Debts of clients for bookkeeping services - The Book-keepers Forum (UK)

rigaconnect · Member

Debts of clients for bookkeeping services

Donna CBK · Senior Member

Happy new year to you.
I offer most clients a 7 day payment terms - if they do not pay within the 7 days work is placed on hold until invoice is cleared. The same rule applies even if there is a deadline ie VAT return or payroll. All clients are credit checked and if the check isnt too impressive (or consistent slow payer) I have started to ask for a deposit.

This is all stipulated in the Letter of Engagement.

Hope helps

rigaconnect · Member

Thanks. You, too, Happy new year!
Yes, helped. Thank you for information. Seems I need to reconsider my policy for relations with clients and my work:) Until now I was very busy. Had very little time to control how my invoices are paid. Need to work a bit less and control my invoice payments.

kjmcculloch83 · Expert

I put most of my clients on standing orders which helps with payments.

Kris

fabs79 · Senior Member

Like Kris I also try to get clients to pay by standing order to avoid delays. I ask my clients to sign a standing order mandate when they sign up for my services and then I forward it to their bank.
However if the clients want to be difficult they have plenty of room to do so. If they have internet banking they can cancel a standing order at a click of the mouse...so there is no way to 'force' a client to pay in time.

Like Donna mentioned in the post above I also put the account on hold until the arrears have been settled in full. If VAT Returns or other deadlines are involved then the client is going to have a problem...so basically pay me what is due or else...

Don't you love being in business? biggrin

Fabs

rigaconnect · Member

fabs79 wrote:

Don't you love being in business?

If the question is for me, that on average I like what I am doing:) But there are many circumstances, that makes the business not so enjoyable.

1) Delays in payments

2) Examination of tax authorities (and in most cases examinations happens for companies, that do not pay in time)

3) Debts of clients before tax authorities (some small business owners earn money (they have money), but they simply do not pay taxes)

4) Many questions from tax authorities (that takes time to answer and also it makes a bit nervous)

5) Attempts of some companies to reduce taxes in not very legal way (that makes problems to accountant)

6) Overload of work

I do not know how it is in UK, but in country where I am working, above mentioned ocurs more and more ...

So I start to compare bookkeeping and accounting. And conclusion is that doing bookkeeping it is possible to avoid many of above mentioned problems

kjmcculloch83 · Expert

I wonder if it might have been a rhetorical question? I can imagine how some of the points you outline could be annoying. However, I'd never complain about number 6.

Kris

fabs79 · Senior Member

It was indeed....

And long live #6 !!!

Amanda · Expert

Yes I can echo long live number 6, although I was hoping for a les busier new year but theres no let up, anyway not at least for the next few months. I would actually like a day off at some point!

This is where the question comes in do I sub work out to cope??? This is a whole new thread so I won't hijack this one!!!