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Question for other accountants (practice related)


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#1 qak

Posted 13 September 2017 - 03:50 PM

Scenario:
A was external accountant for a client, and prepared annual financial reports.
Client had staff member processing daily transactions, then appoints external bookkeeper B, mid-year.
Before June 30, A is notified that their services are discontinued "as at June 30" and B is the new accountant.

The annual financial reports now need to be done - who does it - A or B?

#2 Claudia Jean

Posted 13 September 2017 - 04:19 PM

If A has been notifed their services are no longer reqd then they don't have to prepare the accounts.

#3 Mands09

Posted 13 September 2017 - 04:29 PM

B

#4 Living Type

Posted 13 September 2017 - 04:32 PM

B. No way could financial statements be prepared before 30 June

#5 Fresh Start

Posted 13 September 2017 - 05:10 PM

B

#6 qak

Posted 13 September 2017 - 05:26 PM

That's what I thought too.

A was expecting B to do them because A was finished effective 30 June.

B was all "yep, what do you want" but backed off (at speed!) when they saw what was required, and then tried to flick it back to A on the basis it's at June 30.

Apparently the numbers are nowhere near complete yet :huh:

#7 born.a.girl

Posted 13 September 2017 - 06:02 PM

Is there anything written about the deal?  Are payments made for service, or is there a monthly service fee?


Really, guidance given to A is pretty hopeless.  June 30th is a date used so much for historical accounts it should have been made clear whether it means 'accounts for up to and including June 30th', or whether June30th was the cutoff for any work being done at all.

#8 sealie

Posted 13 September 2017 - 06:28 PM

Scenario:
A was external accountant for a client, and prepared annual financial reports.

Do you mean A prepared annual financial reports in 'previous years'?

Client had staff member processing daily transactions, then appoints external bookkeeper B, mid-year.

To save money, or they just weren't happy with the service A was providing?

Before June 30, A is notified that their services are discontinued "as at June 30" and B is the new accountant.


So suddenly B (the bookkeeper) became an A (an accountant). Right?

The annual financial reports now need to be done - who does it - A or B?

#9 SplashingRainbows

Posted 13 September 2017 - 06:39 PM

Depends entirely on the engagement letter (s), and what A has already been paid to do.

If you want to discuss in more detail by PM I'm happy to do that.

It would help to know who you are in relation to the matter. Are you A or the client?
If you are A you probably aren't required to re accept the client as a client if you don't want to.
If you've been paid to do the work morally I think you should and legally you may be required to but if you've been disengaged and not paid you have absolutely no requirement to do the financials even if you are asked to.

You could also ask for payment up front if that was a concern as part of a one off re engagement.

#10 qak

Posted 13 September 2017 - 08:40 PM

View Postsealie, on 13 September 2017 - 06:28 PM, said:

Do you mean A prepared annual financial reports in 'previous years'?

To save money, or they just weren't happy with the service A was providing?

So suddenly B (the bookkeeper) became an A (an accountant). Right?

1. Original A - prepared annual financial reports for many years.
2. The bookkeeping & accountant - there was a change of management & for "cost savings"
3. Yes, B became the new accountant.

I'm neither the client, A, nor B - lets just say I need the accounts to do my job, and I have very little time left to meet my deadline. Thankfully my timeframe was phrased around them having accounts ready!

#11 sealie

Posted 13 September 2017 - 08:57 PM

Have PMd some thoughts but I would PM Splashing.

#12 Coffeegirl

Posted 13 September 2017 - 09:22 PM

We have both contracted bookkeepers who do the month to month accounts, and an accountant who does the big stuff within our business.  There is no way the bookkeepers could do what the accountant does as they simply are not qualified to do it.

From the outside I would say B talked up their experience and got A sacked.  Client thought they were getting a bargain as B wouldn't be charging as much as A.

Suddenly the client is asking B to do a lot stuff they are not qualified to do  and B is panicking.

If A was let go 'as at June 30' and not 'after completing June 30' then I think A would be able to tell them to get stuffed.    

B does the end of year financials.



#13 SplashingRainbows

Posted 13 September 2017 - 09:35 PM

Thanks for the extra context. It is not likely A has any responsibility to prepare financials based on what has been described at this point.

I'm not sure I'm comfortable with stating b should prepare them though. In my experience it's not sounding good. The entrance of a firm C for accounting may be a more suitable outcome. Possibly not something you can say though!

Hope it works out.

#14 Sweet.Pea

Posted 14 September 2017 - 06:14 AM

If neither A or B can sort it out, then it might be time to bring in C...

#15 qak

Posted 14 September 2017 - 06:30 AM

View PostCoffeegirl, on 13 September 2017 - 09:22 PM, said:

From the outside I would say B talked up their experience and got A sacked.  Client thought they were getting a bargain as B wouldn't be charging as much as A.

I think this is what happened too.

There's been a whole bunch of other stuff going on, and finally the data file "went missing", requiring B to re-process the whole year. :huh:

I'm sure I would have been gone too, except that I couldn't be pushed out that easily. It remains to be seen what happens after these reports are finally done ...

#16 Franny and Zooey

Posted 14 September 2017 - 08:22 AM

Missing data file?  That's poor practice, in our office we back up our files once a day.  Used to be to an external hard drive but now it's to a cloud.

#17 sealie

Posted 14 September 2017 - 10:20 AM

Sounds like a mess. I would keep my nose clean, concentrate on things you can control.




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