As a firm of Accountants we prepare a few clients VAT Returns and PAYE. We normally look at the work involved and quote them a fixed fee/qtr. They post/bring in their Accounting Records qtrly and we hold the same at our office. After we have completed 4 quarters VAT rtns we finalise their Accounts. This saves them and us the time and cost of moving records to and fro.
However, it has become increasing fashionable for our clients to ring us when we are in the middle of other work to fax them this B Stat or that invoice, etc. They do not expect to be charged for this and if we advise them that we will have to charge them invariably advise us that it is 'cos the records are with us. Any explanation about problem of too much movement of AR fall to deaf ears.
We just wonder how other practitioners cope with this situation. Do U charge for this each time & get paid for this?
Any alternative suggestions will be appreciated.
Victor
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Replies (5)
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Reply from Leon
Victor
When I take on a client I ensure that they provide me the information in a prescribe format. For example purchase invoices are given to me in the front of a A4 folder and once posted onto Sage they are marked with the Nominal Code and filed behind in dividers under the relevant letter. With Cash businesses I use a 'Takings Sheet' I designed on a spreadsheet and 'Till rolls' etc are stapled to the paperwork and again once posted filed in A4 folder. Basically most clients want to be in control of thier paperwork, but do not know how to provide accountants that information. I see bookkeeping as a straight forward method of building working schedules to support the final accounts. So if I have an aspect enquiry for say R & R I can export from Sage to an excel spreadsheet a list of postings supporting the accounts and as my firm posted the information from the orignal invoices there is less chance of a capital expense being treated as a revenue one. Personally I pefer this method as this is a clean build of data rather a list of journals correcting someone else's postings. There is a danger that supporting documentation is lost, but because the turned around is quick this risk is reduced, compared to relying on clients providing you information covering a whole year. I hope this helps you - it is a tested method on publicians.
Varies client to client
We spell out to the clients what the fixed fee includes and that additional work will be charged, however we are flexible over charging re queries from the client - depending on how frequent and frustrating they are.
If the client's are 'difficult' re them not sending in complete records, then claiming to have done so, etc, we institute a comprehensive booking in policy - all records which are received are booked in within that day, and a fax of the booking in sheet, with notes of missing items is sent to the client, that way we both have a record which can be checked if queries arise. In these cases the clients are advised that the booking in system will take additional time/costs, but is necessary in view of the previous problems with missing records. A similar system could be used for returning records to the client.
As a final solution, if the problems still occur the job becomes too much 'hassle' then we try to persuade the client to do the bookkeeping in-house - either they do it themselves or employ a bookkeeper. In these circumstances we usually pick up some set-up and training work and continual review work re VAT returns, etc.
Clarification
Leon & Nicola
Thank you both for your kind suggestions.
Leon
In principle I can see where you are coming from. As you do a lot of BK work & return the documents back to them every month it keeps your office uncluttered and stops client from disturbing you unnecessarily. However, do you not find that too much paperwork leaves your office and clients and hence in the process some records are bound to be misplaced? Alternatively the client could turn around any advise you that you have some receipts for income/exp even though you have given all these back? What do you do then when you need the Accounts at y/e? Do you set yourself a deadline for completion of Accts within a certain specific time & once fee has been rec'd you give all the AR back straightaway?
Victor
Pricing
I do relate to your problem and undertstand where you are coming from.
Ultimately bookkeeping is just not very profitable for us accountants. It is low value work and doesnt add a huge amount of value to our services.
Personally I think the answer is to charge a sufficient fee to cover such work and not bill it separately.
The answer is a production line process
I have a number of pubs etc where there is a reasonable amount of paperwork. The arrangement I have is that each month the client drops the records - bank statements photocopied and the information is posted onto sage for collection seven days later - so the client knows when they will have thier records back - offering the a full accountancy service means that the accounts are straight forward to prepare - keeping the overall cost under control.
Lèon