I would prefer my clients to pay by bank transfer as it is quicker and would save me time and fuel by not going to the bank. I am trying to convert my regulars by just asking if they would be able to do this first of all.
Then I was thinking if they are unable to do so would it be acceptable to have a charge for this, as for example energy companies charge for people paying by cheque. Or possibly I could offer a small discount for paying by bank transfer. Think my second option would make the client happier, and also save me the hassle. E.g. £1 off their monthly fee.
Just wondered if anyone did this, and are other people fed up with cheques.
I understand it is good for cash flow though!.
-- Edited by lor on Thursday 1st of December 2011 10:29:45 AM
I don't do this, but when I sign up new clients I tell them the payment method is by standing order. When we go through the service list and they sign it, the letter of engagement and they sign that and the standing order form and they sign that too. I take it all away and I post it to their bank.
For one off clients I offer payment methods of cheque, cash or bank transfer. I understand that cheques can cost to process, but I'd rather have the money by any method than not have it at all.
The energy companies get away with it because they are all doing it. How many bookkeepers do you know that charge extra for settling accounts by cheque. If a client uses bank transfers then they are likely to be paying most suppliers that way anyway. Some people will only use bank transfers when they have to (for VAT).
You could offer a percentage discount if they settled their account by standing order. This would work better with fixed prices.
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Never buy black socks from a normal shop. They shaft you every time.
Agreed that you need to make it easy for cients. It's also worth emphasising to clients that persist with cheques that their bank will charge them too, if they run a business bank account. I have a couple of clients who are strictly cash and I had an envelope through my letterbox full of cash earlier! I also will take payment by any means but do try to discourage people from giving me cheques.
This client seemed quite confused when I mentioned online banking so the envelopes of cash work for him and for me. It's great when I get home from a tough day and find one lying on the doormat. Somehow more satisfying than the online banking payments straight into my business account.
