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Accountancy Fee

I promise a client that I will charge a fixed fee for his work.However after doing the work,I feel that I charge that I should charge more as there was more work involve than expected.Can anyone advice me on my next course of action.Thank you

Greg

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By admin
20th Apr 2002 18:37

Honour Your Word
The error was your own, in promising a fixed fee. Learn from the experience, You need to decide if this client is important to you as the client may think you are pulling a fast-one and decide to take his business elsewhere.
Invoice him for the agreed amount and be clear about any future charges and your fee structure including a paragraph discribing additional fees and where they may be applicable - this should cover you for any unexpected workloads or expenses.

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By admin
18th Apr 2002 18:55

Make a summary of the issues you have had to deal with which wer
It is important that you remain transparent in your dealings with your clients. The fact that you did promimise this client a fix fee does not mean that where there is a reasonable, proveable evidence to justify an increase in fee;you should not do so. I will suggest that you prepare a synopsis of the further work you have done and/or difficulties/delays experienced on the job and arrange a meeting with client to discuss it.If your evidence has substance, they should be amen'able to your request for extra fee.
Having said that, for future period you should always avoid making such an unqualified promise of a fix fee without commiting the client to certain degree of responsibilities.This can be better done through a client service letter signed by the client which basically defines their expectation and responsibilities and your understanding thereof.This letter normally clarifies positions from the on set and ensures better client service management.
Your normal engagement letter will not cover this type of issue in your day to day dealings with the client.

Best of luck!

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18th Apr 2002 23:18

oh dear!
none of this puts much faith to myself, a member of the general public. applies to solicitors as well quite often.

not helped that there is a published and obviously contested list of solicitors firms as to which is the most money making.

in the script of the list, there are two references to the 'legal industry'.

take-overs, mergers, the term 'fee earners' always in the press repels many from taking good legal advice. same, often with accountancy firms.

astronomically expensive fleet street offices etc., which cannot be afforded by any other 'industry' frightens the more everyday client from sound legal and accountancy council. council.

thoughts 'from the high street'!

but, i will say that the promotion of 'make a will week' is something gives a better impresion.

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18th Apr 2002 23:25

tescos
actually rather looking forward to see tesos' legal services.

what about accountancy services.

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18th Apr 2002 18:54

Greg - certainly not!

Greg,

My honest opinion is that you should never break your promise. Your word should be your bond irrespective of whether you make a loss or not. the client will understand it and may compensate you in kind!

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By neileg
18th Apr 2002 15:21

Course of action
1) Put your kicking boots on and then kick yourself firmly in the bum.
2) Raise the bill to the client in the sum you agreed.
3) Decide whether you have a future as a practicing accountant if you can't get your fee assessments right.

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By Anonymous
18th Apr 2002 15:29

Terms of Engagement
Tell them the promise was based on costs necessarilly incurred in the normal course of duty and not outwith your terms of engagement. Then list to them the work undertaken outwith the scope of the engagement.

If they're reasonable they'll pay up.

If the promise was verbal and neither side can prove a contract existed a small claims court would/could decide the issue. If you use a Solicitor at all in this matter make sure they are not the only ones to gain out of thre Dispute. It is easy to represent yourself at a small claims court.

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By KenKLM
18th Apr 2002 16:22

Fixed is fixed
If you indicated a fixed fee then you should be honourable enough to stick to it . If you do not you will probably lose this client . I would think you then need to indicate next year's fixed fee and itemise the work it covers enabling you to charge for "extras" and indiacte the rate chargeable per hour .

Stop belly aching and do the right thing .

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