We've all heard a scary story about accountants. How about this one.
A retailer who trades in a Scottish village has been hit with a bill for over £17,000 from his accountants for doing the books for three years and handling an Inland Revenue investigation. As his turnover is £2,500 a week, he can't afford to pay, and says he has been put on the verge of bankruptcy through no fault of his own.
In the last few years this retailer has suffered 37 break-ins or attempted break-ins. On one occasion his shop was broken into twice in one night and at another time there were four break-ins in one week.
His accountancy firm had written off quite a lot of the losses against tax, which was why Inland Revenue chose to investigate. It would appear his accountants charge around £3,000 pa for doing the books, with the rest of the bill coming from the work they did to satisfy IR's investigation. This seemed very steep to him, as all they were doing was checking their own figures and sitting in on an interview.
His new accountant agrees the bill is very steep and is going to take the problem to the Financial Ombudsman.
Not every retailer feels the need to hire an accountant, preferring the DIY approach. And indeed there are software packages tailored to the retail trade.
But for those who do hire the help, bear in mind a few points.
n You are entitled to a detailed breakdown of the bill
n You are entitled to see your accountant's diary
n You are entitled to know what the hourly rate is
Large accountancy firms are likely to present you with large bills. There is a good case for choosing a small, local firm which will be familiar with the local banks, tax and VAT offices. Recommendation is the best selection method.
The Institute of Chartered Accountants produces a directory of its members. Ring 020 7920 8100 (for England and Wales) or 01908 248048 for the professional conduct department.
Scotland's Institute of Chartered Accountants can be contacted on 0131 347 0100. To complain, ring the Legal Services department on 0131 347 0280.
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A retailer who trades in a Scottish village has been hit with a bill for over £17,000 from his accountants for doing the books for three years and handling an Inland Revenue investigation. As his turnover is £2,500 a week, he can't afford to pay, and says he has been put on the verge of bankruptcy through no fault of his own.
In the last few years this retailer has suffered 37 break-ins or attempted break-ins. On one occasion his shop was broken into twice in one night and at another time there were four break-ins in one week.
His accountancy firm had written off quite a lot of the losses against tax, which was why Inland Revenue chose to investigate. It would appear his accountants charge around £3,000 pa for doing the books, with the rest of the bill coming from the work they did to satisfy IR's investigation. This seemed very steep to him, as all they were doing was checking their own figures and sitting in on an interview.
His new accountant agrees the bill is very steep and is going to take the problem to the Financial Ombudsman.
Not every retailer feels the need to hire an accountant, preferring the DIY approach. And indeed there are software packages tailored to the retail trade.
But for those who do hire the help, bear in mind a few points.
n You are entitled to a detailed breakdown of the bill
n You are entitled to see your accountant's diary
n You are entitled to know what the hourly rate is
Large accountancy firms are likely to present you with large bills. There is a good case for choosing a small, local firm which will be familiar with the local banks, tax and VAT offices. Recommendation is the best selection method.
The Institute of Chartered Accountants produces a directory of its members. Ring 020 7920 8100 (for England and Wales) or 01908 248048 for the professional conduct department.
Scotland's Institute of Chartered Accountants can be contacted on 0131 347 0100. To complain, ring the Legal Services department on 0131 347 0280.
{{INDEPENDENTS }}
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