Who is the client?

Today's blog is only relevant to you if you operate your business through a limited company.

If this is the case then you are probably aware that you and the company have to be treated as separate 'legal entities'. Thus you cannot dip into the company's bank account to spend money on personal expenses. Equally your accountant has to keep in mind when he/she is advising you personally and when he/she is advising your company.

Now many accountants will try to avoid the complexities that this obligation imposes on them. Your accountant knows that you probably have a hard time understanding that your company is a separate 'legal entity'. Why should he/she make life any harder by reminding you of this complication all the time?

There are actually a number of reasons why your accountant should do exactly this. Ideally they will aim to keep things as simple as possible but they should not protect you from the distinction absolutely. If they try to do this they are not doing you any favours. They are also not operating in a very professional way at all.

So - if you do operate through a limited company - have a think for a moment. Do you know when your accountant is advising you and when it is the company that is being advised? Are some letters addressed to you personally and some to the company? Do your accountants' bills show how much of the fee relates to dealing with your personal tax issues and how much relates to the company?

If the answer to any of these questions is 'no' then your accountant may well be operating in an unprofessional manner. Does that inspire you with confidence? If not, then perhaps you need to have a word to clarify things. You can then decide whether or not to remain with that accountant or to try to find a new one.