Accountancy fees direct debit

[unixman]

'Afternoon. I recently received an ultimatum from my account saying I must set up a direct debit to pay their monthly fee or be punished with a £5 fine every month. Been with them 3 years any never made a late payment (perhaps a few days once or twice).

As I see it, DD is not appropriate for a business to business relationship. I would not dream of asking a client to pay me by DD. For the record I would also not threaten them with "fines" or issue them with ultimatums generally. Who knows what other "fines" my accounts might come up with, and help themselves to, if I put a DD in place.

Is this normal ? What say you?

[Kenny@MyAccountantFriend]

No it is not normal but I know which company is doing this now.

[TheCoconutDog]

'

Is this normal ? What say you?

I've paid my accountant by Direct Debit for over 20 years.

[jmo21]

Would you prefer to pay their annual fee up front?

Allowing you to pay it monthly is a curtousy they are giving you. Paying by direct debit is to make sure they don't have to chase stragglers every month.

Is it that big a deal?

[cojak]

I pay by standing order. Don't they do that?

(Oh, and being a few days late 'once or twice' means that you HAVE been a late payer in the past.)

[unixman]

Would you prefer to pay their annual fee up front?

Allowing you to pay it monthly is a curtousy they are giving you. Paying by direct debit is to make sure they don't have to chase stragglers every month.

Is it that big a deal?

My post was only three quarters serious, but I must say monthly payments are common throughout industry and part of business, not a "courtesy". It would be absurd to speak of paying in advance for a year of accountancy service, or any service.

And they are not "allowing me to pay", they are taking the money. That is what a direct debit is. I offered to set up an automated payment, but they declined.

[unixman]

I've paid my accountant by Direct Debit for over 20 years.

This is a place holder for my sweaty rant about hearts of oak, merrie England, the Magna Carta... etc. etc.

[unixman]

It didn't help that their ultimatum was headed

URGENT: IMMEDIATE ACTION REQUIRED

in red, 20 point text. Immediate action was required mainly because they sent the ultimatum so late, leaving only 7 days for arrangements to be made.

[Alan @ BroomeAffinity]

Why isn't dd appropriate for a b2b relationship? We pay most of our costs by dd - insurance, rent, phone, software. Even my VAT and CT is paid by dd.

Seems odd that they are insisting but I guess it simplifies things if they have everything the same.

[SueEllen]

It didn't help that their ultimatum was headed

URGENT: IMMEDIATE ACTION REQUIRED

in red, 20 point text. Immediate action was required mainly because they sent the ultimatum so late, leaving only 7 days for arrangements to be made.

Then change accountants AND set up a monthly standing order.

Set the standing order up to arrive 2 business days BEFORE it is due. That way on months with bank holidays the accountant doesn't worry about you being a day or two late.

BTW it only takes logging into your business bank account to set up the direct debit.