A friend has decided to find a new accountant because she is not happy with her current accountant. Her unhappiness comes partly from the fact that she was charged significantly more than the estimate for the services provided. That bill is in dispute, and not yet resolved. Her current accountant has her files and her records.
Does an accountant in NY State have the legal right to keep her records as leverage to force her to pay the bill? Or must he return her records promptly upon request, even if the bill has still not been resolved?
If he is required to return the records but refuses or delays unreasonably, what steps are open to her?
A client’s records are any accounting or other records belonging to the client that were provided to the CPA by or on behalf of the client. If an engagement is terminated prior to completion, the member is required to return only client records.
Working papers belong to the CPA until fees are paid.
Under no circumstances should a CPA refuse to return client records in order to force payment for services provided.
Accounting Tutorial Accounts Payable Training Lesson 10.1
February 7th, 2010 at 9:05 am
hell no.
References :
gaap
February 7th, 2010 at 9:54 am
The accountant probably does not have a right to the records. You should contact an attorney or legal aid immediatly for assistance.
References :
February 7th, 2010 at 10:18 am
A client’s records are any accounting or other records belonging to the client that were provided to the CPA by or on behalf of the client. If an engagement is terminated prior to completion, the member is required to return only client records.
Working papers belong to the CPA until fees are paid.
Under no circumstances should a CPA refuse to return client records in order to force payment for services provided.
References :
http://www.consumer.state.ny.us/