I'm having troubles with a long-standing client, and would appreciate any 'outsiders' view of the situation please!
I've done the bookkeeping for this guy for about 4 years now. He tries hard, but is not a great businessman. He is so kind that both suppliers and customers give him the run around, and take advantage of his good nature. His debtors always run to tens of thousands, but he won't allow me to chase most of his customers, as 'they are having hard times' or 'she's just lost her job, so will pay me when she can'. Subsequently his cash flow is awful. Things are now reaching a critical point, but he won't act. (He owes HMRC for VAT and Corp Tax, Rent, Rates from 12/13 and this year, plus small values to other creditors. His bank is on the brink of calling in his overdraft.) A few months ago I had to threaten to stop work, as 3 months of my invoices had built up, and I was really concerned that he was going under. He just sticks his head in the sand, and hopes that something will come along to help him.
Now his admin lady is leaving, and he's made no attempt to replace her. (I think he expects me to stand in, as when she asked if she should write up some procedures on her tasks, he asked her if I knew what to do!) Now I could probably muddle my way through the work, but I really don't want to, and my rate is more than an admin person would be. If he's struggling to pay me each month doing the books, how can he pay the extra if I take on this admin work?! I did say when I heard that she was leaving that I wouldn't be in a position to do more, but he doesn't seen to want to do anything about replacing her. Trouble is, he is such a nice guy, I don't want to drop him in it, by not helping. But then the other side of me thinks I am stupid for offering to help, as I'd be doing stuff I don't really like, and could be taking on other clients, who want proper bookkeeping doing! Also, if I start doing this other stuff for him, I expect he will just leave it, and have even less incentive to get in a proper admin person!
I would stand your ground and don't do it and then he will be forced to do it. If he doesn't get anyone in soon and just leaves it how does that effect your bookkeeping side of things? Will it mean that eventually you won't be able to do the bookkeeping as the rest of the paperwork is not up together?
By the sounds of things it will just be a matter of time before he goes bust anyway. HMRC and the bank will be on to him and if he can't pay his debts then I'm afraid he will be a gonna!
Sorry it's negative, could have had one just like this some time ago but I walked away, and guess what...............he's gone bust!
yes, defo do not do the admin....as you will find that you won't be able to get away from it again as he will just assume that you will do it every time... and once you start doing something it is harder to stop doing it. If he sorts himself out he may be able to save his business, what a shame, he needs to harsher with customers paying as it is business at the end of the day. Maybe email would be the best way if you don't like confrontation also sometimes it sinks in more to the person also if they read it.
Thanks for the replies. I think I knew I had to say no really...
Tried to see him when I visited the office earlier, but he wasn't about. (Avoiding me I think)
So I have just put together an email - kind I hope but direct and to the point, that he MUST sort the admin side out without me. If it falls too far behind, then it will have a knock on effect to me and preparing the regular accounts / VAT prep etc. He's a great guy, and in many ways I don't want to lose him, as he's so flexible over getting the work done, and visits etc, but it is reaching a crisis point I think. He was due to see the bank this week, but cancelled at the last minute .
Hi all,
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