In a situation where a CPA is owed payment for services but the client disputes the amount charged, what is the CPA entitled to do?

In a situation where a CPA has provided services and is owed payment, but the client disputes the amount charged, the CPA is entitled to demand payment before providing any records related to the disputed services. This practice aligns with the ethical standards that govern CPAs, which allow them to protect their rightful interests while ensuring they are compensated for their work.

Demanding payment before furnishing records protects the CPA's financial interests and establishes that the records are in exchange for the payment due. This approach does not violate any ethical guidelines as long as the CPA is transparent with the client about the amount owed and the rationale behind the payment demand.

Furthermore, it emphasizes the importance of maintaining a professional relationship while also asserting the CPA's rights regarding compensation. Doing so can lead to a resolution of the dispute, as the client may reconsider their position when faced with the demand for payment in exchange for records.

Employing legal action or reporting the client to professional bodies might escalate the situation unnecessarily and could harm the CPA's professional reputation. Immediate provision of records without addressing the payment dispute would also put the CPA at a disadvantage, undermining their position in receiving due compensation.