Client Relationships

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.

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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.

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How does your firm deal with rude clients?

Do you tolerate their behaviour because the fee is large, or they have been with the firm for decades? Do you find yourself saying “It’s just the way they are, ignore them.”

No one in our team should be abused by any client! NEVER!

So how do we handle rude and abusive clients?

Step 1 – Design a process for reporting abusive behaviour
The process needs to be documented so that each member of your team knows who they talk to and the steps that will be followed to address the issue.   Who is this behaviour reported to? What are the steps to deal with the behaviour?

Step 2 – Document the behaviour in the client file
The specifics need to be documented in the client file for a number of reasons:
·      To keep track of the number of instances and what exactly was said.
·       A more factual conversation can be had with the client where dates, times and specific behaviours can be discussed with the client
·      An audit trail is created if necessary to address any issues that may arise with your professional body, PI insurance and the ATO

Step 3 – Discuss at an executive level
Make a decision about what will be done. What are the options:
·      Let it slide.
·      Contact the client to discuss.
·      Communicate the consequences to the client of future abusive behaviour.
·      Decide to let the client go based on historical behaviour.

Step 4 – Discuss the above decision with the client
This needs to be a conversation either face-to-face or on the phone. Give the client specifics about the complaint and then listen to their explanation. Listen carefully and calmly. Take notes on their response. Then once they have finished speaking, tell them what was decided at the partners’ meeting and why. Be firm, calm and detached.

Step 5 – Confirm your discussion in writing
Document your discussion in an email to the client with the actions that the firm will take in moving forward. If you are terminating the relationship, write a formal letter and notify any other relevant bodies. Include all documentation on their file.

Step 6 – Inform the team member
Have a private conversation with the team member who made the complaint. Give them the basic information of what happened and the reasons for your decision. Reassure them that you support them and give them the opportunity to be removed from working with the client if necessary.

Step 7 – Inform your team
Everyone in your team will know some of the details of what happened, so it’s best for the information to come from you. Outline briefly what occurred and the decision that was made at executive level.

Reinforce that abusive behaviour by a client is not acceptable. Remind them of the process in place to report such behaviour. Most importantly, remind them how to conduct themselves professionally AND that it is the partners’ decision to terminate the client.

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Many accountant/client relationships are 90/10 at worst but rarely 50/50.

Accountants have a set of rules for their team regarding servicing their clients. Rarely do firms have a set of rules for their clients apart from their obligations regarding record keeping and full disclosure. Engagement letters do spell out the client’s obligations regarding fees but often the client ignores these.

We need to remember that ALL RELATIONSHIPS ARE TWO WAY.

What does your firm expect from your clients?

What do your clients expect from your firm?

Are you the one always:
·      nagging clients to send in work
·      reminding them about deadlines
·      following up queries and missing information
·      smoothing things over with the ATO because the client hasn’t met their commitments
·      chasing payments

Most clients are very co-operative but some are not. We are there to ASSIST our clients in meeting their obligations to the ATO. Our role is not to take those RESPONSIBILTIES onto our shoulders.

If you have these types of clients, it’s time to set up some very specific rules and boundaries.

Brainstorm these with your team. Document them and then discuss them with the client.

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Every time that I have allowed logic to override my intuition, it’s ended in disaster. Your instinct is not woo woo. Your subconscious picks up on patterns that you have seen in the past before your logical brain catches up. Take notice!

I met with one prospective client years ago who was a rude know it all. He was aggressive and arrogant. At the time, I needed the fee, so I took him on as a client. I justified my decision by thinking that maybe it was his way and that once we started working together, he would see value and that we could work together. Unfortunately, I was right about him. He wouldn’t take advice, he was very difficult to deal with, and he didn’t pay any of my invoices. Ultimately, I had to take him to the tribunal, and he was ordered to pay my fee in full and all costs. The stress and time that I lost to prepare and attend the tribunal were a huge cost to me. I should have listened to my instinct at my first meeting with him!

When I met another similar client many years later, I listened to my instinct. John had recently purchased the firm of one of my clients who I had worked with for 14 years. He was similarly aggressive and arrogant and this time I paused and listened to my intuition. At the end of the meeting, John looked at me and said, “so Dorothy, what can you do for my firm?” I looked him in the eye and replied, “based on our conversation today, John, I don’t think that I can help you!” Months later, I found out that the firm had imploded. Staff and clients had left in droves, and the firm was in trouble.

Not all clients deserve you and your firm. Listen to your intuition and reject them at the first meeting. The cost to your team and your firm is not worth the fee.

Let me know what you think.

Image courtesy of Freepik.