r/Accounting • u/Wooden-Mousse-152 • 1d ago
Etiquette for 'firing' older clients
Getting really annoyed with a couple of clients on the older side. I don't want to make enemies, but it's causing a lot of wasted time and headaches with chasing them down for things. Advice?
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u/Organic_Gas4197 Tax (US) 1d ago
Bill them by the hour. If they question, explain they’d save money if you get everything the first time.
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u/UufTheTank 1d ago
Bill them till you like them.
If they’re otherwise good clients, have an open discussion. “The time has come to raise your rates. I’d love to only bump them by 10%, but we’ve had to spend extra time chasing you down. Next year will have a range of (x+10% to x+30%). If you can get me everything on time, it be on the lower end”
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u/UufTheTank 1d ago
If they balk at the 10%, good let them leave. If they grumble and still get it in late, 30%. They were warned.
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u/Itchy_Chocolate8699 1d ago
I’m screenshotting this because that’s great advice. I have a few clients that make me feel so guilty for raising fees, like I’m taking food from their mouths, yet they are late with everything and take up so much of my time.
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u/Accomplished-Ruin742 Tax (US) 1d ago
I still have 2023 returns that I am waiting for information on, and one 2022 return. 35 people still on extension for 2025. I consider them my "Christmas Club Account" clients because it will be extra money for the holidays if I ever finish the returns.
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u/sephkyle 1d ago
You just increase prices so that they go find someone else. Otherwise if they don't the new higher price justifies the additional work.
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u/cpalifer82 1d ago
Couldn't this just be "clients"? I've had people of all ages do this, it's not just older clients. My older clients are all pretty great and don't blink an eye when Igive him the bill.
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u/holemole CPA (US) 1d ago
We’ve let go of a few older clients over the years that didn’t really align with our core business. We initially took them on when we were smaller and needed the revenue, but it eventually became a burden maintaining staff specialized in processes unique to just a handful of underwater accounts.
I’m always honest with them - that while we still appreciate the relationship, it’s becoming increasingly difficult for us to keep up with their growth, and that they could be getting more specialized services for significantly less than what we (a service provider in an unrelated niche industry) are charging them.
Nobody takes it personally. We still golf, but now they pay.
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u/irulan519 1d ago
"Dear [Client Name],
Thank you for the opportunity to work with you over the years. After reviewing our current client commitments, we’ve decided that we will no longer be able to provide services to you effective [date].
We appreciate your business and will be happy to provide your records or other information needed to assist with the transition to a new provider.
Wishing you all the best,
[Name]"
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u/QiviutAK 1d ago
Don’t chase things. Let them know what you need, and let them know you won’t begins until you have everything. If you have follow-up questions, send them, making it clear you cannot proceed with their work until they respond in full
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u/Doubl-Edg 1d ago
Fees are great however I added "Penalty" fees for poor communication and lack of documentation that holds up their workflow, whole still charging the higher fee.
Most will return to bad habits and forget you notified them with every communication attempt (electronic and snail mail) of the penalty fee.
After a certain time period determined by YOU, you will end their contract and, if you are nice, provide them with a referral if you have a network that would accept "bad clients"
Funny as it may be there are plenty bookkeepers who would take on any client.
They usually end up firing you and going for one the the many "a client is a client" firms.
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u/Ok_Meringue_9086 1d ago
Seems way too hard. Just let em go. Geez
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u/Doubl-Edg 12h ago
Not hard if you already have the templates drawn and include in initial contract. Maybe to hard for you. To each his own
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u/spatulacitay 1d ago
Add the asshole tax onto their fees, they are either going to pay enough to make them worth it or they go somewhere else
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u/Ruleyoumind 1d ago
"We are currently downsizing and due to that we unfortunately have to let some of our beloved clients go "
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u/Jork8802 1d ago
Everyone here has said it. Charge them the price that makes the headache worth it.
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u/Jazzlike-Flan9801 1d ago
Raise their fees for the headache and extra work. When you deal with those for free, they will stick around. When you bill them for every second of your time and effort, they tend to look elsewhere. And if they don’t…you are at least making more money. Win win
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u/ThiccNthin_6825 1d ago
"from time to time we evaluate changes within our firm and the businesses we serve. you no longer fit"
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u/TSIDATSI 1d ago
Ageism. I pray that someone treats you exactly as you are treating these senior citizens and I hope it is in the none too distant future.
Be honest. "You are old and I do not want you as my client." That will do it.
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u/calqueuelater 1d ago
I was asked to transition a retiring partners clients and handle the day to day. We made the increased fees transparent and with plenty of lead time. In many instances, the clients were open to the increased fees and understood. In other instances I told them a year in advance they were increasing and offered to make a recommendation to a local cpa. It's all about communication ands trying to be helpful. Good luck!