Hi everyone, new here and feeling like I need a bit of support at the moment.
i have two clients at the moment as I'm part time and just starting up. I find my first client so straightforward, I enjoy the work and feel satisfied and confident. I'm in a good rhythm and flow with the workload. I'm really struggling with the other. He emails me at all times including after 7pm on weekends asking me to pay his sub contractors. Also asking how much money he had in in his accounts and if Mr"X" has paid yet. I feel like I'm getting nowhere and just fire fighting all the time. Some receipts are missing, some aren't an allowable expense. All his subcontractors are Eastern European which can be difficult when verifying them. He asked me to pay one of them on Friday night, told me just the net figure and said add on VAT, no invoice was given and told me he was setup as a bill payment on the account and verified with HMRC. I paid the subcontractor as requested on Saturday morning and today have been told he hadn't received it. It's looking possible that I've sent it to the wrong payee but of the same name! There was only one option of this name on the payee list so I'm not sure what has happened.
I'm aware that I have learnt a valuable lesson here on making sure I have every detail before carrying out such transactions. I'm asking politely to not judge me on this, I'm still learning and my clients know this and pay a small hourly rate. I just struggle hugely with this work. It's all over the place! I don't get invoices from sub contractors just a text message here and there from my client, some receipts are missing and he seems to think I'm his PA.
I'm not sure how to get him on the straight and narrow, an error was bound to happen. He's so slap dash and I have naively been at his bec and call, all hours. Im feeling physically sick with the implications of this incorrect payment and know this a wake up call for me to put in strict procedures.
-- Edited by Katelouc on Wednesday 17th of September 2014 08:57:55 PM
-- Edited by Katelouc on Wednesday 17th of September 2014 08:58:23 PM
Although you have only 2 clients and it may be difficult to do this double his fee.
If he wont pay then say that unfortunately that the job is not cost effective at the rate you are charging so wish him all the best.
If he does accept then say thats fine but put conditions on such as "any processing needs to be in by 12pm to be processed the same day. If after 12pm it will be processed the next working day ie only Monday to Friday.
Sounds like more bother than its worth and free up your time will mean you can find clients who will appreciate your help.
Hi Kate on reading this my first thoughts were similar to Mark's, in fact even before you said you only charge out at a small amount I was sure you were under charging. The problem is that the worst clients will always go to the cheapest bookkeepers/accountants (That's not to say you won't get good clients too) and there will always be a cheaper person out there so they won't show you any loyalty. The fact that you feel so bad about this error (and if there are two people with the same name then it isn't your error) tells me you give added value and no doubt go the extra mile. Work out how much money you need to compensate you for this job and don't forget all the hassle he is bringing you when you calculate this. Now you might be happy with £15 per hour or you may want £50 per hour to make it worthwhile, but my advice would be to tell him you can't do his work for a penny less and as Mark says lay out your parameters for work. You will probably lose the client but my guess is that you will be happy to do so. We've all had these types and none of us need them unless they are happy to pay for all the inconvenience they bring.
If you had a few other clients as well you wouldn't have the time to be at his bec and call, he sounds like a demanding pain in the bum and I personally wouldn't tolerate him even at high fees. It is hard letting go but you will find others round the corner who are better and more organised. Another way is to tell him that he has to make all his own payments to his subbys, what did he do before you came on board? It is probably paying you a cheap rate because you want the experience, in my opinion I have been there and got the t-shirt and never again will I do it.
Even if you did set out your perameters he will still break them so not really worth having him in the first place. Its not your fault you paid the wrong one if there are 2 with the same name, if he insists on you paying then you should ask for a spread sheet of all the hours pay and persons details and also their bank details, don't pay them just on his say so, get him to fill out a weekly sheet and say that you do the payrun on Friday morning if you haven't got the information by Friday at 9am then it won't be done at all for that week and he will either have to do it himself or they will have to wait till the following week.
DO NOT work saturdays for him he will just take the P*** out of you.
Personally walk away!!!
I have recently told a client that I can't work for them at the last minute as its always a rush and end up working a weekend, so due to other working commitments and I was going to cull them, but they are now behaving and doing what they are told so I am keeping them.
HTH
PS get ruthless it feels so good!!!!
-- Edited by Amanda on Friday 19th of September 2014 09:21:19 AM
-- Edited by Amanda on Friday 19th of September 2014 09:22:27 AM
Ditto what the others say. Tell him you are charging triple time for anything after 5pm but that cannot guarantee you will do it if you are not around in the first place. Be blunt cos I will bet you anything he will have heard the bluntness before. At least then if you do end up keeping him for a little while longer, you will earn more! But be strict, lay out the ground rules EVERY time he tries to break them, confirm stuff in writing especially if he isnt doing something he should (covers you and he cant throw it back at you) and charge him for every second you do anything. Best way to get the message across is not be there next time he emails you on a Friday night!
I have a customer that texts me/emails me at 4am - he is my best customer, but its not that he wants me to act then, rather when he is up and about and remembering to tell me about something!!
Ask your good customer if they know anyone that can use your services (always the best way to get more business), then when you have one or two more, dump this one from a great height!
Oh and the 'lost' Bank transfer - dont worry. His problem if only one payee set up and if he is still dealing with that person then he should be able to ask them for it back. Dont let him bully you about it!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
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