Accountant’s shock bill

Accountant’s shock late bill
Our chartered accountant invoices us each year for £2,000 or £3,000. This year he has sent us an invoice for £8,000 for work going back three years, with no previous warning. As we are a partnership we divide the profits regularly, and have not budgeted for this and are a small company and feel that it is unfair to be billed so late. On being challenged, our accountant has apologised and suggested we pay in installments. Do we have to pay this bill?
Assuming that this is purely a question of late charging rather than overcharging, your accountants have six years to claim money from you under the Limitation Act 1980 and so they are within their rights to demand payment as long as their charges are otherwise reasonable. But that is not the end of the matter.
The Institute of Chartered Accountants for England and Wales (ICAEW) has a code of ethics that all chartered accountants must comply with. The code does not cover late billing but it does say that if an invoice exceeds that which is normal by more than a reasonable amount, the accountant should provide a full and detailed explanation of the excess, and take steps to speedily resolve any dispute.
It is a good start that your accountant has apologised and agreed to be flexible with your repayments, but guidance from the ICAEW suggests that if the invoice is for work more than 12 months old, there may be questions to answer if you complain. The complaints process is free and user-friendly, so you may wish to consider this.
If you continue to instruct your present accountants, to avoid any future dispute on fees, ensure that the billing arrangements are confirmed in writing and include confirmation of estimates and future billing.