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  1. #1
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    Default Accounting question

    Our new business accountant asked us to fill out a "Trust account engagement letter" which allows them to deduct any fees straight from our refunds.
    Is this normal practise and normally asked of accountants? Thanks

  2. #2
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    Yes it is normal.

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    turquoisecoast  (07-04-2016)

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    depends. my dh's accountant used to do that but the ato don't pay refund cheques anymore. when they complete your return, they should complete the EFT details and put your bank details, not their trust account details.

    sounds to me like a plan to just ensure they get their fees paid by deducting it from your refund which they ensure is paid to their account and not yours.

    I don't really agree with this strategy as I think it's a bit hard nosed but maybe they've had issues with client non payment and are a bit burned?

    do you have to have your refund paid to their trust account? like could you just say you'd prefer to get it paid to your own account then pay the accountant's fees directly yourself?

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    Quote Originally Posted by MrsLadyBugg View Post
    Yes it is normal.
    sorry meant to quote not thank.

    I don't agree that this is standard practice. all the firms I've worked at have never done this.

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    Quote Originally Posted by turquoisecoast View Post
    sorry meant to quote not thank.

    I don't agree that this is standard practice. all the firms I've worked at have never done this.
    Thats ok hun.

    Sorry my reply was so brief.

    All the firms i have worked for in WA it is normal, but in saying that it is normal for clients who seem to be late payers or non/bad payers.

    If you are hesitant in going with this option just let your accountant know that you would prefer the refund to come to yourself and pay for their fee upfront.

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    turquoisecoast  (07-04-2016)

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    It is fairly normal - especially for individuals/non business clients.

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    Ah ok. So we are a very small business.

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    Our firm doesn't do it, but it's not unusual, and not just for clients that the firm think may be difficult to get payment from.

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    Can they take out more than what is owed to them?

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    Absolutely not!


 

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