Discussion:Pissed off client and I want to ask others

He comes to me today; wants his stuff back to get another opinion. He has only paid me 475.00 in 2 years and his outstanding bill is 1616.00. So for all the above for the year 2006, it would cost him a grand total of 2091.00. He said that amounts to almost 200.00 per month and he thinks this is robbery!! He offered me 500.00; told him to take his money, take his books and leave. He asked me "why do I need bookkeeping if I have bank statements that show I am spending the money I take in"???? For tax returns I say. He truly thinks that he can just say I took in 100K; spent 110K and so I am getting a refund....

He may find someone in this town to do his work...most likely not but do you think my fee was outrageous? Maybe it was so I am doing the "did I charge too much" routine....just want an opinion.

Remember, It is better to be pissed off than to be pissed on.

I had a client do the same thing to me with a tax return. A $500 tax return and this guy started complaining. Told him to pay me what he thought it was worth and then to go elsewhere the next year. He paid me $45.

This past year, a client was angry cause he took $30,000 out of his retirement account and he didn't like the fact that he was now in the 28% bracket plus the 10% penalty and all that good stuff. I gave his stuff back although I did not give him the completed return.

Cheerio

When I get one of those, "Let me settle the whole thing for $X," comments it means they are going somewhere else and its best to take the cash and cut your losses. One accountant I do some per diem work for also makes sure he sends a 1099-C in January.

I sure like flat fees and engagement letters. That way, I don't surprise them with a bill and they (usually) don't surprise me by not paying. Engagement letters are a must for monthly work. I put flat fees in the letter for monthly write up, income tax return prep, quarterly and annual PR tax forms, and an hourly fee for stuff like answering notices.

Learned the hard way not to let them get ahead of me. I'll carry about $500 on receivables, but after that, I let them know in writing that they have to pay in full before I'll do any more work for them. Haven't lost one yet.

Sometimes I get so caught up with work that I forget to send a bill at all!!!! GAH!

Sending happy thoughts to you13:28, 11 October 2007 (CDT)~remember this guy has just freed up some of your time to take care of the GOOD client(s) that are coming your way :)

I don't do write up work, because I don't find it satisfying and don't want that kind of a practice.

I do have a new refund policy on my tax returns: if you are not happy with anything (color of the paper, smell of my office, etc.) bring back all copies of the unfiled return and you will receive a 100% refund. (Obviously if I have already efiled the return the clients have accepted my work, but they do have time to question anything before that). I also give them a firm quote (your fee will be between $300 and $350 based on the information I see here. If you drop off anything requiring more work, I'll call you with a revised fee quote before I do any more work) up front so that there are no surprises.

You could turn this into a competitive advantage by advertising it:

We have a "no surprises" fee policy. You will know up front the range that your fee will be based on the information you provide. We will call before doing any more work if it looks like there will be any adjustment necessary because of additional information provided by you.

I really do like to be kissed when I am being scr***d so I didn't accept his offer.

Thanks again!

My one criticism is why did you keep working for him after the first couple of months if he didn't pay you? Your fee is certainly reasonable.

With tax work, we generally don't release draft documents. We'll discuss the issues & numbers with the client, but no paper until the final document. Since we efile, we hold the filing until we get paid. With unfamiliar clients, we don't release the documents until we're paid.

We've only written off a couple invoices in the past 15 years. Get the cash up front!!!

We also have a standard letter from Gear-Up that we use that get's peoples attention...we inform them that unless we're paid we'll inform the IRS that we're no longer a paid preparer. Makes people think about audit potential...

Jim

the great thing about e-filing as opposed to the paper return is, we have more leverage. We can advise client that we will release the return for e-file after we receive pymt in full.

Will

"better to be pissed off than pissed on and I like being kissed when I am being f***ed"...hehehehe. Go ahead and make fun....I feel better venting now :)