fyi - don't make my mistake

[fliszt]

Even though I’m 65, I’m still learning. Client (since 1998) left my home-office last evening in a bit of a snuff. The initial 1-1/2 hr appointment was to look over wife’s s/s income but client brought a 2 page list of assets for me to review. Told him I charge for this service and he said he knew that. Preparation of their 2007 and 2008 tax planning forecast took me a little over 1-1/2hrs which included an Excel spreadsheet. I also supplied a lot of info on home-office, Sched C deductions for what he intends to do now that he’s retired. Last night’s appointment was 2 hrs. They gathered all of the papers and started to leave. I told them I charge $125/hr but their bill is only $150 for my time. They started shooting some tiny barbs. She: “we better not continue to talk too much, since we are being billed for the time”; He: “Well, my consultation is free”. I then said sorry folks, but this is how I make my living.
So, to avoid hurts, advise your clients ahead of time that you do charge, and also throw in some dollar ranges.

[DTS]

Fees

Larry,

Don't let these people get you down. When and if they walked into my office the next time, I would make certain their sarcastic remarks were not appreciated and would not be tolerated!

Consultations usually are free, but 2 hours of work are not and they know this. For them, I smell a price increase!

Dennis

[fliszt]

Thanks DTS

Thanks Dennis for the nice words. Are you the friend of Sandy T's, that she always talks so kindly about? No, those folks last night are nice people. I think it's just that they we not expecting that much of a charge. I don't know, but maybe they were expecting a charge less than what I charged for their tax return: $138.00. I'm now interested in knowing if other preparers do not charge for consultations. I don't charge for telephone consultations, but do charge when an "appointment" is made. During tax season, I don't charge for first 1/2 hour (and even when it's over an hour a little bit) or for the meeting in which we go through the tax return (which may take an hour or so). Perhaps I need to change my price list to exclude fees for consultations. Or, how long do consultations go before there is a charge?
All of my clients are nice, thoughtful and courteous. If not, I no longer have them back the following year. (unlike what I had to do in my younger years). I enjoy the relationships with all even if it is for a short amount of time. I'm looking forward to communicating with you too.

[DTS]

Consultations

Larry,

Yes, I am the "kind" one Sandy refers to, I think??? Did she mention good-looking, also?

I do not charge anyone to talk, even if I'm a tad busy. Sometimes a very, very modest fee just to let them know I work for money like they do. If they are returning customers, I will help them out anyway I can. New customers are the same, as I figure they will be back if they like my services. Many times in the past, however, I've been disappointed thinking like this.

Story from last season:

I had a husband and wife that had been clients of mine for many years, even in my other business before I started preparing taxes. Sort of grew up together from the age of 20. This year, the husband had me doing these projections like you were doing for your clients. Countless emails, phone calls, etc. I can't even begin to tell you the hours I spent working for this couple...all free. My payment was the statement, "we appreciate this so much".

About the beginning of March, I emailed them to let them know I was quite busy and thought it would be a good idea if they would let me set an appointment for them. Heard nothing. About the beginning of April he calls me to tell me they had decided to go to a financial planner where they offered the return free as part of the package. I could tell by his voice, he felt like a big rat and I felt like I had been led around by the nose and taken advantage of. I will NOT let this happen again.

Anyway, sorry for the long post. It's Labor Day weekend and it's slow! Anytime you want to chat about this or that, leave me a private message at the top of the page and I'll be in touch quickly.

Dennis

[Unregistered]

Larry M.
Did you get your money for consultation?

[Jiggers]

Clients you love to hate

When I had my securities license and was trying to get started handling H D Vest stuff, which is another story, I spent a lot of time with several clients during tax season. This took valuable time away from tax returns. Never again. None made any investments, one even took my work to another broker and made his investments there. I got no commission or pay for my time. I gave that part of my business up.

I used to have people call when I was starting out, asking "just a simple question", and I helped them out thinking I would do their final return. Nothing. Nevera again.

I helped a client when he caught his partner stealing. I did some research, many hours of work, and he balked at my fee. Never again.

New clients, especially those with delinquent returns, pay up front and premium prices. Even those recommended by my good clients.

I lose more clients after audits, even those with no change, because they balk at my fee. They think the audit is part of their annual tax fee. Yeah, right!

