Hoping everyone is fine and surviving the heat.
After seven years being in practice;I am currently reviewing my current fee structure (by the way have not done fee review ever) and the way I invoice my clients. I had a huge bad debt of over 9K just in last year. It impacted me to a great extent not only financially but also psychologically.
Therefore, I have decided on few things one is to review my current fee structure and second to choose most efficient and effective invoicing model. I have done the necessary research on the fee side but need some help in evaluating different models used by other peers. I contacted few of my contacts and was surprised to find a real-mix in their approaches.
A- Charging per month (with no upfront) 12 month contract and one month notice afterwards + No Free Consultation + Letter of Engagement signed up in first meeting
B- Sends an invoice every month in advance and charges % of annual fee upfront to cover initial administration costs (their wording) 6 month term + early termination fee of up to £150 + one month notice after minimum term + 30 minute Free Consultation + Letter of Engagement sent within 7 days
C- Send an invoice for each service separately with payment terms 50% in advance and 50% due after works are completed but before submission of any work to HMRC/Companies House + 30 minute Chargeable Free Consultation + Letter of engagement sent in 14 days
I would like to find out how the AW members feel and think about this as it may help not only me but many others who may need some help.
Client Type - LTD
Fee - £1440 (assumption)
Services Required - Quarterly VAT Returns + Monthly Payroll + Secretarial Services + Year-End Accounts + CT600 + Self-Assessment of Director
A/R is 31/01 and VAT for PE 30.06 and SA for Sole Director (17/18) are outstanding.
How would you invoice this customer?
Appreciate your help for taking time to read this post and sharing your valuable thoughts.