Time Limit on Accountant Invoicing?

Citizen_Pete

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Hi!
I'm a sole trader working in Dublin. We've had an accountant doing our books for nearly 17 years. No major complaints on the service provided. He is however very lax at invoicing and we have not received an invoice for services in at least 6-7 years. I have reminded him and complained several times and he's always said they'd be provided shortly. In the post etc etc

I only deal with him 1-2 times a year so the matter would be forgotten until the books are due again and we'd have the same conversation.

Thing is he is now planning to semi-retire and his business partner taking over our accounts has advised they are preparing a bill for total 25KEUR due immediately, our contribution to his retirement fund I imagine...

I have seen in the UK that there is a time limit if you fail to invoice a client for services in a timely manner. Is there any similar time limit in legislation in Ireland? I do plan to pay him something but I do not have 25K and to be honest I do not believe we should be on the hook for such a large payment given he has managed his own cash flow so poorly.
/Pete
 
You could,of course, have sent payments 'on account' at any time.(Say when you got the printed accounts,with the accountancy fees itemised in it)
Best set up a payment plan.
 
Well that's a way to lose clients quickly!!

If you have raised the issue with your accountant on several occasions and never been billed, tell them that's their internal issues to sort out. You are willing to make some sort of contribution for past services on a payment plan basis but I wouldn't pay him €25,000 for services that weren't billed due to their own sloppiness.
 
If the 25k accountancy fees have been posted to your profit and loss over the past 6-7 years you will have a creditor accrual for the same amount if you have paid nothing. What do you accounts reflect?

If the 25k due to your accountant is in your accounts and you don't have the funds, then you should do as vandriver suggests and agree a payment plan.

If they haven't bothered to record their fees in your accounts then I'd say you are in a much stronger position to dig your heels in and only agree what you think is fair given your current circumstances.
 
€25k over 7 years? It works out at €3,571 per year. Seems high for a sole trader who only engaged with his accountant once or twice a year.
 
The partner remaining around over must have thought all his Christmases come at once. I'd be leaving this place without a second consideration.

He is only entitled to do this if he has a letter of engagement in place and that it provides for this. If he has no letter of engagement in place then he doesn't have a leg to stand on. I'd engage a new accountant and request your new accountant to seek professional clearance as is normal.

If the remaining partner proceeds to issue a bill for a ridiculous amount report them immediately to their professional body, file a data protection request and offer them something (e.g €2K or whatever you want) . If he tries to enforce the invoice in Court the first thing the judge will ask for is a letter of engagement. No contract/letter of engagement - good night. I've seen very similar happen before (the letter of engagement not some chap looking for €25K)
 
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