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Continuity of practice requirements

  • Member PM.Dip
  • Practice Licence
  • 27 posts
  • # 114887

As a fairly new ICB Practice Licence holder and sole trader in my early 60's it occurred to me that the question of my mortality or ability to continue in the event of illness could be more uppermost in a prospective client's mind than it would be if I were younger.

I have never been asked the question "What happens to my books (and my business) if for whatever reason you could not continue as my bookkeeper?".

But it's a valid question to which I would have no answer so I did some digging and came up with his from one of the main accountants' associations:

"..... requires all practitioners and regulated firms to make arrangements so that the professional needs of their clients will be dealt with if the practitioner dies or becomes incapacitated through illness. It is mandatory that a written agreement be made, and this may be inspected by ....

A sole practitioner must enter into an agreement with a practising accountant or a firm (whether incorporated or in the form of a partnership) of practising accountants whose practice is based in the same country. (Practitioners can appoint more than one continuity provider.) Practitioners must ensure that their continuity nominees hold the same levels of authorisations as they do....." 

etc etc it goes on for 9 pages!

Has anyone experience of this?

What's the ICB's advice?

  • Member
  • Practice Licence
  • 46 posts
  • # 114899

Hello Peter,

 

Hmmm yes this is a good point as this question pops up more than 'what are your qualifications' in my experience. And I'm not THAT old (maybe i just look ill!) If you like your clients, I would make some provision.

 

You could try and find a local bookkeeper and enter into a reciprocal agreement.

 

It also depends on the type of work you are doing as to the severity/consequneces, so payroll, vat returns anything really time sensitive and with penalties that affect other peoples lives should be mitigated. The accountants of course will be exposed to much more risk and as such so are their associatons  requirements.

 

Also think about insurance such as critical illnes cover as a few grand in the bank means you could employ a locum etc.

 

Think too about your own business. If the worst happens would someone need access to your bank account as that is where you keep all your money. I've found the banks can advise on this.

 

Hope that helps.

  • Member PM.Dip
  • Practice Licence
  • 117 posts
  • # 114907

Hiya

 

This subject comes up every now and then.  I haven't checked but it was part of the Professional Conduct Regulations to have continuity.  But like CPD it is not checked by ICB.

 

https://www.bookkeepers.org.uk/Forum/?type=&cid=0&tid=82828&lp=0&page=1&sort=

 

We should ask ourselves: What is best for our clients?

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