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  • 1.  Successor account document request

    Posted 11-28-2023 02:11 PM

    We have received correspondence from the new accountant for one of our long-time clients. They have asked for a very extensive quantity of prior records. My question addresses the required documents to be supplied.

    1. If we have sent the clients all of his tax returns, both business and personal, over the past 3 years requested, is it necessary to supply these returns to the successor accountant?
    2. If the company records are maintained on Quickbooks, is it necessary to recreate general ledgers, journal entries, etc?
    3. Accountants' workpapers: It's my understanding that workpapers are not required to be handed over...has this changed?

    Thank you...we appreciate any assistance you can provide.



    ------------------------------
    Karen Meyerowitz
    CPA
    MEYEROWITZ & MEYEROWITZ, CPAs
    Amityville NY
    516-379-2770

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  • 2.  RE: Successor account document request

    Platinum Most Valuable Member
    Posted 11-28-2023 02:31 PM

    I have been here before. My carrier CNA, told me to give them everything...boy were they no help.

    I ultimately did not, for we were not paid. And it was my work product.

    However, I did give them PDF of the G\L  & F\S.

     

    Currently I have a new client whom we have made a request for info from the prior accountant.  They asked for money upfront for copies of prior returns.  This I understand

    However, They are declining to give any reconciliation from the bank statements to the financials.

    I can only tell you that I would be more helpful to a successor accountant. , if my client left on good terms

     

    Hope this lends some insight

     

     

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     

     




    Original Message


  • 3.  RE: Successor account document request

    Silver Most Valuable Member
    Posted 11-29-2023 07:56 AM
    This is a common problem for CPAs when a client goes to a new accountant.

    Sure, the malpractice insurance company says to give the client everything they want to avoid potential issues.  It's their job to avoid problems for both you and themselves.

    From a practical perspective, much depends on the situation, primarily if all your fees are paid.  

    Certain records belong to the client and have to be turned over.  This would include the Quickbooks file.  You can copy a selected period onto a flash drive or print out the reports including full G/L and journal entries.  They should also get the last bank rec and select schedules (depreciation).  Assuming you already provided copies of all tax returns, you can charge a reasonable amount for producing duplicate copies.  In all likelihood, the former client is just being lazy and thinks of you as their photocopy service.  If you require advance payment for duplicate work, they may back off and do it themselves or have their new accountant do it for them.  As for your workpapers, I don't think you need to send them anything that goes beyond the essential client books and records.

    Ultimately, this is a business decision that involves some personal feelings about losing a client and whether you want to give them what they ask for and be done with them, or if you decide you will only give them the minimum required.  Again, being fully paid up to date generally goes a long way towards an amicable split.

    --
    Larry Prosky CPA
    Prosky & Rosenfeld LLP CPAs
    1025 Old Country Road
    Suite 403 W
    Westbury, NY 11590
    Direct: 516-873-9600 x1
    Fax: 516-873-9602
    Cell (Text) 516-661-6020
    Other: 516-785-5658
    e-mail: larry@prcpallp.com


    Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.  If desired, Prosky & Rosenfeld LLP CPAs would be pleased to perform the required research and provide you with a detailed written analysis.  Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.  

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    Original Message


  • 4.  RE: Successor account document request

    Platinum Most Valuable Member
    Posted 11-29-2023 10:44 AM

    I agree word for word  with  Larry.

     

    IT's also your last chance to collect any receivables if applicable.

     

     




    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.