I'm a sole practitioner with a small practice which is rapidly growing. I have tried several approaches to managing the constant deadlines for my client base, but the thought to filing a set of accounts late (for example) is keeping me awake at night. In reality I have only filed accounts late on one occassion (the client provided everything at the last minute and despite completing the work on time I neglected to file on time due to a close family bereavement...I paid the fine for both clients).
I have looked into practice management software and created numerous spreadsheets to try and keep a clear view of everything that is going on but all of these seem to require more hours spent maintaining than I feel should be necessary. With my client base growing on a weekly basis this is becoming a real concern for me.
So, my question is......if you had one piece of advice or a tried and tested technique for managing deadlines, what would it be?
Also, I would be interested to know how many other sole practitioners have filed late for their clients. Just to be reassured that it is not just me!
Thanks in advance for your help!
Sir Digby
Replies (9)
Please login or register to join the discussion.
One piece of advice?
Don't accept responsibility!
Build into your letter of engagement what you consider to be a reasonable length of time after the year-end or tax year for your client to supply full information. Records supplied after would not be guaranteed to be filed within time limits. Offer discounts for early supply of records (or penalties for late, whichever you think will do the trick).
Perhaps we are all a little guilty of concentrating on filing deadlines rather than (what's the earliest opportunity called?) filing live-lines. A change of mindset may be required.
Finally, why should you care more about the deadlines than your client? Try not to assume their responsibility on your shoulders.
Carrot or stick
I know that some accountants charge a premium for records delivered late but we give a 10% discount to any client that gives us their records within 5 months of their year end. It is the same thing at the end of the day, but I think it looks better.
Where is time spent managing deadlines?
Sir Digby
I think the others have good points - to put the burden of responsibility onto your clients shoulders, at least help get some sleep! Also one positive way to push clients towards providing records in a timely manner too by offering a discount.
From your post I think the issue may extend beyond the filing of accounts and getting records from clients but extend to managing deadlines of all client tasks you have.
One thing I'm curious about is that you do feel the options you have currently seen (Practice Management Software and Excel) are not efficient enough and it shouldn't be necessary the time these are requiring. This indicates to me that you may be able to see why these are taking longer than necessary.
What is it with Practice Management Software that takes longer than necessary? Is it loading times (if online), or the time involved in setting it up? Or possibly just the general use of it and if so what could be done within what you've looked at to change this?
Have you tried to use simple task managers such as those within Outlook, or Lightning (Thunderbird)? If so, how did you find those?
David Toohey
The Accountants Circle
Keep it simple.
You need, say 2 months, from receipt of books to filing of Return. You also make it clear that returns are NEVER filed until your invoice has been paid.
You make it clear that you are not responsible if clients records are late getting to you and you NEVER, EVER, pay the fines for them. If their returns are late due to a genuine reason, then tell HMRC and have the penalty cancelled. They will of course argue, so argue back. Stand your ground.
Outlook
As a relatively small sole practitioner, but growing, I just use outlook. It's not ideal but it's at no additional cost and enables me to keep a track of the deadlines and encourage people to get stuff to me. I suppose what might be different is that I set a reminder shortly after they would have the information and then I chase, i.e. for a company with a 31/10 year end, I would remind them in mid december that I need the stuff and arrange a timetable for getting it to me, usually early february to avoid the January rush. So I chase at the start of the process and by doing so, i seem to avoid the rush at the end of the deadline slot.
Turning the tables somewhat, I'm interested that you're talking about rapid growth. What has worked for you to get this good growth?
