Collecting Fees

[ILLMAS]

Hello, does anybody use their bank to collect client fees? This coming tax year I would like to use my bank ACH Collections to collect fees from clients that don't pay for their tax return when they pick them up, I spend too much time sending out statements, reminders and calling them. My bank offers ACH collections for $25 a month for 25 transactions and .25 cents for additional, now the only thing is how to notify my clients about this new payment plan. Most of my slow paying costumers file electronically, so I am thinking of them signing a paper giving me permission to electronically collect my fees the day thier direct deposit goes into thier account or not filing it electronically until the return is paid. I hate to do this to my clients but I need to pay to maintain an office, operating expenses and then I come last

If someone knows of an option with ATX to collect fees sooner, I would appreciated if you can let me know how to.

Thanks

[Catherine]

ATX has the "Fee Collect" which is now available without signing up to do RAL's. There's a $15 per-return fee, and I think it's only available on refund returns. I have a PayPall button on my web site, that people can use _without_ a PayPal account to pay me by credit card with only the PayPal fee (about 3%). All these fees are charged to me. Better to pay the fee than get stiffed -- but most of my late-payers owe (surprise!). My engagement letter says "Due on receipt" but of course people say "I forgot the checkbook". I've been lucky in that the tax folks who do that have always paid reasonably promptly (some of my accounting clients are a different story and I have other ways to deal with them). But if someone is too late, I will email them with a warning that in future no money = come back to pick up another time; I'm not releasing my work without payment. Easier said than done, I know.

Catherine

[Jack from Ohio]

I have used Fee Collect for 3 years now with great success. Those who forget their checkbook... "Well that is OK, because it seems that i have misplaced your file. If you want to run home and get your checkbook, I will find your file."

It seems harsh, but I instituted a Cash Up Front policy for people that I trusted, and they were very late paying me. The next year, I asked for payment before I started. That seemed to fix their memory problem. The thing is, I have about 150 personal clients, and only 5-6 ever do that kind of thing. Most have checkbook in hand when they pick up their return.

RANT OVER!!!

[kcjenkins]

Fee Collect is for those of us who do not do RALs. in fact, it's my understanding that you can not use it if you do RALs. But it costs only $15 per return, your fee comes out of their refund, directly into your bank, and is pretty simple. One limitation, you can not use it for a fee of more than $900, I think. The $15 dollars comes out of your fee, but I do not see any problem with your fee itself including a $15 process fee. :lol:

[JohnH]

Guess the $15 could just be added to the invoice as a "Fee Fee".

[Catherine]

Guess the $15 could just be added to the invoice as a "Fee Fee".

How about a special line item-- Fee: Fie Fo Fum, $15

;)