Can I have more than one accountant?
We get asked this often!
Typically a self-employed person already has an accountant that they know, like and trust looking after their affairs – but they get uneasy every time they ask their existing accountant a property question. The accountant needs to look up the answer or isn’t certain. We hear this often and that’s where our property specialist services can help!
Where investing via a limited company, we can look after the property company for you. It is a separate legal entity and thus can easily be looked after by another, different accountant without disturbing your existing business relationships or arrangements.
In the early years, you will likely be putting money into the company to grow the asset base and income. During this time there is no need for your two accountants to talk.
In the fullness of time and when there is sufficient income and cash available in the company, you may wish to access some of this. At this stage, we can prepare a report for your existing accountant giving them the range of possible dividends and profit that is available. They can, with their helicopter view and knowledge of your overall income and tax affairs, then advise you as to how much you can take and in what manner to be as efficient as possible with regards to tax.
But this is typically a few years down the line.
Already have an accountant but want to switch accountants?
Where you are looking to change accountants, this should be a relatively easy and painless switch over.
Sadly, it is not always the case.
Sometimes there is a bit of anger at losing a client and handover is made more awkward (this is just confirmation that you have made the correct decision to move on). We have in rare cases agreed to take over a client on the first day of the next, new financial year where the existing accountant has made it tough for the client to switch. This is rare and thankfully, in most cases, handover goes fairly smoothly with a proper professional attitude from all parties.
In terms of our code of ethics, before engaging you as a client we need to obtain professional clearance from your existing accountant as to whether they know of any reason that we should not accept you as a client.
Step 1:
Informing you existing accountant that you wish to leave and give them permission to speak to us and release records.
Then let us know you have done this and who we need to follow up with. We have sample letters that we can make available to you to help and assist you with this process.
We will email them to obtain this professional clearance that we need.
Step 2:
We can’t chase them and have to wait 2 weeks before following up on our initial request. This is considered reasonable time.
You on the other hand can chase them!
After 2 weeks we will follow up again and then are required to wait a further 2 weeks. Again, you can follow up and prompt them to respond if need be.
Step 3:
They should provide us with confirmation that we can act for you.
They should also hand over the last 2 years’ worth of records along with key details (year end adjustments, registration numbers, etc). This is done so that we are up to speed with anything specific to your situation so that no balls are dropped.
Step 4:
We can now act for you having received this professional clearance.
We will issue all the engagement and on-boarding paperwork we need to get you on board with our property specialist services.
A word or warning
While professional clearance can be smooth, it can also drag on. We have to also onboard you and get various authorities in place. The sooner you can do this having made you decision to move accountants, the better. Don’t leave it too late!
