Discussion:Help with pitching this client

My only previous client meeting was a disaster (I just started my firm in September). They wanted to form an S corp to feed and care for a part time electrical business making about $5,000 net income next year (forecasted)--YIKES. I did all of the work ahead of time and came in with a couple proposed courses of action that included me being paid as step 1. Instead, the lady of the house insisted on the S Corp and just wanted me to tell her (for free mind you) what she needed to file and when (taxes, forms, schedules, quarterlies). I ended the meeting abruptly when I realized her plan--having divulged no information--and felt quite foolish for having invested so much time on them in advance.

I look to avoid that this time.

I contacted a new 'business' from the County new business roles. The guy was more excited than I was because he called several other accountants and 'none would even call back'. I think I know why. He started an evangelist ministry and he is looking to file 501c3. I don't know much else beyond that until I meet with him tonight for my free consultation. Basically, for me this meeting is a personality check and an information gathering mission to help me devise a plan of action.

It has been my experience that the client expects you to listen to their situation and plan, and just bark out a plan of action (for free). However, this guy is particularly difficult as his existence lies in the grey areas. Setting up his corporation, submitting his 501c3 application properly, and maximizing his tax planning is very technical work that sometimes is lost on the non-Accountant clients. I will tell them that there are significant technical Accounting issues--both on the 'company' side and the minister's side--that require significant research and a retainer. I am thinking that $400 sounds right to me (estimated 7-10 hours total for the research and plan of action) but I am new at this.

Can someone with more experience than I give me a better idea of how to approach this or let me know if the retainer sounds about right? Clients here retainer and often think Accountant BONUS.

Thanks, Michael

DZCPA, thank you for the offer (although I am not sure exactly what the offer was just yet). I just happened to check my personal discussion page today and saw your post (sorry, I forgot to check it). So no offense meant and I wasn't ignoring you. I will get back with you but for the immediate future I am covered up with a very good client. Let me digest them and I will get back with you.

As an update, I signed them last evening and have several items that I am working on for them:

1) Startup plan. This essentially learns their business from the ground up, determines what their filing and compliance issues and requirements are, helps them install quickbooks (they were purely manual), gives them a little bookkeeping training tailored towards their business model, and provides some training on quickbooks. Since this is my first official client and a ministry, I am throwing in some free tax planning tips as warranted for free. I also provide a tax calendar tailored to their business that not only tells them due dates of required filings/remittances, but lead time for mailing and other gotcha's that pop up. This service has been wildly popular with prospective clients (in idea at least) because many plan to do their own bookkeeping and some of their own filing and find that no other Accountants will call them back after they learn how few fees will be billable. A nice little niche that I am marketing towards micro and small business owners who can handle the bookkeeping and transaction volume but want some help getting things started.

2) Tax return and quarterlies

3) Yearly payroll return form 944 and G-7 (they have very little payroll so they are yearly).

For a first official paying client, I couldn't have picked a better one. Evangelical ministry that sells CD's over the internet and during events with income from multiple states. The wife is on the payroll to take advantage of some section 105 NASE benefits. So no shortage of issues.

So far the client is outrageously happy with my depth and throughness...as my wife says "they aren't dying from Accountant neglect" ;-). Maybe it is a mistake but I am thinking long-term and instead of being about billing, I am about extreme amounts of TLC and customer service and being more of a business partner/consultant to the small business owner. It seems to be working because the owner keeps asking for more of my cards to hand out to friends and associates in the same ministry. I sense that I am going to be very busy in short order as tax season approaches. I would rather make a very good living but also have the satisfaction of being an invaluable asset to the client....that's my plan anyway. I am hitching my wagon to the customer service train and overlooking some fees others would charge for (I am, however, still a capitalist! :D) in hopes that my raving fan clients will bring others in. For my effort, I charge slightly higher than average fees.

Michael