Cancelling your accountant retroactively

accounting, tax

I handled a sad situation where a successful Florida law firm with complex tax saving history where the firm principal was not in the country and was out of communication with me for most of the year 2022. I made a written offer to handle the entire 2022 accounting services except billing and bill payments as usual a year ago but never heard any reply. The billing for $6,000 was not authorized. Still, it is not unusual for me to perform services for a business client prior to an agreement so I handled all the accounting work including their 2021 tax returns as usual through the end of the year. In this case, all of the financial risk is on me. They are not obligated for any of this work until they accept the agreement. But he has been a good client, is growing his business, and wrote a glowing review a year ago.

Earlier this month (January 2023) he told me that they had a new less expensive accountant, and I should not perform any services for 2022. I closed the account and wrote off the proposed agreement. Then they realized that they still have 2021 tax returns due soon on February 15. Tax returns for Florida residents are due later than the rest of the country. I don’t know if they realize that 2022 payroll will not be filed. I doubt that another accountant could catch up on a year’s work in that time, that they understand the legal risks in this case, or do all that work for a lower price. It would not be appropriate for me to be involved now but I said that I would speak with the new accountant if they wanted.

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accounting, tax

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