A Strange Encounter with My Accountant: Who’s Really Losing It?
Hello everyone! I find myself in a perplexing situation with my accountant, and I’m reaching out for your thoughts and experiences to help clarify if it’s me who’s out of touch or if things are askew on their end.
Back in January 2022, I took the plunge and acquired a small business. I filed my taxes for 2022 using an online tax service but decided to request an extension for 2023. My goal was to find a more seasoned accountant to handle my filings for that year, review 2022 for any necessary corrections, clean up the financial records, and provide ongoing advice.
After some consideration, I decided to engage the same accountant who previously supported the business owner. They were local, had solid reviews, and already had some familiarity with the business. I signed on with them in March and met in late April to discuss my needs. Shortly after, a junior project manager, whom I’ll call Stacy, reached out to me and my bookkeeper with a detailed list of documents and reports required for our file. We promptly gathered everything and submitted it to her by mid-May.
Once I submitted the necessary materials, Stacy provided a budget for the full project, which was just under $5,000. I was okay with the outlined expenses, which included year-end tasks, reviews, filings, and meetings to discuss everything. After approving the budget, I inquired if further information was needed, to which Stacy assured me all was well and they’d begin their work.
However, the silence that followed for over a month was unnerving. When I checked back in late June, she mentioned she would put together a budget—despite my having already received one in May. After approving this new budget, she informed me she was busy with another project and wouldn’t be able to address mine until after July 15.
Following up around that date, I learned that they couldn’t proceed until obtaining access to our QuickBooks software. As we use the desktop version rather than the online option, they claimed this was absolutely necessary before proceeding. Shortly after, the senior accountant reached out, promising to work with their IT team to resolve the access issue. We decided on a remote access solution, and I guided my bookkeeper on setting this up.
Another two weeks passed—now we were into early August—and I still hadn’t seen any movement on their end regarding the remote access. When I called Stacy recently, she said she was too busy to delve into anything this week, prompting me to follow up yet again.
Then, the real shocker hit: I received an invoice for $1,300. This included a “breakdown” of their work, originally set at $1,700 but generously discounted. The breakdown detailed charges for every single interaction we had: from our introductory meeting (billed at $525) to every email sent and received, plus the time taken to organize my previously submitted reports at a rate of $78. Oddly enough, even the time spent helping Stacy was included in the hourly rates.
I was absolutely taken aback. While I don’t have extensive experience with accountants, every interaction I’ve had before this was based on a flat fee structure for filings and consultations. Now I find myself frustrated because it seems we’re no closer to finalizing any fillings than we were back in April.
I’m curious to hear from those with more experience: Is it me who’s lost in this situation, or is the firm acting a bit out of line? I believe in paying for work done, but I never expected to be billed for absolutely every email and phone call, especially when the invoice reflects no actual filing progress!
Thanks for taking the time to read my situation. I can’t wait to hear your thoughts to help me figure out who needs a reality check!
2 Comments
It sounds like you’re navigating a particularly frustrating situation with your accountant, and it’s completely understandable to feel exasperated given the circumstances you’ve described. Let’s break this down to understand if it’s truly unreasonable on your part or if there are red flags worth noting.
Communication and Expectations
Clarify Billing Practices: It’s crucial to understand how billing works with any professional firm before engaging their services. Some accountants operate on a billable hour model, while others might offer flat rates, especially for specific services like tax filing. If the firm you’re working with didn’t clearly communicate their billing practices upfront, that’s a significant oversight on their part. In the future, it would be beneficial to ask for a detailed explanation of their billing structure and any anticipated costs before starting the project.
Set Clear Expectations: At the outset, it’s helpful to outline what you expect in terms of deliverables and timelines. When you agreed to the budget, did you discuss what tasks would be covered under that budget? It’s important that both you and the accountant are on the same page regarding what constitutes “tax filing work.” If they are billing for every interaction but not delivering on the main tasks, that’s a valid concern.
Work Quality and Progress
Evaluating Progress: From your description, it seems like the firm has not progressed towards the actual filing of your taxes, which is a primary obligation they agreed to undertake. Monitoring their progress at defined intervals and asking for specific timelines can help keep the work moving. If they continue to cite issues with accessing QuickBooks without providing a resolution, that’s a red flag.
Assessing Professionalism: Charging for every email, conversation, and interaction is indicative of an accountant or firm that may not prioritize customer service. Typically, a balance exists where initial consultations and project setup discussions are built into larger service fees. If the partner you initially met with did not clarify that communicating about the project would be billable at their regular rates, this lack of transparency can feel unprofessional.
Evaluating Your Options
Consult with Peers: Consider reaching out to other business owners or checking online forums and reviews to see if anyone has had a similar experience with this accountant or firm. This could provide insight into whether what you’re experiencing is common within the industry or particular to your situation.
Explore Alternatives: If the disengagement from your accountant continues, and they don’t seem to address the core concerns of timely filing and actual invoicing for completed work, it may be worth exploring other accounting firms. Look for those with strong reviews regarding client relationships and transparency in billing.
Resolving the Situation
Open a Dialogue: It might be worth scheduling a direct call with the senior accountant you initially engaged to express your concerns. Ask for a breakdown of the work completed, reiterate your expectations, and seek a clear path to moving forward—that includes a specific timeline for filing your taxes.
Document Everything: Keep records of all communications, invoices, and documents shared. This not only protects you but also provides necessary context if any disputes arise. If you find you have to escalate the situation or discuss it formally, having a paper trail will be beneficial.
Ultimately, while you’re not ‘crazy’ for feeling frustrated, it’s also crucial to assess where expectations may have gone astray. In business relationships, clarity in communication, transparency in billing, and accountability for deliverables are key components of success. Your time and financial resources are valuable, and you deserve to work with professionals who recognize and respect that.
Thank you for sharing your experience; it sounds incredibly frustrating. It’s clear that you’re seeking clarity and efficiency, which is entirely reasonable when it comes to accounting services.
From what you’ve described, it sounds like there are significant breakdowns in communication and expectations on both sides. The shift from a flat fee structure to hourly billing for every interaction is certainly an atypical practice in the accounting field, as many firms operate under a flat fee model for the kinds of services you were seeking. It’s crucial to establish not only the services covered but also the billing practices before signing any contracts.
One approach you might consider is to have a candid conversation with your accountant about these unexpected charges and the lack of progress on your filings. It might also be helpful to address your expectations moving forward—emphasizing the need for clear timelines and deliverables. If they are unable to meet these expectations, it may be worth exploring other accounting options that align more closely with your needs.
In the future, it could be beneficial to request a detailed engagement letter at the outset, which outlines the scope of work, timeline, and fee structure, including what is considered billable. This way, both parties are aligned on expectations and avoid any surprises down the line.
You are certainly not “crazy” for questioning this situation; it’s about advocating for your business and ensuring you have the right support for your financial management. Best of luck navigating this, and I hope you find a resolution that works for you!