Accounting & Bookkeeping & Small Business Forum

[mrbill0626]

Hello all:

Do many of you bill clients by charging their credit card and/or by bank draft?
I am not finding it easy to get clients to agree to doing that. I have asked a long-time client (sent him an e-mail) about billiing him by bank draft and he has never replied. And I have not talked to him since asking him about it. Another client whom I just picked up I asked him in the initial interview about credit card or bank draft billing and he would not do it, because he said he doesn't have enough in the bank for a draft and doesn't want to use his credit card for that (although he does use it to pay other business expenses, like supplies, gas, etc.). So I'll send him a monthly bill.

But it would be so much easier to bill by cc or bank draft and the client would not have to worry about getting a bill from me and I wouldn't have to chase him down to get paid. But how can I get the client to accept this type of billing method?

Thanks

Bill

[Ahshucks]

You have to have it authorized in writing and signed by your client to legally use this method. I would suggest including it in your Engagement Letter:

RECURRING TRANSACTION PAYMENT AUTHORIZATION
Date: ____________________________
I _______________________________ authorize (Me) of (My Company) to charge my checking account starting on ____________________ and on the _______ of each month following through the end of the engagement for each month in the amount of $____________ for Accounting Services. My account information is as follows:
Bank Name: _______________________
ABA Rtg #: _______________________
Bank Acct Type: chkg, bus chkg, savings
Bank Acct #: ______________________
This payment authorization is valid and to remain in effect unless I, ______________, notify (My Company) of its cancellation by sending written notice.
Signature: _________________________
Name: ___________________________

[mrbill0626]

Ahshucks:

What would you suggest if the amount being billed varies each month or maybe some months the client doesn't get billed at all?

Thanks

Bill

[Ingmar]

mrbill0626 wrote: Ahshucks:

What would you suggest if the amount being billed varies each month or maybe some months the client doesn't get billed at all?

Thanks

Bill

I myself would not be happy with the payment opportunity you offer, especially when the bills tend to vary in amount and periods. If I was a client, and I did not have a set price agreed, then I would first like to see a bill before I paid it. I would also like the power over my own money, preventing that money would be paid for services that I did not recieve.

Major companies would not hesitate to pay through these kinds of systems, since (in 90% of the cases) they would have a price agreement. They would like it that there was a certain amount of money taken out of their bank-account or charged on their creditcards each month, and that they dident have to worry about it.

Smaller firms though, would like to have more control over there money themselves, especially in these economical days. They would rather see and review a bill first, making sure that their hard earned money would not be going anywhere it wasent supposed to go.

I myself would not make to big of a problem over it. If my client wanted me to send a bill first, then I would do that. I would respect the clients wishes, and try to keep the client. These days, it is hard enough to maintain a good oiled business as it is, and I would do everything I could (to a certain extend of course) to keep my clients happy.