I have just completed 3 months with a client and realise that I need to increase my fees (I did state in my letter of engagement that I would review my fees after 3 months) however upon pointing out that the number of invoices are double that initially anticipated and that the payroll constantly changes due to a high staff turnover, the client ask ask that I reduce my services instead of increasing my fee.
He ran a hotel previously and has suggested that I group invoices together by non vatable supplier and enter the total for the month as he did with the hotel. Can someone suggest a way to get over this problem, what is the minimum 'bookkeeping' that I can get away with without providing a shoddy service. Currently I maintain the purchase and sales ledger, prepare bank reconciliations, do the quarterly VAT return and monthly payroll for 10 ever changing staff members.
When reading your post, the first thing that came to mind is the fact that your client has such a high turnover of staff, particularly as you only have a maximum of 10 per month for payroll ! How many bookkeepers have they gone through I wonder ?
I think your client is being very ignorant as to the time and effort you have taken to bring their records up to date and obviously they wish to pay the minimum they can get away with. Unfortunately, you may have to ask yourself do you want to continue with this particular client and perhaps put this one down to experience ?
I assume that you take a look at a clients records, system etc., before agreeing a fee and starting work. If so, in addition to including a 3 month clause regarding a review of fees, add into this clause changes in the volumn / content of additional work.
For example, I would suggest that for new clients you review the work aspect after 1 month with the view to review fees accordingly if the volumn and content of work changes significantly. Then if all is well, reveiw on a 3 monthly period as you have been doing.
In respect of your current problem, ask yourself, how many hours have you spent on this client, and has the work being straightforward ?
If you continue with them, I think the service you are currently providing is sufficient.
I was asked to provide bookkeeping for a friend of a friend of a friend ! and when I had slogged my socks off for a number of weeks providing, in my opinion a first class service they whinged about the fee, which had already been agreed in a written letter of engagement. I did eventually get paid but I refused to carry on, as I did not want the constant battle every time I gave them an invoice. Since I walked away from that particular job, two other bookkeepers have had the same experience.
The client is a new start up coffee shop and I was engaged at the very beginning, the staff are all servers and cashiers. I have been their only bookkeeper.
I think for now I'll cut back on all the extras I do like returning their documents filed in an arch lever file and get their manager to do more of the initial sorting of documents and perhaps also the payroll which is online so I can keep an eye on it. However, if they grow much bigger I can see that I will have to drop this client if there is still no further funds forthcoming.