You learn by experience.

Trust no one. Not even family.

[fliszt]

Guest/Jiggers

Yes I did receive a check for my work. It's setting on my desk. I'm in no hurry to cash it and in fact not sure if I will. These folks have about $800k in liquid assets. So, they are not hurting, but they are very, very conservative. Which is fine. My father was also conservative about their money and died very wealthy. BUT my father believed strongly, that everyone should be paid FAIRLY. So, that's the way some conservatives are. And DTS, sorry to hear your sad story. Jiggers, I have posted private msg to you previously but still unread. I’m not sure if I am doing things on this board correctly – still learning. Let me know if you did not receive the msg.
For all: We must operate our business in good faith. We will be taken advantage of by some, but by and large, most clients will treat us as we treat them, but not always. Last year I cut a client's tax bill in half since they were border line bankrupt. (I've been there!!) This year they didn't show up. Nuts. They were really nice too. But, again, my existing clients are great. I do a lot of tax returns for single mothers, elderly, poor, and high school/college student gratis. I even paid out of my pocket, e-file fees by Intuit when we were being charged for that service. I don't care. I've had so much help all my life that I'll never be able to repay that debt. Even though I don't do it all the time, I try very hard to be fair, courteous and understanding to all. Sorry for the long post, but it's Sunday and I'm not in church where I need to be. Blessings to all and hope everyone enjoys this long weekend.
Larry
p.s. BTW, my email address is: LamDrDD@USFamily.net should anyone want to contact me directly.

[DTS]

Private messages

Larry,

If you want to leave a PM for someone, put your cursor over the name of the poster and click. That will bring up the option of leaving a PM for that person.

Give it a try.

Dennis

[JG EA]

Coffee instead of my fee.

I met a client in the coffee shop. He hadn't paid me yet for 2004 and didn't come back this year for 2005. I didn't even recognize him, but he apologized all over the place, promised to come into my office the next day and pay me more than he owed me because of all the trouble he caused. (The bills I sent him before I gave up.)

When I went to pay, I found out that he had paid for my coffee.

But, he didn't come in the next day or the next week or ever. Not yet anyway.

But at least I got something out of it.

[S T]

Well

JG,

At least the client felt bad enough to pick up your "coffee tab", but not enough to pay your bill.

Maybe you should invoice t/p again and continue the "guilt"!

I billed a potential business client after a few meetings and trying to set up his books, and payroll. He never responded, then about 2 years later, he sent me a check, apologizing all over the place and included about $75 extra for all the late charges. He actually overpaid his account.

Have I heard from him since the payment, NO, of course not!

Sandy

[Black Bart]

C.O.D. Usually

I had a truck driver come in once and I'd been doing his taxes for about five years. He owed me $100 for it. Said he "forgot his checkbook" -- I gave the return to him anyway. He said he'd go get it and come back to pay me. That was in 1984. I haven't seen him since. I guess he's still looking for it.

[Bees Knees]

When I went to pay, I found out that he had paid for my coffee.

But, he didn't come in the next day or the next week or ever. Not yet anyway.

But at least I got something out of it.

That reminds me of the cartoon where the IRS receives a letter from a taxpayer that says:

"Dear IRS,

I have been cheeting on my taxes. Now I can't sleep at nights. Enclosed is a check for $5,000. If I still can't sleep at night, I will send the rest."

[dyne]

clients who do not pay

I had a client who woke me up after I had gone to sleep to tell me that he would pay
me in a few days. He never did.
I have never had a non-paying client come back to me to have me prepare their tax
returns in a later year, so bad clients are automatically eliminated. They go to another
tax preparer. I have not had a non-paying client in years. This is a great forum!
Response to Bees Knees post: IRS has what is labled an Unidentified Account into which
money is deposited where the source of the funds is unknown or it is not clear what tax
year or type is involved. The amounts deposited into this account over the years
has to be staggering. They are not very concerned about why the tax is owed. If they
receive it, they keep it.

[Black Bart]

Now

that was funny, Bees!

I'll bet everybody here except maybe Armando, the DRLDIR (cain't cuss now, but he'll know what I mean) straight-arrow, can think of at least one thing (or maybe even two) for which he/she should send them a few anonymous dollars.