Morning rant but I got revenge

[kpangelinan]

Everyone will think I'm crazy but I let seveal people do this every year. Some are same ones years after year. Most leave me a check that I cash when their refund comes in. Of course I always know whent that happens, E-file with DD. Others don't even have checks so they come back with cash after refund comes. I've never not been paid yet. Also have customers from afar and they mail my payment after I file return. Again never not gotten paid.

Years ago I was working as a CPA at a small firm. The firm had a client that racked up $500 a month in fees but never paid or was way behind. This went on for years and years. I asked the founder why this is going on. He said that the staff was already here, that the client was used to train people and for slow times and someday may even pay.

More years go by, I buy the firm, still doing the bokkeeping for the client but more in contact with client about payment of past due and current fees.

On December 24 one year, client walks in and hands me a check for $24,500! for all the past work.
I ran to the bank and the check cleared. Kept the client and he always paid.

The same firm and founder had another client that owed $120,000. The client eventually paid every cent.

These are great stories. I'm sure we all have great feel good stories to tell, but my guess and my own experience says that it's the minority. There has been far more non-paying stories than the one's described where they promise to pay and eventually come in and the relationship is solid again.

Except for the person who has never "not' been paid. If you have a large practice, then more power to you....I didn't think it was possible to never have a non-paying client.

[JohnH]

I'd suggest that anyone who has never had a non-paying client is missing out on some business. A too-restrictive credit policy can also be detrimental to good business practice. Plus, there's the issue of compassion when the circumstances warrant it- each situation is unique and requires discernment.

Of course, if someone has no non-paying clients and at the same time they have all the work they can possibly handle, then they're very fortunate. Especialy in the current economic environment.

[kpangelinan]

I'd suggest that anyone who has never had a non-paying client is missing out on some business. A too-restrictive credit policy can also be detrimental to good business practice. Plus, there's the issue of compassion when the circumstances warrant it- each situation is unique and requires discernment.

Of course, if someone has no non-paying clients and at the same time they have all the work they can possibly handle, then they're very fortunate. Especialy in the current economic environment.

This is a good point....I agree.

I also was told from a trustworthy business man that if you aren't receiving a certain amount of complaints (10%) on prices, you're not charging enough....a little different subject than non-payers, but thought I'd throw that out as well.