How many of your require a deposit up front?

[AZ-Tax]

We tax preparers have enough going on to worry about whether or not we get paid. I have tossed around the idea of taking a deposit and even discussed it with my clients now for a couple yrs. All were in favor but my major obstacle I have is having to have my client issue me 2 checks. If I accepted CC and/or debit cards, then I would probably go that route. I had a couple new clients offer to pay me up front the entire amt and very displeased (I try not to use the "h" word) with myself for not accepting for even after I get into the tax return and there is more work then I first thought, I probably could get extra fee from the client. I like most of you on this board, quote my fees in a range. I personally would like to see a $100 min deposit standard in our profession.

[Matt Sova]

How to get paid

You should do two things:
1. Electronically file 100% of all eligible tax returns.
2. Do not ELF the return unless you have the signed 8879 AND payment for your bill.

I have had clients ask if they can pay after they get their refund. I have them write me a check from the account where the refund is going and I hang onto it until the deposit date of the refund.

ELF all of my retunrs has substantially reduced my collection issues on 1040's.

[ChEAr$]

I would never insult a client, new or otherwise, by requiring a deposit.

Now representation clients are different. (grin)

[kpangelinan]

Agreed...

I would never insult a client, new or otherwise, by requiring a deposit.

Now representation clients are different. (grin)

For tax prep clients, I never require a deposit......I used to in the beginning when I was accepting new clients, but slow or no pay clients are fired from my practice these days.

I had a client mail me his stuff with a check for $X and I estimated his return to be $XX so I had my secretary call him and let him know that his so called payment for my services wasn't going to be enough. When he gave me the ok, I did them and charged him the balance. If he refused, I would have sent his stuff back in the mail along with his small check.

For audit or collection representation, I always receive a retainer and have never had a problem with clients on that.

[taxmandan]

Multi-year non-filers have to pay a retainer up front, usually two years estimated fees, and representation clients pay up-front too. But regular tax return clients don't pay up front. They do pay or make arrangement prior to getting a copy of the returns and efiling occurs. Only prior year clients get to leave a post dated check for cashing when their refund is deposited in their bank. Accepting credit cards and post-dated checks, I've never had a problem with non-payment.

[Uncle Sam]

[QUOTE=AZ-Tax;119223]but my major obstacle I have is having to have my client issue me 2 checks.

Why is that an obstacle?

[ChEAr$]

KP, I used to have a client who when mailing his "stuff" would also enclose a check, dated, payable, and signed. All I had to do was fill in the amount.

[kpangelinan]

Sweet!

KP, I used to have a client who when mailing his "stuff" would also enclose a check, dated, payable, and signed. All I had to do was fill in the amount.

Holy cow!!! Nice. Sounds like you have a great relationship with this client.