (if I can find it) but I doubt if I would have been happy with a clause that said if basically they forget to add something, we have to pick up the tab years later.

Bills are itemised, but the item in question could come under one of those categories (from my layman point of view).

This item used to be charged separately. The year it stopped with a separate invoice, that overall invoice was about £300 more, so I suspect that I thought it was included. I've not really given it much thought really and never gone over the bill with a fine tooth comb looking for something they have forgotten - why would you?

So I agree I haven't been charged, but think that's his problem, not mine. If I went into Sainsburys and they told me that they had priced something wrong in 2008 and I now owed them money.....well, it just wouldn't happen. It is a tiny fraction of his turnover.

I've told him I'm not prepared to pay, but not had a reply yet.

I feel quite disillusioned at his approach. I've always recommended him and he has gained a few clients over the years from us.

OP posts:
Original poster
Luvvies · 12/01/2012 14:44

I've never doubted his expertise before. He claims this is a system error.

But the way he is dealing with it now has destroyed my respect and trust for him as professional.

Aarrgghh I have no energy to start again with someone new. Hopefully he'll have the integrity wake up he needs and say "no worries, just thought I'd ask".

And then presumably bump up the bill over the next few years to make it up!

OP posts:
GlueSticksEverywhere · 12/01/2012 14:49

The problem is though that it is not professional to try to pass on the cost of your own mistake to a client. I have clients and I would never dream of it, they would laugh me out the door. I would change accountants if I were you (unless there is a huge apology coming your way) as it will just be awkward now.

Original poster
Luvvies · 12/01/2012 18:31

Thanks Gluesticks, I agree with you, but so didn't want the hassle. I only have contact a couple of times a year for formal end of year type stuff, and a few annual returns.

OP posts:
GlueSticksEverywhere · 13/01/2012 13:35

Have you heard back from him?

Original poster
Luvvies · 13/01/2012 13:52

Not a peep. Not even a courtesy email response.

OP posts:
GlueSticksEverywhere · 13/01/2012 14:06

That's really weird. Do you think he might be having issues?

Original poster
Luvvies · 13/03/2012 23:05

In case anyone wondered how this turned out. I found another accountant, then offered to pay half of the amount on the advice of the new accountant, (the total was actually £800, not £1000). He then effectively said bah humbug I withdraw my offer of half the amount, that was goodwill, you're off, so I want the lot.

A call to the FSB lawyers said that he had 6 years to invoice us, we should pay up, although they agreed that it was shabby practice. So I have just settled the bill.

Naturally, I am warning everyone locally in business that I know, that "these things can happen..." No slander, just fact.

Miserable git.

OP posts:
xmyboys · 19/03/2012 11:34

Dodgy!
What area are you in?

bumperella · 22/03/2012 14:43

That's disgraceful. There's prob not much you can do about itthough.

Morph2 · 30/03/2012 20:55

you shouldn't have said you were changing to new accountant until you'd settled half the bill or whatever you were going to agree to.

I work in accountancy and if we found this i don't think we'd dream of going back and charging for 4 years. we may tell the client we had not charged for 4 years in order that we could charge in the current year but would probably forgo the prior years

Lotte69 · 16/04/2012 20:11

Can anyone please offer me some advice/help. For 3 years I had been going through a most horrendous divorce (thankfully its over now - just have to deal with the aftermath!). I had a family law firm who didn't seem to want to help with the financial problems connected to the divorce, so I was recommended someone by a friend that would be able to offer me some advice. This someone was a partner in an large accountancy firm. He seemed really lovely, I gave thanks to the heavens for him as I couldn't believe someone could be so helpful and giving to me whilst I was in my very vulnerable state. He met with me (out of his office), I gave him lots of information, lots of emails went back and forth, he did a couple of spreadsheets though I didn't ask him to - he offered, we met again (this time in his office but on a Sunday when there was no-one else there).
Like I say, I thought he was a wonderfully kind man willing to help someone in distress and on behalf of our mutual friend.
Then came the shock, he said he'd have to charge me for the work and although it was nowhere near what his normal charges would be it was up to £2,500. His bill, when it arrived, was £3,500.
Was I being stupid in believing that there were kind helpful people around that were willing to give up a little of their time and expertise to help someone that was in turmoil?
Can he do this?

TalkinPeace2 · 16/04/2012 21:57

Did you sign a letter of engagement with him to do the work for you?
He's well outside his ethical guidelines to run up a non deductible fee like that without GOOD warning.
I would suggest politely asking him to justify the bill in time and fees and agreed rates up front and could he kindly give you the phone number of his institutes ethics department

MrAnchovy · 17/04/2012 00:32

Assuming you haven't missed out anything significant (like you signing an engagement letter as mentioned by TiP) he is breaking the rules both of his firm and the institute that regulates it in which case you shouldn't have to pay a penny.

Are you sure that he is actually a partner in this firm? And that this firm is a 'large' firm of accountants (are they on this list?)

MrAnchovy · 17/04/2012 00:34

Cross-posted on this thread.

Lotte69 · 17/04/2012 11:45

Thank you Mr A and TiP. I have cross posted (thread 'Accountants')! :7
Many apologies, I'm new to this and realized I should have started a new thread after posting here...Sorry.
I definitely haven't signed anything and in particular a letter of engagement, that would have scared me to death (financially) as I was having to pay huge sums to my divorce lawyers. I feel like I was lured into accepting advice from him, particularly when he told me that our mutual friend was a good one to him AND he wrote in an early email to me that he would deal with it 'Goodwill'. Then, some time later told me that he'd have to charge.
Do I just ignore his invoice which was redirected to my new temporary address (following the sale of the matrimonial home) and the email that I received last week telling me his credit control dept' are hassling him as they have passed their year end?

Lotte69 · 17/04/2012 11:54

They're not on the list, by the way Mr A. The large consortium they were part of disposed of its key businesses and I believe this firm was a management buyout?
Either way, they're bigger than me! :(

MrAnchovy · 17/04/2012 12:21

Answered here.

TalkinPeace2 · 17/04/2012 22:23

answered rather excellently IMHO !

electricray · 06/05/2012 17:40

if he's billed you something over the last four years there's a good argument that he's billed you for all work and you've paid in reliance on that "in full and final settlement". If he's mis-priced that somehow it's his problem. He's hardly going to sue you for £500.

Practically, the least you should do is tell him that if he doesn't waive the claim you'll terminate his services for the future and find another accountant. As a matter of fact, I'd do that anyway.

If the guy has any sense he'll back off immediately. Mind you, the fact that he's even tried to bill you makes me think he hasn't got any sense.

since you've paid the bill, how about telling the world about your experience on Gripe?

www.gri.pe/

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