My Week: 30% fees lost

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Namaste folks. I am glad it is Friday. It was a tough week without Q.

It is that time of the year  –  a week of cheesy Christmas adverts.  It satisfies my guilty pleasure. HERE are some of them.

I  think Marks and Spencer one wins it.

We are likely to see cheesy accountants Christmas videos on AW soon.  They are the worst.

Fee Bank 

I emailed my workings on the final fee bank payment to the vendor. If you remember,  I purchased a fee bank back in October 2016. I am awaiting a response from the vendor before making the bank transfer.

The integration of fee bank clients into the practice was challenging. It would have been far worse if the fee bank was significant. I purchased a small fee bank. The experience I gained will no doubt help in the future.

Viable fee bank?

30% of fees were lost as a result of fee bank clients leaving because:

  • Sacked – Fees and time did not match
  • Close business
  • No reason given

There is clawback for the unpaid portion of the fee for the year. However, where clients had paid fees up to x months, those fees were paid to the vendor. We did the work, but we did not get the return. This is where I messed up in allowing this clause in the agreement. Expensive lesson learnt.

Further, to kick me where it hurts – my bank balance, just after the full year, Three clients decided to leave. One closed business. the other (very small fee) just left without a giving a reason.  The last client gave some excuse that I do not recall. We paid the full years fees, did the work and clients left.  NOT good.

I do not have any regrets about my purchase decision.  I would do it again. Over the long term, I think the fee bank purchase will be a win with what is left.

Accountancy Manager (AM)

We are nearly there with our new practice engine (AM).  I think it would be a key resource that will help us significantly.  At the same time, through hard experience, I have learnt best not to make firm judgements about ANY software without at least a few months of real-life use.  To date, the positives about AM win.

Q’s Return

I am pleased Q is back next week. I coped without her. It was not easy. Now AM is set up, I will go through AM with her. On this occasion, she will HAVE to use AM. Too much time has gone in the setting up. I want us to use it in a big way. Further. I will also ask her to use timesheet functionality of AM.

Christmas Decorations

For the first time anywhere, I will put up light Chrismas decorations in our retail unit. Being on the main road, it would be rude not to.  I have ordered a made in China Santa from Amazon.  Jesus will be pleased.

About FirstTab

bike

Blogs about my week in a boutique practice. My independent channel: https://accountantblog.co.uk/

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12th Nov 2017 17:07

@FT - I inexplicably clicked on that link - I'm a little concerned at some of the web content you are viewing.

Thanks (2)
By mrme89
to Kent accountant
13th Nov 2017 09:08

I would have been more concerned had the website been Mumsnet!

Thanks (1)
to mrme89
13th Nov 2017 12:12

Ah Mumsnet...if you fancy wasting the next hour or so

https://www.mumsnet.com/features/15-legendary-threads

Thanks (2)
13th Nov 2017 16:17

Ouch FT.
A fee bank I looked at, the guy had been invoicing monthly and had been prepaid for most of the work.
He was wanting 50% up front then 2 payments of 25% at 12 month intervals.

When I pointed out that the fees in advance would need to be offset against the first up front payment I think it meant he would actually owe me.

He was suprised at this and had not even considered it and the agent had not mentioned it either.

So he decided he was just going to work another year after MTD was postponed as the sale was not going to produce him any cash really as he had been prepaid 80% of the money but was working well behind and filing everything on deadlines.

I guess the most valuable lessons learned are also the most costly.

Did you get your Solicitor to go over the paperwork as I imagine the prepaid part would be substantial.

With that and your new office you have an expensive year.

Thanks (3)