Does anyone currently use this system of payment for their client? Just chased up a lead that I got last year (small shop not happy with his accountant but had already given his books to him for SA prep, asked me to call back in June to take over). Discovered that his accountant has now got him in an advance payment plan
He liked the idea of paying the bill off, and signed up to the sales patter, but the thing is, I would have done him a better deal. He has given 10-11 accounts over to the accountant, and has agreed to sign over to me, but realisically I won't see any money from this until next financial year. Have been thinking about implementing this system of advance payments for myself, does anyone recommend?
We do monthly standing order, which allows the client to spread the cost. For, say, a March y/e, we would perhaps expect to do the work in June-August period, so would start the arrangement from January. Client pays some in advance, some in arrears. Seems fair.
However, if you can them to pay you the full amount in advance, go for it!
I have quite a few clients paying on the same basis as Nick describes. It's easier for them to budget for it, saves me chasing up late payers and evens out my income. Winning system all round if you ask me!
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
Absolutely; I insist on standing order for all monthly related tasks (bookkeeping, CIS returns, payroll etc.) and offer it to final accounts only customers as an option. Surprising how many people take it up. Even some of my SA clients have taken it up too. Well worth doing.
I think it's a great idea, but I'm having a nightmare at the moment with the time it takes banks to set up the Standing Order. Perhaps I'm doing something wrong.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Just thought I would mention that if you are taking monthly payments for one invoice, to spread the costs, you cannot take more than 4 payments without a credit license.
However, if you are just taking monthly payments for the work done that month (like a phone bill does) then it is fine.
