When I take on a new client there is a significant amount of uncharged work required. Things like preparation of the engagement letter, a meeting to run through the letter and sign it, setting up client details on PM systems, agent authorisations, setting up Sage/Quickbooks etc, chasing money laundering documents, downloading Companies House info, chasing previous accountants for working papers. The list goes on.
It strikes me that, if all of this is explained to a client, charging a small one off setup fee is perfectly reasonable. I wouldn't envisage significant sums. Maybe £25 per sole trader and £50 for a limited company. Or perhaps 5-10% of the first year fee.
Has anyone actually tried this, and if so was there resistance from clients? Did it cost you a prospective new client?
To date. being a new practicioner (coming up to one year) I've been so pleased to actually take on a new client that I haven't thought about a setup fee as I don't want to do anything to scare them off. However the more I think about how much work is involved after agreeing terms I think it's reasonable to charge for this.
I'd be interested to hear anyone' experiences.
Thanks in advance