Client owes me $$

[JohnH]

Take time off

I don't know who said it, but it was on this forum. In a previous discussion on non-paying clients, someone replied that "If I'm not going to get paid, I'd just as soon take the time off." I loved that comment and it's become my new collections mantra.

(I tried a search but couldn't come up with the thread - whoever said that please step up & take credit for it...)

[August @ ADG Financial]

I get all the fee before the work is completed. I tell the client this going in. In June I had a 3 year problem the fee was $1,050. I did one year at a time. He paid for one year at a time when he had the next $350. for the next year we did the next year. Quite honestly it's the only way. We want to help, we want the work and in our eagerness we get hurt. Take it from experience.
Yesterday, I had a new client. Got a $808. refund. Comes down to payment no check! I said well I can't put it in until I get payment. We went back and forth for about 15 minutes. I have to pick up my brother, my checks are at home and I don't get paid until Friday. I said she might miss the 24th efile drop date if it didn't go in today. Long story short after 15 minutes she goes down the street to the ATM and gets the $115. It's the only way to run our businesses. We do about 500 returns and in 2007 on April 15th we were left with only 2 outstanding invoices. Take my advise ask for the money. It's a little uncomfortable at first but you won't be fustrated later. August

[erchess]

I would think

that there should be a way for you to get in line with his other unsecured creditors for whatever good that does. You might have to hire a lawyer but I would think you might be able to add the fee to his balance and deduct as a business expense any part of the fee that you could consider was not reimbursed. Of course if he is sufficiently broke the unsecured creditors will get nothing and even if he has to do a wage earner plan the money will be slow coming in and you may not get all of it. Then again maybe you don't want to bother.

[geekgirldany]

I get half up front on anything over $100 and those with multiple year returns. If they don't pay no return. I know it is hard with family and friends. I had my great aunt tell me to never do business with anyone who is family or who is a close friend. I have stuck to that. My brother wanted me to help him awhile back with setting up QuickBooks and I told him I would not. That it was best to get someone else. I am thinking about taking credit cards this year. QuickBooks has pretty good pricing. This will allow those that say they don't have the money to put it on their credit card.

I think if your customer claims bankruptcy you can't go after him for the money. If it was me I would really be ashamed to come back and expect you to do my tax return after having not paid for previous invoices.

[DTS]

Kj

That is part of the reason for my post. A new season is here, I know what's coming and I'm not inclined to do any more for him until he's paid in full, but feel I am in between a rock and a hard place because of our families' history. That is not to excuse what's taken place.

I was wondering if you would mind sharing what you feel an adequate retainer would be in this situation? I may consider this, but will not get caught like this again. There will be an new understanding, assuming I get a retainer, that nothing will be handed over until he's current with his billing.

Your thoughts?

Thanks,

Dennis

[KJ Judd]

Dennis,

I feel for you. I believe this is what is called a "learning experience". I had one awhile back. Now I require a retainer from all clients with delinquent tax accounts. Although I currently have a couple of clients in financial straits who have not paid me for last year's return.

[DTS]

I have a client that called last night to tell me that he may or may not go into bancruptcy.

I've known this fellow since he was a small kid, and up to now, extremely responsible. At our meeting to hand over work and get my fees, which totaled $1,100, I got this story how strapped he was and what bad financial shape he was in. At that moment, I thought "here we go!" I was trying to be understanding and at the same time, knew I had been taken advantage of.

I told him that I would invoice him each month and he could pay me in three payments and that I would be fine with that. He agreed to that. That was November and not one dime!

My question is, if he goes into bancruptcy, is there a way for me to recover my fees or will I just have to kiss it goodbye?

I never put myself in this position and sure feel like such a sucker now.

Sorry for the long post. I am venting, but do need to know how to cover this, if possible.

Thank you,

Dennis