Client Relationships
Why accountants do what they do
When I ask accountants their WHY, most reply that they want to help their clients. In every workshop, conversation, planning day, the top response is “I want to help my clients.”
In the 25 years that I have been working with accounting firms, I have seen their commitment to helping their clients. Yes, they are constantly under pressure and don’t have time to service their clients as well as they would like. Yes, turnaround times blow out and occasionally things fall through the cracks. But the accountant’s commitment to helping their clients meet their compliance obligations and keeping/getting them out of trouble is second to none.
Accountants nag, cajole, run interference, negotiate and fight for their clients every single day. The cost to accountants is stress, overwork, overwhelm and guilt for not having enough time to look after all their clients properly. They also sacrifice time with their families, their physical and mental health.
Unfortunately, not all clients value what their accountant does for them and the sacrifices they make. They are slow to pay, don’t send in the information needed in a timely manner, ignore advice and complain about the bill. These clients are in the minority. However, they take resources away from our good clients and they cause unnecessary stress for the entire team.
And yet we keep them. Why? Perhaps we feel sorry for them, they might be a good referrer, they are connected to a number of good clients, they have been a client for many years, the fee is large and the list goes on…
I would like to challenge you to think about one difficult client over the weekend. The first client who comes to mind is the one. List what makes them difficult. Then list the reasons that you continue to work with them. That’s all. I’m not asking you to get rid of them (yet). Just document the reasons you would love to get rid of them and the reasons you continue working with them.
DM me next week and we can talk it through. I’m happy to be your sounding board.
Have a great weekend!!
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Find the courage to walk away
Many times in my personal and professional life, I have struggled to make the move and walk away from situations I knew weren’t good for me. I just couldn’t make the move. It was too hard, so I stayed in the bad personal relationship, with the difficult client, in a situation that was not good for me.
Each and every time that I stuck it out, circumstances brought the situation to a head in a way that I couldn’t ignore. A client who became abusive, another who left because I wouldn’t do something that was not legal or ethical.
The partner of one of the firms I worked with was devastated when a client, who he considered to be a friend, left because the accountant refused to write a letter confirming an overstated revenue figure for the bank. He knew that he made the right decision but he was blown away by the entitled attitude of the client, in thinking that the accountant was in the wrong!
Today, I am challenging you to think carefully and release the client(s) that you know deep down you should. Do it before circumstances take the matter out of your hands.
Stay tuned next week for some practical tips on how to have “the talk” with your client.
Share this article with a colleague and have a great day!
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Your difficult client - Who do you choose?
So which client was the first to come to mind? It was a no brainer, right?
Why? Are they:
· Slow to pay
· Difficult to work with
· Uncooperative and unresponsive
· Disrespectful
· Chaotic
· Unprofitable
· Rude
· Unappreciative
· Always late
· Critical
· Irresponsible with their obligations and their money
· Repeat offenders
You don’t need me to tell you that if you answered yes to three or more of the above, you should be parting ways with the client. But many of you won’t. I know it’s difficult to let go of clients. Especially when the fee is large. I’ve been afraid to walk away from difficult clients because I needed the fee.
One client represented 35% of my revenue. I persevered as long as I could but the director was “sailing closer to the wind” every week. In the end, I had to let go because I was in danger of getting caught up in a very questionable legal situation. I was terrified of how I would replace the lost revenue. Miraculously, I replaced the fee within two weeks. And this has happened every time I have decided to walk away from a client. I found new clients within weeks of losing the old client. Every time!
Write down your reasons for keeping your difficult client. Talk through them with a colleague in your firm. What was your decision? I’d love to know the outcome, so get in touch.
Perhaps you are good at making the hard decisions about difficult clients and I’m stating the obvious. But if you have a colleague that needs to be challenged, share this article with them.
Have a wonderful week!
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Breaking up is hard to do
Not quite ready to let go of that difficult client?
Maybe they aren’t that bad. I really don’t want to lose that fee. He/she will tell their friends (who are also clients) that I let them go. They are good referrers.
It’s not an easy decision to make. So, don’t make a decision yet. Gather the data first, so that you can make an informed decision.
What is the dollar value per year of this client? What percentage of your fee base is this client?
How much do you write on/off?
What are the WIP and debtor days on this client? Are they slow payers?
How many days does it take for the client to answer queries and send missing information?
How many times does the client need to be reminded to send in their work?
How often do they complain about the fee?
How often do they complain?
Do they take advice and respect your team’s efforts?
How often do they get themselves into trouble and expect you to bail them out?
How much revenue has this client referred in dollars? Calculate the average yearly dollar value. Are the referred clients profitable? Are they easy to deal with or are they as difficult as the referring client?
What is the dollar total per year of the friends/family of this client? How much of your firm’s fee base is potentially at risk in the unlikely event that they leave your firm in sympathy?
Document the answers to all these questions and then make a list of all the reasons that you want to keep this client. Be honest with your reasons. Are you keeping them because you don’t want to have “the talk” with them? Do they have potential in the future? Is their current situation just temporary due to a significant life crisis? Have they been a loyal client in the past? Do you feel sorry for them and you just want to help?
All of these are legitimate and reasonable reasons to keep these clients.
However, you need to make a CONSCIOUS DECISION to keep them or let them go. You have to give yourself and your team reasons for continuing to deal with this client.
I look forward to your feedback.
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