Clients and Fees

Bren1609

This has been touched on before in other threads, If anyone here is working in practice or is self employed (accountant) you've probably encountered this at some stage.

In my experience, clients always have an issue about paying accounts/audit fees. They just don't see any value in the work being done and will invariably try and negotiate the price down.

Can anyone here share their thoughts or experience or on this?

The CCAinsider

There was some research done a few years ago in the UK and they found that more clients left a practice because they had died than because of fees. The biggest reason for a client leaving was quality of service. The fees only became an issue when the service was not up to scratch.

mkdon05

Ive come across this a bit.
There is always gonna be some moany funker that cant understand why there being charged so much.
Hint to all those people: If you keep clear and concise records it doesn't take the accountant half a year to chase you for explanations to every cheque stub that is blank/unreadable.
Usually these are the clients that cant explain why 10K was taken out of the bank account 10months ago! (Funny that they went on holiday to America about 10 months ago)
This is turning into a bit of a rant, i'll stop now.

MartMax

may not be as simple as this. all fees and job related issues should be well explained in letter of engagement. same with quality control. ensure client understand and read with care what they are signing into.

a practical term on fee is by issuing interim fees. for example, 1st payment on engagement, 2nd on commencing of the job and final payment on presentation. the least at every stage some time spent will be recovered.

i think it is a nice way to say at final stage, "no cheque no signed report and you could go somewhere else, bye!"

Marty

Andrea B.

As a self-employed tradesperson I work to an hourly rate and the client is always aware of that rate beforehand and the max hours that a particular job might run to and an agreement that any over-run for unforeseens will be highlighted beforehand.

I just don't have issues with payment relating to quality of work done and the time spent on the job. Certainly, I do not get some jobs because some people think I am too expensive.

I have colleagues who have issues with payments because they don't detail costs to clients beforehand, or they underpriced the job.

Among certain professionals such as medical, legal and accountancy, I feel that there has been an "old school" inherited attitude to fees, that if at all possible, payment and fees are not discussed and that it might be deemed rude to discuss costs. I know that that is the way my parents are and many in that generation treated those professions.

With so many of us nowadays been self-employed and running businesses (compliantly) we are aware of costs and want to know exactly what we are being charged for and what potential and worst case charges are going to be. We also want to know how we can reduce those charges.

If it was not for this attitude amongst most people, all solicitors would still for example be attempting to charge the previously unquestioned percentage of transaction for property conveyancy as opposed to the fixed-price solicitors which so many of the public are now using.

In my experience, clients always have an issue about paying accounts/audit fees.

To the OP, it may well be a case that you are unlucky with your clients understanding of fees but may it also be a fact that clients have not been fully briefed as to fees, and for example what an audit entails and what it might cost?