In the past month or so I have taken on a couple of customers. Both got in touch with me, I visited them, we agreed prices and terms etc. Everything fine. I sent out my letters of engagement. One I havent done any work for yet and they have now cancelled our agreement. The second one I did 1 weeks payroll for which they returned the wage slips in the post to me with a letter saying they dont want to have the cost of a bookkeeper now.
This has really annoyed me after I took time out for both of these.
I know in future this could happen again but it still hacks you off !!
In the past I've experienced similar things so I looked at my engagement processes and improved selling skills to build value/commitment, a set-up fee, first meeting consultation fees, upfront payment, deposits and cancellation fees.
With Crunchers bookkeeping franchise I have a refundable application fee which helps us avoid wasting time with the wrong type of people.
I'd recommend you get a fee upfront which you could set against the first months bill.
I have no advice for you Beverley - I just wanted to say how gutted and annoyed I would be so I'm sorry that you have had these experiences. Keep your chin up, I am sure that there are some great clients out there who aren't going to waste your time and get your hopes up. I guess that most bookkeepers will experience this from time to time.
That is so annoying and also out of order. I would certainly charge for the payroll service that you gave, because you did indeed give it.
Many people will argue its just not worth the hassle but you have to stick to your principles and if they agreed in the first place and decided against it after you had processed the work, they need to pay for it.
If they don't pay, take them to court. Small claims is easy peasy nowadays. Afterall, would you want them as clients at a later date, probably not, and if they go around telling everyone that you take them to court for not paying fees, who looks the fool?
Hi Beverley, I am feeling a little annoyed at the moment due to a client being very slow at paying, and I am starting to wonder if I will get paid at all now.
This is my 1st experience of this type of client, my other clients are so quick to pay, thank god.
-- Edited by lor on Thursday 10th of December 2009 07:04:16 PM
I agree with Terri - it is something we will all probably come across unfortunately-doesn't make it any less annoying though! Not sure about up front fees though - don't think it's something i'll do at the moment. I've just received payment for a bad debt after threatening legal action - this was a one off job - so i would pursue the payroll fees.
chasing debts unfortunately is part of our profession and we should know who to do it for a client if necessary let alone ourselves.
if a client does not pay according to your credit terms, send them a nice reminder letter and then get more aggressive. if you do not get response from the first letter, make the next one the Final Demand, stating that if payment is not received within 7 days, further action may be taken. The if nothing, send them a court proceedings letter, informing them oyu now have no option but to take legal action against them, giving them 7 days. The use the small claims online service and move forward.
You will soon learn the tricks from court action, there are so many to delay payment etc but if you are persistant, it will reap rewards. I am currently chasing a debt for a client which is well over a year old, but slowly slowly I am getting funds in - better than showing a bad debt on the books and better for cashflow.
I feel if you are presistent then they will pay you, this is what i have done, concentrated on asking for the money at least every other day, now I have been paid. I wish you luck Beverly and you deserve to get paid.
