Prepaid accountant ‘sold’ me to a new firm, new accountant says they were duped and I need to pay AGAIN for FYE26 as they didn’t get the funds.
I signed up with an accountant firm a few years ago. There were two guys, and they each split to set up their own companies. I stuck with one of them, signed and was pre-paying a monthly fee to cover my annual $2k bill (which also included filing my bi-monthly GST returns). I got an email from him last month saying he’s leaving the business as of ‘now’ and my accounts are being looked after by a new firm but all will remain business as usual at the same rate.
I got the rest of my files ready to process end of year, and now the new firm said that the old accountant has done a runner as far as his prepaid clients and even though they bought the clients/ business from him, he hasn’t handed over the $2k already paid. So for them to process my already paid for end of year return, we each need to try and agree to an amount as they can’t do the work for free.
The whole situation has been effed up. Especially as we only got notice a week after year end. I have paid $2k to have my accounts done and the new company are wanting me to essentially pay again.
Should them taking over the business accounts mean that they have the funds?
What can I do? How can I even find out if what they are saying is true and I am not just double paying.
I would have thought that they would need to honor the original terms and payments signed with the original guy seeing as they ‘bought me’ as a client.
I have no idea what to do, should this be on me or them?
Should they be just processing it as their stuff up for not getting all business funds in transaction?
Or is this on me to try and take one of them to disputes tribunal or something?
TLDR: Prepaid $2k for my end of year accounts, accountant sold business to another company with no notice and the new company says they haven’t received any payments for the clients like myself and that we need to ‘meet in the middle’ somehow payment-wise.