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• # 82733
• Wed 09 May 2012 12:45 PM

LizFsaid:

“Currently having a dilemma about whether to take on a new client or not. They are behind in their self assessment returns (and payments) since 08 or 09. They're also behind on paying their PAYE, although have started addressing that before they got to me. The VAT is apparently up to date (although have not yet had sight of how they've been entering transactions). They've survived 2 VAT inspections and one revenue inspection in the last 5 years. The wife of the owner does the bookkeeping since they had to let the accountant go due to a stark downturn in business. She says that they haven't made much (if any) money for some time so it's likely the actual tax due isn't much if anything, although of course that doesn't matter to HMRC until you submit the returns.

I am not qualified to submit or advise on SA returns so my role would be to check her bookkeeping, and get to the final accounts position for each year in turn by doing all the things that a non-bookkeeper wouldn't know to do like depreciation and accruals etc. I am also aware that I would need to ask a lot more questions before agreeing to take them on.

I want to help them get straight, up to date and perhaps advise the lady how to do her bookkeeping better in future. That's my cuddly head. My business head is torn between the prospect of a reasonable amount of flexible work and the fact that this is not a thriving business, therefore possibly not an on-going revenue prospect. And frankly, it just sounds like a bit of a mare. I know what I'm like, I would end up feeling responsible for helping them get out of the predicatment even though I'm not qualified to navigate the SA stuff for them.

Should I just walk away recommending they find an ICB member or local accountant that can do their case justice in it's entirety? Or should I do my MLR thing and assuming that all checks out, get on with what I am good at which is putting things right accounting-wise? If so I would assist them to find someone qualified to advise on the SA side. And accountant collegue of mine even suggested that if they couldn't afford that (likely), they could ask HMRC for help.

Financially I am in a position to pick and choose clients, but I am also aware that not everyone is so fortunate and that client prospects do not grow on trees. So given that you always have a choice, what would you do?

Yours gratefully,

Liz

 ”

• Email: dinah@scorpionbook.co.uk
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• # 82736
• Wed 09 May 2012 01:00 PM

Scorpionsaid:

“LizFsaid:

“Currently having a dilemma about whether to take on a new client or not. They are behind in their self assessment returns (and payments) since 08 or 09. They're also behind on paying their PAYE, although have started addressing that before they got to me. The VAT is apparently up to date (although have not yet had sight of how they've been entering transactions). They've survived 2 VAT inspections and one revenue inspection in the last 5 years. The wife of the owner does the bookkeeping since they had to let the accountant go due to a stark downturn in business. She says that they haven't made much (if any) money for some time so it's likely the actual tax due isn't much if anything, although of course that doesn't matter to HMRC until you submit the returns.

I am not qualified to submit or advise on SA returns so my role would be to check her bookkeeping, and get to the final accounts position for each year in turn by doing all the things that a non-bookkeeper wouldn't know to do like depreciation and accruals etc. I am also aware that I would need to ask a lot more questions before agreeing to take them on.

I want to help them get straight, up to date and perhaps advise the lady how to do her bookkeeping better in future. That's my cuddly head. My business head is torn between the prospect of a reasonable amount of flexible work and the fact that this is not a thriving business, therefore possibly not an on-going revenue prospect. And frankly, it just sounds like a bit of a mare. I know what I'm like, I would end up feeling responsible for helping them get out of the predicatment even though I'm not qualified to navigate the SA stuff for them.

Should I just walk away recommending they find an ICB member or local accountant that can do their case justice in it's entirety? Or should I do my MLR thing and assuming that all checks out, get on with what I am good at which is putting things right accounting-wise? If so I would assist them to find someone qualified to advise on the SA side. And accountant collegue of mine even suggested that if they couldn't afford that (likely), they could ask HMRC for help.

Financially I am in a position to pick and choose clients, but I am also aware that not everyone is so fortunate and that client prospects do not grow on trees. So given that you always have a choice, what would you do?

Yours gratefully,

Liz

 ”

---

Hi Liz

Well it depends - doesn't it ?  Listen to your 'cuddly head' and ask yourself - do I want to do hours of work for which I probably won't actually get paid  -  am I running a charity  or a 'business '

If you really can afford the time ( there will be far more than you think ) - because such clients - bless them - have no idea how much time it takes to 'sort out a mess' rather than do it from scratch

If you need the experience and get a 'Buzz' from storing out a mess - go for it !!

However, once I reached that happy place when I didn't HAVE to take whatever was slung in my direction, I started saying NO - gently and politely, and concentrated on looking after my existing Client Base, giving them added value.  
Strangely, when you are not desperate' for work, it often comes.

Good luck liz, listen to your 'good sense head'  and then start studying for that SA qualification instead.

Cheers,
   
Dinah
 

• Email: dinah@scorpionbook.co.uk
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• # 82750
• Wed 09 May 2012 02:31 PM

Hi Liz,

I am a big believer is going with ones gut.  In my business the only time things have ended up in a mess is when I've allowed myself to be talked into doing things which my gut feeling has been not to.

Even to those new to business (I know you're not one of these) the biggest piece of advice I would give is that just because someone approaches you for bookkeeping help, doesn't mean you need to take them on as a client.  Sometimes no client is better than one who you feel like you're working for free of charge, or even worse you spend all your time wiping their nose.

The biggest pro of working for yourself is that you can choose who you work for, thats invaluable for me.

For your current situation I read that your head is screaming no.  That would be more than enough for me to walk away from.

Kris 

• Kris McCulloch
  www.ayrshireaccountancy.co.uk
  
  Winner - BKN Most Innovative Accountancy Firm 2012
  
  Latest Blog Post: Bookkeepers Award 2015

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• # 82786
• Thu 10 May 2012 10:37 AM

If you really can afford the time ( there will be far more than you think ) - because such clients - bless them - have no idea how much time it takes to 'sort out a mess' rather than do it from scratch

If you need the experience and get a 'Buzz' from storing out a mess - go for it !!

However, once I reached that happy place when I didn't HAVE to take whatever was slung in my direction, I started saying NO - gently and politely, and concentrated on looking after my existing Client Base, giving them added value.  
Strangely, when you are not desperate' for work, it often comes.

Good luck liz, listen to your 'good sense head'  and then start studying for that SA qualification instead.

Cheers,
   

Hi Liz,


I agree with what Dinah as just stated above? If you agree to take on the challenge you are going to end up spending, eventually a lot of time "sorting out the mess". Is this potential client aware and/or prepared to face extra cost knowing you are running a business not a charitable organisation?

Also the owner's  wife is already involved in producing books, where do you stand in terms of building the trust and possibly signing them for an ongoing engagement? Is she temporarily off charge  just for the purpose of sorting the problem? I would also ask myself this question on top of others you have mentioned above.

Is the effort put into going to outweigh what you could possibly gain in long-term ( an ongoing engagement?) This is the question I would ask myself if I was in your shoes.

All  the best in your decision Liz,

Kind Regards,

Nathalie

• Provide bookkeeping and virtual accountancy assistance service in English and French @nckaccountancy.
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