Getting paid for expertise.
WHY IT IS DIFFICULT
The service is delivered before payment, and its value is less visible once the problem is solved.
WHAT TO ESTABLISH
Payment terms, in the engagement letter, agreed in advance.
WHAT TO CONSIDER
Payment on account before work begins Interim billing Payment before a deliverable is released, where appropriate
WHY PAYMENT ON ACCOUNT
It tests commitment and funds the work.
WHAT TO ESTABLISH ABOUT OVERDUE ACCOUNTS
A process, applied consistently.
WHY CONSISTENTLY
Selective chasing teaches clients who can delay.
WHAT THE PROCESS SHOULD BE
Prompt reminder when due Personal contact shortly after Escalation to the relationship holder A decision point
WHY PERSONAL CONTACT
Most non-payment is administrative or reflects a concern not raised.
WHAT TO ASK
Whether there is a problem with the work.
WHY
Unspoken dissatisfaction is a common cause of non-payment.
WHAT TO DO ABOUT CONTINUING WORK FOR NON-PAYING CLIENTS
Establish a limit.
WHY
Continuing increases the loss, and it is the commonest error.
WHAT TO ESTABLISH ABOUT CEASING WORK
What your professional rules permit.
WHY
Withdrawing from an engagement is regulated and it may not be permitted at a critical moment.
WHAT TO ESTABLISH
Whether you may retain documents pending payment.
WHY
Rules on this vary and are strict.
WHAT TO TRACK
Debtor days Amounts by age Write-offs
WHAT TO REVIEW
Clients who repeatedly pay late.
