Are you giving your medical clients a Corona Discount?

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#21
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I am optimistic, but I'm also a realist.

I hope for the best, however I'm aware things could get much worse, as illustrated by Len in post #19. I think it's a good idea to bill something now, whatever the client can afford, instead of deferring everything. We have to assume some of these clients might be bankrupt in 2-3 months and not be able to afford to pay anything.

Most of my clients are well capitalized. However some own only single-family residential rentals. That is their niche. If their tenants stop paying and the mortgage company keeps collecting they might be in trouble.

50% now and 50% due July 15th seems to be equitable for both the client and I if the client is truly in dire straights.

Like dsocpa, I still have mortgage payments, payments for utilities, HOA dues, interest payments on loans, insurance, and grocery and essential costs. No one is cutting me a break there. Therefore, the solution must be equitable.
 

#22
ATSMAN  
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MA
Like dsocpa, I still have mortgage payments, payments for utilities, HOA dues, interest payments on loans, insurance, and grocery and essential costs. No one is cutting me a break there. Therefore, the solution must be equitable.


That is the response you give to an undeserving client when they demand a discount just because they feel they deserve a discount!
 

#23
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Northern MI and Coastal SC
ATSMAN wrote:I hate to say it this way, but from a natural law perspective Pandemics in the history of this planet have by course of natural selection eliminated the weak and the strong survived. I can still hear my high school teacher talking about Charles Darwin and the "Survival of the Fittest" theory.

It hurts when it is someone you love and care but laws of nature trump all that emotion. Just my two cents to keep things in perspective. :( :( :(


I hate to admit it, but I am always comparing my practices to others to make sure I remain on top during tough times, or as the industry evolves, younger people enter business, etc. Adapt or die, IMO, and I am always looking to evolve. It is part of the reason I am growing so rapidly compared to most firms in my area—I am not stuck in the traditional CPA firm rut. I am also very nicely postured to absorb clients of CPAs that retire or kick the bucket, because nearly all firms here are owned or managed by CPAs in their 60s and 70s. The next five years will be VERY interesting years for our industry where I live, and across much of the country.
 

#24
dsocpa  
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During the last reccession I had a few clients who never should have been running a business. A couple potential clients I turned away because after awhile you just know who's going to make it and who isn't. There were a couple that surprised me, but I totally agree with Atsman it's survival of the fittest.
And yes ManVsTax, no one is getting a payment plan unless A.) They have a good track record of paying over the last several years, B.) I know they are trying to move forward, applying for loans, etc. C.) Must pay by will owe past 7/15 (I'm even thinking 7/1).
 

#25
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dsocpa wrote:During the last reccession I had a few clients who never should have been running a business. A couple potential clients I turned away because after awhile you just know who's going to make it and who isn't.


One thing I learned early on in my career is that some people are business owners not because they have the ability to run a business, but because they have an inability to work for someone else.
 

#26
Wiles  
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CA
One thing I learned early on in my career is that some people are business owners not because they have the ability to run a business, but because they have an inability to work for someone else.

That is really good. If businesses had bumper stickers, this would go on ours.
 

#27
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Northern MI and Coastal SC
missingdonut wrote:One thing I learned early on in my career is that some people are business owners not because they have the ability to run a business, but because they have an inability to work for someone else.


Precisely why employers do not like hiring prospects with a history of self-employment.
 

#28
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CornerstoneCPA wrote:Precisely why employers do not like hiring prospects with a history of self-employment.


Meh... there's good and bad, like all things, and it's dangerous to overgeneralize. Some self-employed are effectively unemployable, but some can make great employees. Then again, a lot of employers complain that their employees don't have an entrepreneurial spirit... I wonder why :lol:

I'd put self-employed in a similar camp as former military; while some have issues adapting to a civilian workforce, most can make really effective employees.
 

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