Bean Counters

This happened to a friend of mine. He works independently and bills his time through another company. This other company adds 10% to his bill to cover their costs. One of his clients has refused to pay the 10% because according to their contract with this other company, his cost should be passed through without any addition. Rules is rules, or in this case, a contract is a contract.

Well, the client wants the work done. The accountant, known affectionately as "The Bean Counter" says the client cannot pay the 10%. The billing company says it will not process the billing invoice unless they get reimbursed for their costs. And my friend says that he will not do the work unless he is assured that he will get paid.

The solution.

The contract allows the billing company to define my friend as a "contractor". As a contractor, they are allowed to add 25% to his bill. The Bean Counter says that's OK. It complies with the contract.

So everyone is happy.