Do your customers pay it forward?
I wasn’t going to do a tax post, but something unprecedented and rather special happened this week.
One of my newest clients asked if she could pay me a chunk of change now for work I’ll do next year.
After deliberating for several nanoseconds, I agreed.
I like this deal very much.
Your customers may too.
Why would they pay in advance?
To claim you as an expense this financial year.
It seems some clients are real people, just like us.
I pay all my claimable bills by 30 June, even if they’re not due for weeks. I’ve seen this tactic described in every tax-tip article I’ve read.
It makes sense for my clients to do this too.
Of course, not everyone does it. Some accounts payable systems (and people) can’t (or won’t) exceed glacial speed for any reason.
But those who do get a handy tax break.
My client’s pay-it-forward idea is an elegant extension of this principle.
She’s working on a long, complicated article which she plans to let me whack into shape.
As she knows she’ll be using me, why not claim me now?
If you have regular customers, or know they’ll be using you next year, you could float this idea (naturally emphasising the benefit to them).
If I were a cad, I could make off with my client’s cash and live the high life in Koo Wee Rup – perhaps tormenting her with tart postcards.
Alternatively, she could accost me when I’m elbow-deep in another client’s website and demand that I drop what I’m doing to serve her.
The thing is (and please don’t laugh) we trust each other: we’ll conclude this deal when it’s mutually convenient.
When I sought her permission to write this post she said:
You may want to mention there’s a high level of trust, I wouldn’t do this with every man and his dog.
Also I got the idea because several years ago someone called and asked if they could send me a payment of $5K upfront for some marketing help.
I had no idea who this person was but someone had recommended me! It’s a good way to give yourself a kick up the butt to get work done ASAP.
I heartily concur.
For all you know, some of your customers may be awash with funds, teetering on the threshold of a higher tax rate and desperate to pay something (anything!) forward.
I know that some corporate budgets, if not fully spent, reduce subsequent allocations.
As many managers are petrified of diminished funding, this could be your in.
Maybe you already have.
- Have you?
- Will you?
- Why not?
- Couldn’t you use the loot?!
I see a bright future, adorned with your comments.
Ideally sooner, rather than later.
But better late than never.
Paul Hassing, Founder & Senior Writer, The Feisty Empire