Results 1 to 7 of 7

Thread: Responsibility of previous accountant to furnish supporting documentation

  1. #1
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    261
    Thanks
    52
    Thanked 39 Times in 35 Posts

    Responsibility of previous accountant to furnish supporting documentation

    Good Morning guys,

    I have a situation with a previous accountant:

    I have taken over a client from her. The client asked me to handle his income tax affairs from 2014, and to enquire on some outstanding refunds from 2014.

    The client's documentation was handed over by the previous accountant yesterday. After going through all the paperwork, I realised that she didn't provide me with tax type reports for the VAT201's, or any reports of her work done on Pastel.

    I found her invoices issued to the client, and she specifically charged him for her posting work on Pastel.

    I immediately contacted her to ask for either the pastel company or detailed ledgers of the general ledger, customers and suppliers, as well as her VAT reports.

    She simply forwarded a trial balance for the year.

    Is the client not entitled to the data, as he paid for the work done? I simply think it is not fair for the client to have to pay me for an entire year's work, when he has already paid the previous accountant. Furthermore, I am of the opinion that she should be able to support her figures in the VAT201?

    This is the second time she has done this.

    Is this normal procedure? Am I being unreasonable?

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    IMHO, the reason that your client moved accountant says something, either the previous accountant was too expensive, or simply not providing the service being paid for.

    At this stage, the client should contact the previous accountant, and demand the necessary information and data, and if the previous accountant can or will not provide the required information, then your client should open up a case of fraud against the accountant, for charging for work not done.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  3. Thanks given for this post:

    dellatjie (19-May-14)

  4. #3
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    261
    Thanks
    52
    Thanked 39 Times in 35 Posts
    @Justloadit - Are these not sufficient grounds for reporting her?

    She has the following designations:
    SAIT (SA), GTP (SA), Aff. F.M.I. (SA), MICBA (SA) CSBIcba (SA), SA-AA, and is registered as a tax practitioner.

    According to the info available on tax practitioners on SARS's website, the following are grounds for reporting someone:
    ▫ Not registered as a practitioner
    ▫ Unprofessional conduct
    ▫ Unlawful conduct
    ▫ Not acting the taxpayer’s interest

  5. #4
    Email problem KimH's Avatar
    Join Date
    Jul 2010
    Location
    Cape Town
    Posts
    362
    Thanks
    167
    Thanked 63 Times in 52 Posts
    @Dellatjie,

    I have found myself in this situation once or twice as well. Some accountants/bookkeepers are just downright adamant about not handing files over to the new guy for either professional reasons or that the client still owes them money. My suggestion would be to contact the previous accountant and find out what the reason for not handing all files over are, if she point blank refuses to deal with you - then rather ask your client to apply pressure.
    Good luck and let us know what happens.
    "If at first you don't succeed, do it like your mother told you."

  6. Thanks given for this post:

    dellatjie (19-May-14)

  7. #5
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    261
    Thanks
    52
    Thanked 39 Times in 35 Posts
    Hi there!

    You will not believe me, but she forwarded me her Pastel company today! I am so relieved.

    Thank you guys!

  8. #6
    Email problem KimH's Avatar
    Join Date
    Jul 2010
    Location
    Cape Town
    Posts
    362
    Thanks
    167
    Thanked 63 Times in 52 Posts
    Quote Originally Posted by dellatjie View Post
    Hi there!

    You will not believe me, but she forwarded me her Pastel company today! I am so relieved.

    Thank you guys!
    "If at first you don't succeed, do it like your mother told you."

  9. #7
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    261
    Thanks
    52
    Thanked 39 Times in 35 Posts
    It seems as if my battle is not over yet.

    The abovementioned bookkeeper submitted a VAT return with a net result of 43 000 receivable, but her tax type report (which was submitted as supporting docs!!!) shows that the client has to pay 18 000...

    I gave her a proper summary of the difference between the VAT201 and the Tax type report, but she simply will not reply to my mails.

    Other than that, I am of the opinion that she advised the client incorrectly by advising him to register for VAT, when all he earns is commission - he receives a yearly IRP5 as well!!

    Problem is, this client have already received several refunds during the last 6 months, as VAT was claimed on every expense even though it did not relate to "vatable" receipts.

    What to do, oh what to do??

Similar Threads

  1. Documentation Number
    By Simimano in forum Accounting Forum
    Replies: 0
    Last Post: 19-Mar-13, 11:25 AM
  2. Company Equivalent to Supporting Documents
    By BusNavig8 in forum Tax Forum
    Replies: 0
    Last Post: 13-Feb-12, 01:42 PM
  3. responsibility
    By murdock in forum Electrical Contracting Industry Forum
    Replies: 4
    Last Post: 21-Sep-09, 03:53 PM
  4. Supporting local business
    By Pap_sak in forum General Business Forum
    Replies: 4
    Last Post: 07-Mar-09, 08:59 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •