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- Member
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Hi,
I've just been approached by a local accountancy & tax firm (ATT & IFA registered), about forming a relationship, whereby they'd outsource some of their bookkeeping work & when I refer any clients onto them, I would get a commission.
I've only exchanged emails so far, as I wanted to let them know that I'm studying for the self-assessment course so if they were looking for this type of work it would be something I would be doing myself in the near future.
I'm wondering: if I do form a business relationship with them, do I need to fill out MLR forms for them as well as any clients that come my way? Also, she wants to know how much I charge, which is £14p/h.
This si the first time I've done anything like this, so any advice would be greately appreciated - including what questions I should ask when I go to meet them.
Thanks!
P.S - This is where I love the forum, as I'd have no idea who to ask otherwise.
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Hi
I recently attended the Southampton Meeting and Gary spoke about Money Laundering - it was recommended that we fill out MLR forms for all those that we are in business with, including Accountants.
Sally
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- Member PM.Dip
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Hi there,
I have a business relationship with a firm of Chartered Accountants, I mainly do work for them on an ad hoc basis, normally around the December/January period when tax returns are due! It's mostly analysis work and bank recs, that sort of thing. I have obtained a letter from them stating that I can rely on their MLR due diligence checks and procedures with regard to any work I do for their clients and their MLO has provided me with a form to complete if I have any suspicions under the MLR.
The ICB have accepted this, so if you do this I don't think you need to do MLR checks on them or any clients that come your way through them.
(Although I stand to be corrected if we have to fill out MLR forms for Accountants)
HTH
Pauline
Edited at 28 Jun 2011 06:40 PM GMT
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- Member
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Thanks everyone! 
She's on holiday at the moment, so will ask who they're registered with when I meet in a couple of weeks.
She was fine about me doing the self-assessment course as they specialise in the more complicated things & giving specific advice for businesses. It sounds as if she knows what she's doing on the tax front as she also writes books on it.
I decided to put my fees up slightly, on the advice of several people, but have mentioned that I allow clients to set a maximum amount they want to spend.
Is there anything else I need to ask? I feel like it's a bit of a job interview for me as well (I haven't done many of those!), so want to make a good impression & it sounds like it could be an interesting firm to work with.
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- Member PM.Dip
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James @ ICB said:
“Hello all,
We are waiting for clarification on this as it seems to be changing, however, at the moment, if the accountant is registered with one of the supervisory bodies (excluding HMRC) then you just need a letter from them (on their letterhead) stating they have done the due diligence and they are happy for you to rely on it.
You then need to do your own due diligence on the accountant. Note if it is a large practice you only need to do the individual due diligence on the person you deal with.
If they are with HMRC then you need to do your own due diligence on the clients, and the accountant.
This has been relaxed as before the accountant had to be with a body in Part A of the regulation (ACCA ICAEW etc), now they can be registered with any of the supervisory bodies.”
Hi James,
So, just to clarify, I need to do due diligence on just the person I deal with? It is only a two partner practice and the guy I deal with is ACCA. What sort of questions do I need to ask him? Same sort of questions/ID as I would a client?
Pauline
Edited at 29 Jun 2011 02:22 PM GMT
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Hi James,
Thanks for that!
I think that's true to a certain extent, but it depends where you're working. I live in a small town & quite a few people wouldn't be willing to pay what they do in the city & I know that services are cheaper than in the south (as I used to live there). As they are city based I have put my fees up slightly (I didn't want to go too far).
I'll also make sure I get something in writing. They're more likey to go for this if it works both ways, i.e saying that I will not offer self-assessment services to their clients without their permission (not that I would!) That's why I want a meeting in person, as it's easier to sort things out.
I'm assuming that I only need to do due diligence & not risk assessment for the accountant? Please correct me if I'm wrong.
I'm struggling to get copies of people's forms of identification as I don't have a photocopier & normally go & see them at their premises - is there anything you can recommend for this? I assume that actually seeing them isn't enough proof. (Sorry for going off point, the MLR bit reminded me  )
Edited at 29 Jun 2011 05:09 PM GMT
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- Member PM.Dip
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James @ ICB said:
“Hi,
Just noticed I sort of missed one of your questions, I would not go below £14 ph. There have been various discussions on here, and sometimes it would appear that if you increase your fees towards £20 you can actually find more work (human nature, if it costs more it must be better )
Also make sure you have a contract or something in place. Only a few accountants use this method of contacting bookkeepers as a means of gaining clients. After a few months they contact your clients directly and offer them discounted accounting if they go direct. It only happens rarely, but you don't want it to happen to you.”
Hi James,
I only charge £10ph and £11ph for my two clients. I think they'd have a fit if I suddenly decided to increase my fees to anything like £14 or £15ph and may possibly go elsewhere. I think you have to base your fees on the level of work you are doing, where you are situated (although I'm based in the south-east and am supposed to be able to charge more!) and the size/turnover of the business.
(Or were you talking about the charge to the accountants?) 
Pauline
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- Member
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I am from up north and I can let some of the industry secrets out of the bag. The previous firms have charged me out at £47 - £57 per hour for a Qualified by experiance accountant. Junior members of staff can be charged as little as £25 per hour to £40 an hour depending on the size of accounting practice and the exams they are studying, usually ACCA or ICAS These are rates for the lower end to upper end of accountants this does not include the bookkeepers/wages clerks.
Most of the Bookkeepers who have a practice license can easily do the job of junior accounts staff and more so £20 is still a good level which is cheaper than the majority of what accountants charge. You should give them the talk and say that you are self employed you have to pay for overheads like Insurance, CPD courses, Software, ETC ETC. and quite frankly £11 an hour does not go a long way.
I understand that it is hard to get your first clients in the door so I have also sold myself cheaper than I wanted, but on the plus sides I am looking at saving one of my clients in excess of £700 on his accounts fees which is one of my USP's ( been watching too much apprentice).
good luck with it all.
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