Ltd Co's fees

[msf]

Hi, a recent issue has arisen with my existing client...when i took over the client we agreed the fees to do the annual accounts at say £650 (this is below my set limit) because the volume/work justified that. The first year accounts fees billed and paid...no problem.

the current year financials have been completed and submitted....the turnover last year £49k, this year £15k. The client is argueing that because the turnover is low, this means work involved with accounts is less and the fee £650 is to high and is not prepared to pay this but at much reduced fees.

Has anyone else encountered this where the fees have been challenged on the basis of the clients turnover from year to year.....and what would be the best approach to this....i would appreciate any advice?

[deanshepherd]

I must admit I do not have this problem any more because all of my clients pay me in advance by monthly standing orders.

That way I retain the upper hand should my clients query on the level of fees.

In your circumstances I think you should explain to the client that the level of turnover has very little impact on the work that needs to be done to complete a set of accounts and that £650 is already at a discount.

If the client flat out refuses to pay then do not hesitate to ditch and sue. You do not need to waste any of your time on clients who do not appreciate your service.

I used to be reluctant to lose clients for the sake of a few hundred quid here and there on fees but nowadays I am a lot more choosy. I would rather spend my time helping the clients that appreciate my support and are willing to pay the going rate.

[msf]

Thankyou Dean,

I think i will look into the payment in advance ie standing order.
This has been a wake up call for me. I was disappointed that it came to this situation as i have spent a lot of time getting the accounts completed and all those exams, should be worth the fees!

I am meeting the client this week, to discuss and finalise the fees issue and then take it from there for future outcome.

thanks for the advice

[peugeot]

I would agree that £650 is very low for a Ltd set of accounts when you consider the additional work that has to go into them e.g. filing abbreviated accounts, statutory paperwork etc.

Some people want a Bentley for the price of a clapped out old Citroen! Unfortunately, though, a lot of clients do "try it on".