Good Client--Bad Client

[Black Bart]

Found this in an old file. It's from 1979 (one firm of Sander, Shipman, and Brannick), but still relevant I'd say. It's a scorecard to help decide whether to keep clients or cut them loose. Points are assigned for each positive/negative characteristic in various categories.

CLIENT EVALUATION (circle one number in each category)

CLIENT'S INFORMATION:
(2) - Hopeless or always late
2 - Scattered but workable
4 - Client needs training
6 - Good
8 - Excellent

CLIENT'S POTENTIAL:
(5) - Terminating
(2) - Decreasing
2 - Level
8 - Growing
15 - Unlimited potential

CLIENT'S ATTITUDE TOWARD IRS:
1 - Neurotic
2 - Hostile
5 - Apathetic
8 - Wants things right

CLIENT NEEDS:
2 - Bookkeeping
5 - Unaudited reports
10 - Certified reports
12 - Special services - estate, systems
15 - "Big League" - unlimited future

COLLECTION OF FEES:
(5) - May never receive
(2) - Always 90 days late
5 - Pays within 45 days
10 - Pays on receipt of bill

FEE STRUCTURE:
(5) - Always complains -- too high
(2) - Requires time and bill itemized
5 - Usually accepts amount of bill
10 - Wants service and will pay for it
15 - Thinks we're the greatest - pays premium

CLIENTS BEATS DRUM FOR US:
(2) - Never
1 - Would if could
2 - Not recently
5 - At times
10 - Every opportunity

CLIENT WANTS:
1 - Minimum service (low fee)
2 - Security from IRS
3 - Counseling
4 - Timely service
5 - Direction and tax planning

CLIENT'S SELF-INDULGENCE:
1 - Spendthrift with self and family
2 - Cheap
3 - Frugal and economical
4 - Liberal
5 - Controlled first class

CLIENT'S ATTITUDE TOWARD OUR STAFF:
1 - Hostile
2 - Lukewarm
3 - Client wants a friend
4 - Client is poite and businesslike

LIABILITY EXPOSURE:
(20) - Good chance of loss
(5) - Possible
2 - Not likely
5 - Almost impossible

Add figures (subtract numbers in parentheses).

Total Points _____________

Scoring: Maximum = 100 points / Minimum = minus 33 points.
.
Below 30 points -- Drop client
30 to 50 points -- Evaluate in 90 days (on trial)
51 to 70 points -- Make an attempt to upgrade client
Above 70 points -- Retain client

[DaveO]

An Objective way of looking at it.

If you do decide to fire a client how do you do it?

Raise their fee until they don't come back.

A formal "firing" letter.

Some other method?

[sea-tax]

If you do decide to fire a client how do you do it?

Raise their fee until they don't come back.

A formal "firing" letter.

Some other method?

I personally try to be as honest as possible. I know this is hard sometimes and lots of people don't like confrontation but it is part of the job. I know some accountants who jack up the fee to get rid of the client but really I think that is taking the easy way out.

I just contact the client either in writing or in person or over the phone and explain to them that I will no longer be retaining them as a client . I usually give them a reason , ie: you never pay me. The client being fired usually knows why anyways.

Thankfully I have not had to do this but a few times and it is never easy.

[Black Bart]

Neither Sander, Shipman, or Brannick

mentioned that, so I guess it's every man for himself.

(1) "Raise their fee until they don't come back": Guess you could raise your "minimum wage" to a thousand dollars or so. That oughta be effective, if not "objective."

(2) "A formal "firing" letter": Those don't seem to work for me. Problem is, the guy will usually get mad and come to the office in person to either settle the matter or your hash.

(3) "Some other method": Well, lemme see. I've tried various gambits over the years with limited success. By "limited" I don't mean that I didn't get rid of them, but rather that my goal was to separate myself from them in a friendly manner. It usually doesn't work. There's just no nice way to say go away and don't come back.

Still; I've tried these:

"I'm not doing your taxes anymore. They're too complicated. You need a specialist. I suggest you go to Turkey Scratch (yes, it's a real town) and get one of those CPAs that handle this kind of heavy-duty stuff."

"I'm not doing your taxes anymore. Your case takes a whole lot of time and I'm tryin' to cut back on my workload. I'd have to charge you quite a bit more than I am now to keep doin' your stuff. I suggest you try Block, as they have a large staff and are well-equipped to handle cases like yours...You despise Block? Well, what about Jackson? Please, lower your voice and watch your language -- there are women in here."

"I'm not doing your taxes anymore. I'm doing away with all my partnership and corporate cases and just doing individual returns from now on. Here's the name and phone number of a good, reasonable tax preparer in Scratch who'll probably do it just as cheaply as I did. Yes, you can tell him I sent you (I'll turn the recorder off and stay away from the office a few days).

"I'm not doing your taxes anymore. Why? Well, you have about a 75% chance of being audited sometime in the near future. Your expenses are ridiculously over-stated, your sales are "made up," you keep no records at all, my fee is always too high, nothing ever suits you, you're constantly complaining, you have the personality of a government employee, and I wouldn't trust you as far as I could throw you."

Just kidding about that last one, but I'm workin' on it.