As we approach Q4, which is often a period of poor cash flow (2018/2019 were quite the opposite, but I am concerned about 2020), I am considering offering some sort of incentive for clients to prepay for 2021 services--specifically, tax services. Overall, I can predict what existing clients will pay year-over-year.
Rather than discount the services, I was thinking of offering "x" amount of credit for services to be rendered in 2021 or 2022 (if not used by then, the credit is forfeited). The amount of the credit would be based on a range of values of services--the more a client generally pays my firm, the greater the applicable credit.
Has anyone offered a prepayment incentive? What incentive was used and how well did it actually work? The intent would be to have them sign engagement letters this year for 2021 work and generate some cash for additional reserves "just in case."