Controlling an unruely accounting client

[AuditorTurnedGood]

I would appreciate some wisdom on this one. They are not a tax client, but a client for whom I am the controller. It's a smaller business, so this is a 10-15 hour per week committment. The owners are husband and wife (V.P. and President, respectivly), and are about 20 years my senior. The company uses work in process accounting, among a few other advanced issues.

The issue is this: they both seem to think they can do my job better than I can in half the time. Rather than asking a question on the accounting or financials, they research it themselves, convincing each other something is wrong based on about a third of the required information. I then spend more time that I should proving them wrong while also coming up with the right answer.

They provide a good slice of my off-season income, and it is great experience from the controller's seat, so I don't really want to can them, but could if I needed to. There have been a few other issues as well around ethics and expectations.

Thoughts anyone? Thanks!

ATG

[JG EA]

I also find this hard and usually end up getting rid of such ones.

I can tell you what worked for me once. I had a troublesome client who could be called verbally abusive (in put-downs). Yet at the time I needed the work. So, I had a talk with the client. I explained that I wanted to work for him, but I found that our business relationship made me upset to the point that I would have to quit. Then I told him the terms by which we could work together. Unbelievable but the whole thing changed for the better after that discussion.

I think your client has a right to know what is going on. Tell them your qualifications and procedures to ensure that everything is done correctly. But is their manner acceptable? Do they need to change their manners? Then make it clear that they have the right to question certain aspects, but since it takes so much of your time you will need to change extra for that time.

[JohnH]

Sorry to be a pessimist, but most clients like this won't change. You either have to adjust their billing arrangements to accommodate their nonsense or get rid of them. They will sap your time & energy so you'd better make sure they pay well for that privilege, assuming you can come up with a PITA charge high enough to make you look forward to another stupid question from them.

[Nashville]

The Rope Will Break

The issue is this: they both seem to think they can do my job better than I can in half the time. Rather than asking a question on the accounting or financials, they research it themselves, convincing each other something is wrong based on about a third of the required information.ATG

I wouldn't stop right away, but I'm telling you from experience there will come an issue that will not be resolved, and the rope will break at that point. Evaluate the good as well, namely they ARE accountant-types and presumably financial-savvy. Much better than having this arrangement with others who cannot interpret anything.

Another thing to consider is whether they are asking you to put your signature on something that is too risky for your own professional status. They may fully understand something is treacherous, and may be willing to sign themselves at their own risk. However, that kind of arrangement with them is not permissible if you are strictly their tax preparer -- but might work if you are a part-time employee or consultant and can avoid scienter.

[BOB W]

When you say "Controller", I hope you are not signing checks...................or have check signing ability. If yes, get it removed now.

[dsi]

A couple of years ago I prepared a tax return for a new client. My fee was $450. Client came to pick up the return, paid me then left. A couple of days later, client wanted to meet with me to go over the return. He wanted me to show him how I prepared the return. I said, I would be delighted to meet with him, but not until after tax season was over. Furthermore, I quoted him my consultation rate of $175/hr.

Point: I am a professional tax preparer for hire, not a teacher. BTW, he returned the following year and did the same thing, and so did I.

[JohnH]

This is probably a good place to resurrect this reliable standby:

http://www.youtube.com/watch?v=5TkuZ5oI9uY

[luke]

Outstanding!

Thanks John

[AuditorTurnedGood]

Thanks for all of your input!
"Evaluate the good as well, namely they ARE accountant-types and presumably financial-savvy. Much better than having this arrangement with others who cannot interpret anything"
Well, this is the issue. After owning the company for 14 years, when I closed this years books and gave the president the cash flow statement, she looked at it, looked at me, and said "what's this?". They "know" just enough to be dangerous.
No, I don't sign the checks, but I do everything else for the internal accouting. A CPA firm reviews the statements and does the returns.

Sounds like the consensus is to have a conversation with them about expectations, but hold my hopes for change back a little. I appreciate the perspectives, everyone.

ATG