Deposits from New Clients

monkeypuzzle47

I take on alot of new clients this time of year. It takes alot of my precious time, to take details, initial consultation, sending out letters of engagement etc. etc. I would say 20% of these clients fail to follow through and send in their accounts therefore, I am thinking to charge some sort of deposit up front, to deter this from happening. Does anyone do this sort of thing? If so what sort of amount should I charge etc. Im not entirely sure if I can do this.

Usually I do not charge the client until I have completed their accounts and then they have 30 days to pay. Sometimes they take advantage of 60 days!!

Advice appreciated. Thanks.

T.C.

I don't have any initial problems with clients. I don't take a deposit, but what I do is send out the paperwork for signing once everything is complete and ask for payment with the return of the signed documents. In that way I get my payment before the accounts and tax returns are finalised. It works for me, but it does depend on the type of client you are dealing with.

Monsoon

Bill monthly. As soon as they have signed the engagement letter, send them an invoice, and get them to pay by monthly standing order. The fees are non-refundable as you are acting for them every month, it's just some months you will have more to do than others.