Accounting for fixed fees

Accounting for fixed fees

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I am going to charge fixed fees payable by monthly standing order for the majority of my work.

I have spent quite a bit of time thinking about the best way to keep my records.

I intend to agree a fee with the client , get a standing order set up so that it is effectively paid by 12 instalments, and issue a monthly VAT invoices at the start of each month for all s/o payments due in the forthcoming month.

I'd very much appreciate comments on -

1. How others account for the fees and specifically keep track of WIP/agreed fees/increases?

2. What software people use to keep their records.
Nick

Replies (5)

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By AnonymousUser
28th Nov 2008 12:58

Paul Scholes-Fixed fees
Hi Paul,

I am working towards bringing in a fixed fee policy in my practice and will value being able to discuss some fears etc with you.

If you feel you have the time to assist please email me your email address to [email protected]

Any other contributions from other members who have gone down this route will be most welcome.

Regards

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By imain
27th Nov 2008 16:25

Gladly
James,

send me a note on [email protected] and I shall forward you some information.

Kind regards

Ian

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By jamesashburton
26th Nov 2008 17:53

3rd Party Provider
Ian,

I'd be grateful for details as I have a client who may well be interested.

James

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Teignmouth
By Paul Scholes
25th Nov 2008 00:56

Just render one invoice
Hi Nick - I render one invoice at the start of the billing year which is payable within the normal 30 days, however if clients prefer they can pay by up to 4 instalments covering a 10 month period (as suggested by Ian), ie end of billing month, then every 3rd month.

The benefit of this is only one piece of paper (or more usually PDF) pa per client rather than 12. As most of my cleints cash account for VAT there is no need to send them a VAT doc every time they pay.

As I render one bill I would need a consumer credit licence to offer more than 4 payments a year however as my terms are 30 days, if a client then asks if s/he can pay by 12 standing orders that's OK.

I looked into DDR arrangements and my bank told me that this was reserved for their larger customers and that it would cost too much to allow me to do it. I'd be interested to hear of others who have achieved this.

As my bill covers everything I am likely to do for the client in the year I have (at long last) done away with timesheets and I would strongly suggest you think of doing the same. Adding a sum to the compliance charges to cover all other contact in the year was relatively easy to do, based on the history of each client, and overall, you shouldn't lose out plus, more than anything, clients love it.

The whole quoting & payment terms agreement is handled by Iris practice management and the billing can be done by any accounting package. I use QuickBooks, which has an estimate stage to prep the bill with the quote so that the bill can be produced immediately the quote is agreed.

Hope that gives you some ideas.

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By imain
21st Nov 2008 20:26

Small suggestion
In the interests of giving you a running chance of renegotiating next years fee (hopefully upwards) it may make sense to have your 12 months services paid by 10 installments with a new standing order agreement signed in month 11/12 for next year. Otherwise you may have a challenge achieving any increase is a payment plan is in perpetuity.

Even better consider direct debit, your bank can provide this service or I can introduce you to a 3rd party drect debit provider if interested.

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