Ethics Question

[delaney]

Hi,
I got a referral from a client. New client and I exchange emails about my services, fees etc. Never mentions prior accountant. I take a part time per diem job. Just received the clients information and it turns out that the prior accountant is the firm I am working for per diem.

I never told the client that I worked for a firm, he never told me the name of his prior accountant. The per diem firm knows that I do have my own business.

Can I take this client on? Do I need to notify the firm I work for?

Thanks

[Acownt4it]

I would absolutely tell the client. When in doubt, disclose.

[delaney]

so you would tell the client....i agree. what about the firm I work per diem for?

[Acownt4it]

Yes

I would tell the firm also. It would not be good for your or business if they found out from anyone other than you.

[JohnH]

I'd start with the client, since he's the one you need to protect. Why not tell the client that you can only take on the work if he gives you permission to disclose the relationship to the other firm? This covers all the bases. If he says no, then there's no problem. If he says yes, then you're free to tell the firm.

[ChEAr$]

Well now,

I just don't see any conflict atall. New client came to you with no strings attached,
nor the fact that you do some work for his previous tax preparer carries no strings.

I wouldn't say anything to anybody, not even to client.

[JohnH]

Harlan:
Interesting question, isn't it?
It may be more of a marketing question than an ethics question. While it is true that he really doesn't owe any explanation to anyone, someone over on the ATX forum brought up another point to ponder. If the CPA firm ever accidentally finds out that the client has moved over to delaney, they might just assume he somehow raided the client. Even if that isn't true, their suspicions would be aroused.

So he has to consider whether this new client is worth potentially losing the relationship with the CPA firm. If it came to light, he might be able to explain it to their satisfaction, but the old adage in the sales business is "Any time you're explaining yourself, you're backing up."

[ChEAr$]

one way

Harlan:
Interesting question, isn't it?
It may be more of a marketing question than an ethics question. While it is true that he really doesn't owe any explanation to anyone, someone over on the ATX forum brought up another point to ponder. If the CPA firm ever accidentally finds out that the client has moved over to delaney, they might just assume he somehow raided the client. Even if that isn't true, their suspicions would be aroused.

So he has to consider whether this new client is worth potentially losing the relationship with the CPA firm. If it came to light, he might be able to explain it to their satisfaction, but the old adage in the sales business is "Any time you're explaining yourself, you're backing up."

if he thought that new employer, cpa firm, might find out and take umbrage at some future date, is to go ahead now and inform them of the facts, but withhold identify of the new client.

[Snaggletooth]

Let It Go

I should be scourged in the public square for turning down business with you guys.

But I would let this one go. I would tell the client I have a conflict of interest.

I do think the people paying me are due some loyalty so long as they are paying me. Any situation which presents a dichotemy of allegiance means I must choose one or the other.

Yes, I know this is 2009, and today's employers have no loyalty or scruples. That doesn't mean that we shouldn't have any. But, to be realistic, loyalty to an employer should only extend as far as the next paycheck.

So long as I plan to continue cashing their paychecks, I would not work against them.