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Outsourcing to accountants

  • Member PM.Dip
  • Practice Licence
  • 44 posts
  • # 76383

Hi all

I was wondering if anyone had any advice on the pros/cons and legalities of out sourcing to an accountant.  

I've been contacted by a firm of chartered accountants, offering their services for limited companies statuary accounts and corporation tax returns.  The set up is that the clients would only deal with me (and be charged by me) whilst I would give the accountants the trial balance and pay them a fixed fee (with the amount I charge the client being entirely up to me).

It seems like a great plan, but is it too good to be true?


Any advice would be greatfully acheived

 Lucy
sarah
  • Companion Fellow PM.Dip
  • Practice Licence
  • 1137 posts
  • # 76401

Hi Lucy.

Just a few thoughts.  Could I suggest you contact the ICB regarding this issue, not for any bad reason.  I mention this because your client would need to be aware that the accounts were been provided by another company, for the reasons of your professional Idemity Insurance.  You may be okay with the accounts , but it is your practice  name and your responsibility if the HMRC or companies House investigate for any reason and find something wrong. 

I do outsource to accountants but I let them do the invoice at an agreed rate with myself and I invoice them for the commision .  

  • Sarah Douglas C.FICB

    HouseTree Business Ltd 


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kjmcculloch
  • 1159 posts
  • # 76402

Hi Lucy,

This was discussed recently.  It seems that outsourcing for work you are not qualified to do goes on already with regards to payroll and it was suggested this may be something worth exploring in the future.

http://www.bookkeepers.org.uk/forum/Thread.aspx?type=&cid=0&tid=82820&lp=74762&page=1&sort=

I'm willing to bet it was the same accountants who contacted you as contacted myself, Alex Apps?

Kris 
gigagirl
  • 220 posts
  • # 76482

They contacted me too.  I told them that I couldn't as it was against t&c  of ICB membership.  Spoke to the accountant I work with and she told me that the rates they were offering were really expensive anyway, just for returns.  I'd rather give the work straight to her.
David
  • Fellow PM.Dip
  • Practice Licence
  • 424 posts
  • # 76665

Hi

I too was contacted by 'Alex Apps' with regard to outsourcing final account for limite companies.

I spoke to a very nice gentleman at the ICB and basically they said that they were going to discuss it as it seemed like a good prospect. The main concern was that the accountant was not in contact with the client and if anything did go wrong it would fall into the lap of the bookkeeper. This is where it needed to be discussed so that the ICB could continue to support it's members.

Would love to know the outcome, hopefully they reach a decision soon.
  • Member PM.Dip
  • Practice Licence
  • 44 posts
  • # 76688

Hi all

It sounds like this is a subject that has got a few asking questions!  Hopefully the ICB will come up with a diffinitive answer soon.

Actually, I wasn't contacted by Alex Apps, but by Apps Accountancy Service - has any one else been contacted by them?

Lucy 
David
  • Fellow PM.Dip
  • Practice Licence
  • 424 posts
  • # 76691

LucyCsaid:

“Hi all

It sounds like this is a subject that has got a few asking questions!  Hopefully the ICB will come up with a diffinitive answer soon.

Actually, I wasn't contacted by Alex Apps, but by Apps Accountancy Service - has any one else been contacted by them?

Lucy ”

Just a note to point out that Alex Apps is (or part of) Apps Accountancy Services.
Trippy
  • Fellow
  • Practice Licence
  • 109 posts
  • # 76764

Hi

This is interesting as I do market to accountants as I like to work with them and the clients so the businesses gets the best financial service.

I take the view - and correct me if I am wrong - It is about where the risk lies and who gets paid. In my T&Cs I say what I do but also say that the accountant is reponsible for his bits. If I work through an acocuntant - like Sarah above - It is the accountant that invoices the client and I invoice the accountant. (not happened yet but the processes and paperwork in place :).

Lucy it wasn't clear who charges for preparing the accounts from trial balance, i assume it is them. If you are charging only for work covered by you PI insurance I see this as a route to market - My concerns is that bit that says "the clients only deal with you". It sounds as if the accountants are hiding behind you.

Like Andrea I would rather work with an accountant that knows their client. There is more to an accountant than just doing the accountants and a good accountant  knows the client can offer a much more cost effective service.

Any way end of waffle and I will keep an eye on the thread and any views from ICB.

Clare
  • Fellow PM.Dip
  • Practice Licence
  • 3 posts
  • # 76890

Hi,
I share some of my clients with a couple of accountants and we work closely together to provide the best service for the client. I am responsible for accounts to TB, payroll and VAT etc and any management accounts. Final YE accounts are provided by the accountant at a reduced cost to the client.This works extremely well, and is cost effective for the client. but we both operate MLR and are responsible for our own work, which is essential.
We also end up feeding each other clients and is working very well.

Chris
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