Sorry to bore you but here's my thoughts
I use Digita’s software and presently I don’t have their Time and Fees product but I plan to get it after 31 January 2010. Let’s see how good it is at dealing with deadlines. I felt their previous attempts had been too piecemeal with different programs doing different things so I have used a mixture of Outlook Tasks and Excel spreadsheets. It does take time with the Outlook reminders but once you seriously judge what work you can do in the next week and don’t end up changing the reminders every day then it is not too time consuming. I use the Categories as clients so I can review together all the Reminders for a client. With Excel I have different spreadsheets for individuals and companies. I have a spreadsheet for company accounts/tax with period ends and deadlines and another for annual returns with made up to dates and due dates. I have a spreadsheet for sole traders and partnerships with period end dates and another spreadsheet for self assessment taxpayers. I have a spreadsheet for VAT returns also. I don’t bother with a spreadsheet for payroll because I have an Outlook reminder and find that’s the most efficient way and try to do the majority in one session.
My spreadsheet splits my clients into the following categories and also had a column for short notes:
To do – not overdue
Chase – overdue soon
Waiting for answers
Chase – overdue
Chase – not overdue
Up to date
As you can see I have “Chase – overdue”. Some new clients come to you with missed deadlines or current clients simply refuse to cooperate. I don’t sack them. If they want to pay the penalties I’m not going to lose any sleep over it.
With the above system I can always insert a new section if I have a special need. I can sort parts of the spreadsheet on any column and move clients from section to section easily. My system highlights priorities compatible with how I work rather than me fitting in with a software program. It also means that i can concentrate on a few clients and not worry that I have overlooked something. Once a month I do a general review and plan the next month’s work priorities.
I’ve never been happy with offering discounts or increasing fees based on when I get the information. Neither am I happy with saying I needed information by a certain date or I won’t guarantee completing the work before the deadline.
My major failing was prioritising work around deadlines rather than when information was received. Clients would give me work at the last minute and I would do their work and not touch a timely client’s work until the late clients had been dealt with. I saw that this was something that I had to address.
I’ve worked really hard for the last couple of months and although there is still a lot of work to do before 31 January I feel much more relaxed than in previous years. The major improvement I have introduced is a column for “Info Rec’d”. I put the date in that column and now I work through clients with the earliest date first. Previously, I would choose whose work to do next based on various criteria. I’m sure sometimes it was who shouted the loudest. I had one client who came to me a year ago and I explained how difficult it is for an accountant getting a lot of information in the last month or two before 31 January when most of the information is available months previously. She assured me she would send me her information next April. A day or two before Christmas I received her information. On 4 January I got an email from her asking how I was getting on with her tax return! I told her that I am doing client work in strict order of receipt and I’m sure that she would understand how fair that is. Anybody who chases me gets the same response.
What I have realised is that most of my work doesn’t take very long – it’s simply my scheduling that is at fault. I now see clearly what will improve my efficiency:
1 Aim to complete work the day after the information is received – if it’s not possible only work on that until it’s done.
2 Chase clients at the earliest opportunity – ask for accounts data, P60s, P11Ds, yearly interest statements, property income, etc. as soon as clients should have received them.
3 Send emails regularly chasing for missing information.
4 Send regular newsletters which concentrate on practicalities – eg. what’s needed for dividend declarations, information on property income and expenses, deadlines, etc.
5 I think I need to improve my website and introduce better search engine optimisation.
I’m a sole practitioner (no staff) with around 200 clients. Many people have said that’s a lot of clients and I thought the only way to keep my head above water as the number of clients increased would be to go 100% paperless and invest in better software. I’m hoping to do that after 31 January. I’ve already got two 32” monitors on my desk – it’s an incredible aid to efficiency: use information on one monitor while working on the other monitor; cuts down on printing. Now I don’t see why I can’t double my client base without any problems.
Deadline Advise
What has worked for me is this: I get my clients to submit their information periodically and give a final deadline 2 months before the statutory deadline. I also charge extra £50 to £100 for lateness!!! This is normally agreed before engagement. If you help your clients plan better, your credibility level increases too.
Well, Good luck
Great management system!
I use salestrakr.com, a web based contact, task and sales management system. I find its brilliant for tracking what is due for which client and keeping on track. You can try a free demo of it at www.salestrakr.com and then a free 30 day trial. The support team are excellent too so you can get lots of help and stay on top of it really easily, unlike some of the practice management software. And I'm not even on commission - should be!