Hello, I have signed up to Xero partner program. I have one new client who will begin to use Xero and I was also attracted with free access to my own Xero account. The partner program means that I'll be billed monthly for the client's I sign up to Xero and I must re-bill this to client's - I won't be offering discount / free. However, it has struck me that as a non-VAT registered sole-practicioner I will be doing my VAT registered client's a disservice as they won't be able to re-claim the VAT and I'll be billing them the gross price. So my price for Xero becomes 20% higher than the advertised price. At this stage I'm not planning to share the discount.
So, should I simply let each client sign-up individually and borrow their login credentials to access their data?
If that's the route I must go down then as far as Xero are concerned I'll be on their partner program but I'll not introduce a single client.
I'm attracted to the idea of using Xero for my own practice's books yet - is this at risk? Will they kick me off the partner program?
I'm worried to explain the situation to them directly.
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If they are VAT registered (and not on FRS) then you may need to charge the advertised price (I don't know the level of discount since I am not a partner so don't know if this would work). I assume that as you get more clients the discount increases and so there is more in it for you.
I am set up as an adviser for my Xero clients and they contract directly with Xero (there was a good offer around recently too).
I am a FreeAgent partner and not VAT registered, I pass on the discount and even my non-FRS VAT registered clients achieve a benefit. However I do not have to pass on the discount since clients do not know how much I pay. I probably wouldn't pass on any additional discounts should more clients sign up.
I don't see any reason why you can't be a partner and have your own books on Xero, clients can still appoint you as an adviser, their choice surely.
15%
The discount is 15% from 2 clients upwards so doesn't quit coven the VAT.
My main concern is if they'd cancel my partner status, and therefore my free account, if all my clients signed up themselves and not via me?
Xero have made Zero profits
so you should be the one calling the cards
another large cash outflow in Qtr 6/15, customer receipts eaten up by staff costs and marketing, maybe they should call in Bob Harper with beard for some "value added"
Most of my clients sign up personally
... And they haven't kicked me out yet. Xero actually get more money if the clients sign up personally, so I don't suppose they care too much.
Just get your clients to send a link to you with "adviser" privileges and you will be fine.
You can add the clients card details via your account and the invoice goes direct to them so no vat issues.
Sounds like the perfect solution...
You can add the clients card details via your account and the invoice goes direct to them so no vat issues.
Sounds like the perfect solution but are you sure that I can do this if I sign-up the client as a Xero Partner? Will the Xero VAT invoice be billed to the client company name? I suppose this way the client would receive the discount in full which is fine by me, especially in comparison with the alternative - I charge the client the gross price on which they can't reclaim VAT.
During sign-up I was told that the user agreement means that I agree to pay for client's monthly fees then re-charge to my client's if I so wish.
And, Paul - I was also told verbally that the 15% discount applies from 2 client's upwards.
I've only got one client for whom I pay
I am registered for VAT, as is the client.
I have about 6 other clients on Xero at present and I would want to bill them for the cost of me paying for them. The 15% discount isn't enough to make them want to sign up through me, so I will only encourage startups or people moving to xero to sign up with me until the unlikely day when I have many more Xero clients and can get a bigger discount.
I use Xero for my own accounts.
I bet there are lots of other accountants in exactly the same situation. Xero have always been clear about my situation and it's better for them if I'm an advocate than if I'm not.
Agree
There are lots of firms who get clients to sign up but reconsider when they can start getting the discount. I too had thought this was at 2 clients but Xero's partner rewards page says you don't get 15% discount till you reach 5?
https://www.xero.com/uk/partners/partner-program/rewards/
I'm getting 15% with 3 clients so am probably missing something?
As a general point, because of the high cost, my Xero clients are the only ones who have the costs directly recharged to them.
.
Its a PIA if you are on flat rate VAT too. I have some we pay and recharge, but for all new accounts I have them pay direct and cut me out of the loop. Not least as there is always the risk of getting left with the bill if they go pop.
I think this is the way I'll go
Its a PIA if you are on flat rate VAT too. I have some we pay and recharge, but for all new accounts I have them pay direct and cut me out of the loop. Not least as there is always the risk of getting left with the bill if they go pop.
I think this is the way I'll go. I reckon that along the way I sign up a few via my partner account (non-VAT reg'd / those on FRS). Otherwise, I'll have them sign up themselves.
Thanks all for the input.
Not for profit?
charge them what you are charged
Would you bill your staff out at cost price?
Talk to your account manager
As far as I am aware Xero recognises clients who sign up themselves as being in your quota if they invite you as their accountant. You see them all under MyXero. No reason not to discuss this with your Xero account manager.
At the moment Xero are offering 50% discount for 6 months so in the short term at least it is better value for clients if they sign up themselves.
@practigepartner
dont agree with your analogy , you dont bill them for your rent / rates etc . Anyway I dont bill by time . the strategy to mark up everything is not one i like at all . Many accountants are so mean they wont use efficient software if they can get free poor performing software elsewhere and others insist on marking everything up; if clients knew they would be [***] off to see that they were paying a cost on top of the software and for your time. Perhaps you should write to them all and let them know how you deal with disbursements. this reminds me of one of the partners in a now medium sized firm who used to bill clients an extra fiver for sending them a facsimile, pure profiteering
@carnmores
I agree that marking up the published cost price of cloud software as a separate charge is not a good idea, but I don't have a problem with businesses not passing on what amounts to a trade discount. For example, we all know that we pay garages labour to service our cars and a mark up on the parts they fit.
Not sure where you are coming from with your suggestions that many accountants are "mean" though. Like many of their clients they look for value for money. I am so mean that I use HMRC online rather than commercial software for my SA clients, because it does exactly what I want it to do, for free.
I quite like your suggestion about writing to clients to let them know how we deal with disbursements. How much do you think I ought to charge them for doing so?
i think your last sentence just about sums you up
i also use HMRC SA software for most of my clients because its good , if you re read what i said #poor performing software ie HMRC corporation tax software. and yet again another flawed analogy you own the car parts but do you own the client data on a cloud accounting program , what happens if your client leaves what processes do you have to ensure they can take it with them?