For most CPAs and tax preparers, the end of tax season brings a familiar, frustrating reality: the “collection tail.” While you’ve successfully navigated the latest tax code changes and met the April deadlines, a significant portion of your revenue remains locked in unpaid invoices.
The average cost for a simple 1040 with Schedule C is approximately $457, while corporate returns for S-Corps and Partnerships frequently start at $1,850. When these fees go unpaid, it isn’t just a nuisance; it’s a direct hit to your firm’s Days Sales Outstanding (DSO) and overall valuation. Statistics show that once an accounting invoice passes the 90-day mark, the probability of collecting it in full drops to roughly 69%.
However, the accounting industry faces a unique challenge. Unlike a traditional retailer, you cannot simply “repossess” a tax filing. You are bound by Treasury Circular 230, which mandates the prompt return of client records necessary for tax compliance, even if fees are unpaid. Furthermore, pursuing aggressive fee suits is cited by the AICPA as one of the leading triggers for defensive malpractice claims.
At NexaCollect, we provide a diplomatic, 50-state licensed solution that recovers your fees without triggering the “negligence” counterclaims that haunt firm partners.
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The 4-Step “Waterfall” for Financial Professionals
Accounting firms require a structured, low-friction recovery system. Our phased approach is designed to function as an extension of your billing department, not a “heavy-handed” debt collector.
Step 1: The “Audit” Reminder (Fixed Fee ~$15)
This is our most popular tier for CPAs. We send professional reminders in your firm’s name.
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The Strategy: It frames the unpaid balance as a simple administrative oversight or a “missing document” issue.
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The Benefit: You keep 100% of the recovery. Because the contact comes from you, it preserves the “Trusted Advisor” relationship while securing the cash.
Step 2: Formal Agency Transfer (Fixed Fee ~$15)
If the client ignores the internal nudge, the account transitions to NexaCollect’s name. This signals to the client that the professional engagement has reached a formal billing impasse. This step often resolves “procrastinator” debtors who wait until the last possible second to prioritize their CPA’s bill.
Step 3: Contingency Recovery (40%)
For the most stubborn “slow-pays,” our specialists engage in intensive, call-based negotiations. We operate on a “No Recovery, No Fee” basis.
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Tactical Advantage: We handle the “service dissatisfaction” excuses that accountants hate to deal with, allowing you to focus on high-value advisory work.
Step 4: Legal Review & Escalation
For high-balance corporate fees, we provide attorney-vetted escalation. This ensures that if litigation is necessary, it is handled with the highest level of legal scrutiny to prevent any blowback to your firm’s license or reputation.
Compliance as a Shield: Circular 230 & TCPA
Accountants are naturally risk-averse, and for good reason. A single TCPA (Telephone Consumer Protection Act) or FDCPA violation can cost thousands in fines.
NexaCollect is built on a foundation of Bulletproof Compliance:
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Circular 230 Literacy: We understand that while you can withhold “work products” (like a finished return you haven’t filed), you cannot withhold original client records. Our process ensures you stay on the right side of the Office of Professional Responsibility (OPR).
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Reputation Preservation: Our 4.85-star Google rating is the highest in the industry. We are often complimented by the debtors we collect from for our professionalism. This ensures your firm isn’t the subject of a 1-star review “revenge post.”
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Malpractice Avoidance: By using a diplomatic third party, you avoid the “angry confrontation” that often leads a client to invent a “negligence” claim to get out of paying their bill.
The “Service Resolution” Template
Accountants often struggle to find the right words. Use this template during Step 1 to move the needle without losing the client.
| Subject: Action Required: Finalizing Your [Year] Tax Engagement Dear [Client Name], In reviewing our files for the [Year] tax season, we noted that Invoice #[Number] for $[Amount] remains outstanding. We take great pride in our accuracy and the tax savings we’ve identified for you. If there is a question regarding your filing or if you require additional documentation to finalize your payment, please let us know immediately. Please remit payment via [Link] or contact our office by [Date] to ensure your account remains in good standing for the upcoming quarterly planning sessions. Sincerely, [Partner Name / Billing Dept] |
Why Wait for May 1st?
Accounting debt is highly seasonal. Invoices that go unpaid during the “crunch” months of February through April are significantly harder to collect once the client’s tax refund has been spent.
Don’t let your hard work become a tax write-off. With NexaCollect, you get the security of a 50-state license, the trust of a 4.85-star rating, and a process designed to protect your firm’s most valuable asset: its reputation.