Using an accountant who is your friend in a different town?

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Batman

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Topic # 243667 24-Dec-2018 13:49

Hi I don't know any accountants where I live and I know a friend who owns an accountant firm in a different city. Is it ok to use an accountant who is

a) a friend

b) who lives in a different town?

Thanks

Swype on iOS is detrimental to accurate typing. Apologies in advance.

xpd

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Reply # 2150015 24-Dec-2018 14:00

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Yes to both, but I would avoid (a) where possible. You are giving them access to your financial life, and if things go sour somewhere...........

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richms

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Reply # 2150019 24-Dec-2018 14:15

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I wouldnt use a friend for that sort of things. If they were any good as an accountant they would refuse to.

Richard rich.ms

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Reply # 2150020 24-Dec-2018 14:17

Yes what was I thinking lol

Swype on iOS is detrimental to accurate typing. Apologies in advance.

Hammerer

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Reply # 2150023 24-Dec-2018 14:32

What sort friend? The type of relationship and the level of commitment is important becauseyou may have to forgo friendship for the sake of your business.

What sort of experience do you have working together? No experience then no trusting with your finances. A lot of experience will have exposed you to your friend's modus operandi (work habits and behaviour).

What sort of overlap is there between your shared friendships? The greater the overlap then the greater the assurance that you are likely to stay friends BUT the greater the likelihood that your confidential information will be revealed, inadvertently or by design.

Batman

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Reply # 2150024 24-Dec-2018 14:36

i think i have my answer guys, thanks

Swype on iOS is detrimental to accurate typing. Apologies in advance.

mentalinc

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Reply # 2150061 24-Dec-2018 14:50

From the code of ethics for CA ANZ (NZICA):

280.01

A member in public practice shall determine when providing any professional service whether there are threats to

compliance with the fundamental principle of objectivity resulting from having interests in, or relationships with, a client or

its directors, officers or employees. For example, a familiarity threat to objectivity may be created from a family or close

personal or business relationship.

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eracode

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Reply # 2150103 24-Dec-2018 15:37

I know OP is talking about accountant - lawyer relationship is similar. One of our best and oldest friends is our lawyer - for over 40 years. He became a friend when we were all at uni - so friend before lawyer.

Has worked out ok but I can envisage situations where it might become tricky. Not sure if I would do this again if we had our time over again - mainly because if he cocked-up (has never happened) it would be extremely difficult to hold him to account. Has only ever had to do simple stuff - conveyancing, wills and Enduring Powers of Attorney - so no great risks but you never know.

quickymart

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Reply # 2150329 25-Dec-2018 06:28

My stepmum is my accountant, and lives at the other end of the North Island. No issues so far (over 20 years).