I seem to have another client who wont pay. I don't know if its the area I live or its just a hazard of the job. Anyway, I have a client who I charge xxx for the monthly bookkeeping, paye and vat returns...no problem there.
But, I charge him a separate amount to prepare and file his accounts. I have already submitted them as he assured me he would pay and Im a nice (maybe stupid) person who didn't want him to receive a fine. Well, to date he hasn't paid me. What do I do, any suggestions?? I did think about stopping the bookkeeping side of things but as he is paying me monthly for that and isn't behind with his payments on that I don't know if I do that without getting into trouble??
Is the accounts work on a seperate engagement letter or simply a payment of additional services under a single agreement?
If the client is actually having some difficulty paying it might be worth suggesting that they pay you monthly for the annual work by increasing your monthly charge. I do that with a few clients and having a monthly outlay rather than a big bill at the end of the year seems to go down well.
Of course, doing that now means that they will be paying in arrears rather than you getting the money up front.
Just a suggestion and good luck getting your money,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Its listed as an additional service on my engagement letter...and yes he could pay. I did originally suggest he paid it monthly like the bookkeeping side of things but he agreed to pay in 2 instalments...which he hasn't.
What conversations / communications have you had about this? Has he actually stated that he does not intend to pay, or is he fobbing you off with excuses / promising to do it? Have you issued written reminders? It would seem a shame to suspend services if he is paying on time for those, but it might have to come to that, and I would let him know this.
Thanks for the help and advice. I can update you all now. He has paid but not all of it. I had to reduce my fee by 33% on order to get paid anything, it was either that or I could have been waiting another 6 months. So at the moment feeling pretty fed up .
It also got me thinking how you all charge. For instance, you take on a new client at the end of their year. How do you charge for the preparation of accounts? Most of mine wont pay a lump sum so they pay monthly by standing order. Fair enough, but that could mean you do their year end accounts and only have one or two months standing order amounts in your bank....What's stopping them from jumping ship once you've submitted them?
My standard terms are three months non returnable advance payment then monthly in arrears starting in month one... Even if I start on the 29th of the month!
So, for the general sorting out the mess left by the wife having a bash at being a bookkeeper on the kitchen table I know that I've got four months money... And its generally the hardest work that I do for the client so they certainly get more than their moneys worth.
Basically regard it as a bit of a loss leader. Occassionally takes a year of monthly payments to be ahead on my rate against hours worked for the client but getting the 4 months up front means that I can walk away with enough that it wasn't a complete waste of my time.
Clients don't seem to mind the three months but the first months payment often gets comment as it comes in the same month as the advance payment.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
