Accountant wants Payment BEFORE Tax Submission.

[josko]

Well this is the last straw with C&N for me.

I received a letter from Chan & Naylor stating thus:

Please note that is Chan & Naylor new policy to lodge the tax returns once payment of $5,896.00 has been received in full.

This is after already receiving my bill with:

10% increase as per standard Chan & Naylor policy.

Which apparently will occur every year.

Wouldn't it be nice if we could all send letters out to our clients explaining that we will not complete their request for service until they pay for that service in full?

Regards JO

 

[Propertunity]

If your up for a change try http://www.foxgroupaustralia.com/

(Interest declared - it is headed up by one of my sons). I'm sure his business strategies don't include pre-payment of invoice before ATO submission

You have to admire C&N though - nice work if you can get it and with an inbuilt rise each year too.

 

[babushka]

I don't think C&N is alone in this. GGA does the same - you have to pay upfront before they lodge your returns and yes, the costs go up each year.

 

[josko]

Thanks Prop. I've emailed them.

Babushka,

I was wondering if other accountants did this. I was also wondering whether it was a sign of the times.

Are GGA a big firm? Sorry, I don't know what that stands for.

Regards JO

 

[handyandy]

Well this is the last straw with C&N for me.


Wouldn't it be nice if we could all send letters out to our clients explaining that we will not complete their request for service until they pay for that service in full?

Regards JO

Hi Jo

I thought there was a problem with moving away from C&N if you are using their proprietary Property Trust. My understanding was that they didn't release this document which would make it impossible to find and alternate accountant.

Cheers

 

[Andrew L]

If thats the operation of C&N I'm glad i followed my gut and went elsewhere is the holding of the trust deed true?

 

[josko]

Yes, I thought so too.

That is why I have stuck around to give them one more shot.

As soon as I find another accountant, I will be running that by them. It may be just a matter of understanding their HDT.

I am trying to track down my old accountant that left C&N and went elsewhere.

Regards JO

 

[buzzlightyear]

Maybe their clients were being delinquent in paying their bills on time?

I know when I last did my tax return, you could elect to have the refund paid minus their charges. Doesn't help of course if you are not getting a refund of the size of your fees I admit.

 

[kissfan]

I am trying to track down my old accountant that left C&N and went elsewhere.

Did his (christian) name begin with a T?

Regards
Marty

 

[JamesGG]

In defence of C&N (never thought I'd say that); payment of fees before lodgement isn't uncommon in the industry. If anything, it's good business practice. I know of some firms that require part-payment before even starting any work.

GGA is Gatherum-Goss & Assoc, where Dad used to use the same theory before he retired. I have no idea what they are doing these days.

Also, from experience, C&N generally do release their trust deeds and other documents when changing accountants. They may also ask you to sign a waiver indemnifying them against any negative outcomes that may arise as a result of using their structures.

 

[coastymike]

For new clients we have 50% up front , 25% during the job and 25% on completion. For existing clients with a good record 7 day credit terms and for those who have a history of poor payment then up-front.

In the current climate everyone is reviewing their payment terms and if they are a busy practice then this is fair.

Accountants are tiring of late payments and discussing this with a number of colleagues many of us are moving away from provision of credit and chasing recalcitrant debtors. It is good business practice.

 

[skater]

Jo, that is a large Accountants bill. Do you have complicated structures and leave a box of receipts for them to sort, or do you give everything over with most of the work already done?

My Accountant does not charge upfront, although they do take some payment out of the refunds when they come in. He does 2 personal including several rental properties and one Discretionary Trust holding yet more properties and the total bill would be less than half that cost. I do a lot of the entries on MYOB for him.

 

[josko]

Did his (christian) name begin with a T?

Regards
Marty

No, his name was Pablo.

Thanks for your replies, guys.

CoastyMike, maybe this is a sign of the times.....but maybe a notice of change in policy would have been appreciated. I guess it comes as a shock when I have been with them for 5 or 6 years.

Regards JO

 

[josko]

Jo, that is a large Accountants bill. Do you have complicated structures and leave a box of receipts for them to sort, or do you give everything over with most of the work already done?

My Accountant does not charge upfront, although they do take some payment out of the refunds when they come in. He does 2 personal including several rental properties and one Discretionary Trust holding yet more properties and the total bill would be less than half that cost. I do a lot of the entries on MYOB for him.

Hi skater,

I have all property expenses seperated and give them a total of all management fees etc on POSH spreadsheets.

I add up all general property receipts. I have 2 jobs with PAYE slips and I am self-employed.

I have 2 HDT's with 5 IP properties between them and an SMSF with 1 property JV. I have 1 x IP not in a trust.

I actually rang first thing this morning to ask whether they could take the payment from my return when it comes. True to form...I left a message and they have not yet returned my call.

It is my understanding that they have a set price for Trust returns. I also think they have a set price for SMSF.


Regards JO

 

[turk]

Received tax returns from acc. earlier this week for wife and myself.

1x paye
1x small business
4x ip's

accountants bill $1034

and he was quick and I believe thorough.

Sometimes wonder about the need for trusts and the extra costs involved.


Cheers

Pete

 

[Jazza]

Well this is the last straw with C&N for me.

I received a letter from Chan & Naylor stating thus:



This is after already receiving my bill with:



Which apparently will occur every year.

Wouldn't it be nice if we could all send letters out to our clients explaining that we will not complete their request for service until they pay for that service in full?

Regards JO

This is pretty sloppy customer relations if nothing else. I'd be interested to know Jo, how long have you been with them, i.e. are you a reliable client and paid bills reliably previously? If so, I assume it is, then this is very ordinary.

Maybe the 10% rise is to cover the 10% clients who don't like being bent over and subsequently leave.

 

[Perp]

I've been paying prior to submission for years, with 3 different accountants. I think it's becoming close to standard practise.

 

[Propertunity]

I've been paying prior to submission for years....

Perhaps you should stop listing your address as "homeless" and you might be in a better bargaining position?

 

[Perp]

Perhaps you should stop listing your address as "homeless" and you might be in a better bargaining position?

Oh, so THAT's where I've been going wrong.... LOL



Edit: Actually, perhaps rather than homeless, I should describe myself as having two homes: my "town home" and "weekender"

 

[marg4000]

We only visit our accountant once, he does the returns on the computer and hits "lodge" (or defers when we have money to pay) and we pay his bill before we leave the office.
Marg