Community Chat

[madzonie]

I'm in the process of writing a "goodbye" letter to our accountant. We have had a 25+ year professional relationship with him, so I'm trying to find the proper words in my letter. Now I'm wondering if I should call him with the news??

Years ago I did our taxes myself. Then we got a rental house and I didn't want to have to deal with depreciation, deductible expenses, etc. So we engaged his services after a referral. We always figured his fees were within the range of reasonable.

Ten years ago we retired and then 8 years ago sold our house in CA and moved to AZ. We continued our relationship with him via phone calls and mail.

The last couple years our taxes have become more and more simple - no more rental, not enough deductions to itemize, fewer forms and pages. Yet each year when we got our packet to prepare our return, the fees kept going up.

Last year out of curiosity I bought an online tax prep software program and ran all our stuff through it. I didn't file that return, but went ahead and sent our paperwork to the accountant for that year's filing.

When we got our completed returns back, along with a bill for $325, the numbers I had run through the software program came out right on the nose compared to what his figures were.

So this year I did our taxes again with the software and e-filed today. Now I need to let him know that, and tell him we no longer need his services.

Am I doing the right thing to send a friendly letter, briefly explaining our decision and then thanking him sincerely for the years of service? I wanted to put in a note about his escalating fees for our dwindling returns, but decided to leave that out.

[JustJazzmom]

But since escalating fees was a determining factor to not using him anymore; I would mention it (nicely of course)-- being on a fixed income unable to handle the increased fees something like that mention; it might lessen the blow to the accountant.

[mgm2]

It's a standard fee BUT your accountant should have at least recognized his long time clients and give you a substantial discount.

[sunshine45]

i would not say anything about the fees. i would just say that now since your life is much simpler and because you are no longer in the area that he is in, that you have now found a FREE service that you are 100% satisfied with. thank him for all of the time and effort he spent on your finances over the years and tell him that you will be happy to recommend clients to him if anyone asks for a cpa in that area.

[Mersha]

Since we are speaking of a business relationship, I would send the letter and also mention that due to the rising costs of the tax prep, you are going a different route this year and will no longer need his services.

I would thank him for all of the work that he has done over the years.

[occasionalrain]

Simply write that since you have retired and have sold your rental property, you no longer need his services. You can thank him if you like but really he should be thanking you.

[occasionalrain]

On 3/3/2014 Mersha said:

Since we are speaking of a business relationship, I would send the letter and also mention that due to the rising costs of the tax prep, you are going a different route this year and will no longer need his services.

I would thank him for all of the work that he has done over the years.

I don't see any point in mentioning fees unless you expect to continue using him and want him to offer a discount.

Unless there is a reason to include something it's better to leave it out.

[foundinlv]

madzonie.....I agree with occasional rain that it's not necessary to bring up his fee. Your circumstances have changed and you simply don't need him any more. He'll understand. Also, I'd just call him.

[Mersha]

On 3/3/2014 occasional rain said:

On 3/3/2014 Mersha said:

Since we are speaking of a business relationship, I would send the letter and also mention that due to the rising costs of the tax prep, you are going a different route this year and will no longer need his services.

I would thank him for all of the work that he has done over the years.

I don't see any point in mentioning fees unless you expect to continue using him and want him to offer a discount.

Unless there is a reason to include something it's better to leave it out.

Since the increase in fees is a large part of the OPs decision to sever ties with the accountant, I would certainly be inclined to mention it in the letter. She also indicated that she wanted to convey that fact at one point.

From a business perspective, I would think the accountant would appreciate knowing this.

[stilltamn8r]

Wow! I, too have had the same accountant for over 30 years-

Actually since my son was 1, so about 32 years.. I feel like I kind of grew up with this guy, now we are both old and have each been through divorces, so many "seasons and experiences" and have grandkids, etc

My taxes are not THAt complicated anymore, and last year his fee was close to $600!

I thought of doing what you did, seeing if I could, myself, do mine, but I just, for some reason, I CAN'T!

I can't bring myself to not have him, ..even at that cost, and if I DID leave him, I would NEVER say anything about the fees- (Actually, you're getting a pretty good deal) I have been through so much with him, it seems like a small price to pay..

I know it sounds weird, but that is just MY feeling- Of course a relationship by phone is different, but i would still NEVER mention the fee- If he lowered the fee would you still want to break away? you probably would, since you have found thou can do it yourself, so why mention it? He IS a professional and you ARE paying for his professional knowledge.. What if you were audited next year, wouldn't you want HIM, who is so familiar with you, to represent you?