Hi
I have received an email this morning from one client:
One client who has not payed me. Can you advise me what to do?
I would be surprised if client believes that credit control is actually a basic service offered by most accountants in practice? Not sure, if anyone does offer such service?
Replies (10)
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You don't have to offer credit control. What you can do is advise the client how to chase a debt.
This is where you differentiate between being a form filler and a proper accountant.
I love questions like that myself.
Had one about an employee loan yesterday, 15 minutes of help and the client is delighted.
Totally agree, and its this type of advice that is valued by clients and ultimately keeps them with you
Its only going to take 5 minutes to respond to the client or give them call to explain what their options are for getting paid in this situation
Really these types of request are routine and anyone holding themselves out in practice should be able to answer them
I see both sides really.
I always offer advice and time for free.
If I had a client who contuinly fails to pay I'd be more reluctant to give my time freely.
However if this client has simply not paid his fee for this year, I can't see an issue providing advice.
I'd probably reply with:
Send statement
Ring them
Ring them again
Cease providing services/goods
Try a 'sausage factory debt collector/solicitor' letter (Thomas Higgins)
Moneyclaimonline (assuming it's not high value).
In that order.
If you wish to achieve 'trusted business adviser' status you should answer all such questions or be able to point the client in the right direction. The client doesn't actually seem to be asking you to chase the debt, but what they should do themselves.
The answer, if they have lots of clients, I would give is to install a chaser system, statement after normal payment date, then telephone call, then nice letter after so many days, etc etc until you get to a threat of legal proceedings.