It's not uncommon for accounting firms to face difficult clients, from payment disputes to last-minute information requests. But you are not alone
According to Forbes Business Council, difficult clients are often driven by one of three things: past experiences, external pressures, or inexperience. While inexperience can be addressed through education and partnership, addressing the other two requires a more nuanced approach.
Although clients are a critical part of your business, dealing with problematic ones can create significant challenges that can ultimately harm your firm. While it may be tempting to take on any paying client, it's important to consider the potential impact on your team's time and energy. Rather than accepting all clients, it's better to focus on building strong relationships with clients who value your services and are willing to work collaboratively toward success.
In this blog, we’ll go through 5 ideas on how to push back on unrealistic requests from difficult clients.
1 - Do the job, before doing your job
Before starting to work with a new client, it's important to troubleshoot any potential issues by setting clear expectations. Take the time to understand their goals and expectations, and be transparent about what your team can actually do and what is achievable. +}
It's your responsibility as an accountant to ensure that clients understand your communication clearly. Don't make assumptions about what a client understands from a phone call or meeting. Create a contract with details timelines, client responsibilities, deliverables, and out-of-questions tasks. This approach not only helps manage expectations but also provides a paper trail for future reference.
While this may not guarantee a completely trouble-free relationship, it does set clear boundaries and expectations from the beginning, making it easier to address any issues that may arise in the future. By prioritizing clear communication and expectations, you can build more productive and successful relationships with your clients.
2 - Ask yourself, is it worth it?
Consider whether the client is a good fit for your business. While it may be tempting to accept any client who can pay, it's important to evaluate whether working with them is worth the time, effort, and potential stress. Ask yourself if the client's expectations align with your values and priorities and if their demands are, at least feasible.
If you find that the client is not a good fit, it may be time to terminate the contract. This can be done amicably by expressing your concerns and suggesting alternative options, if possible. Remember that ending a working relationship does not necessarily mean failure, but rather a strategic decision to focus on clients who are a better match for your business.
Ultimately, prioritizing the right clients is key to the long-term success of your business. By being selective and strategic, you can build strong, mutually beneficial relationships that lead to growth and profitability.
3 - Don’t become your own enemy
You’ve set your expectations but then you find yourself undoing your own words. If you always say yes and try to accommodate every request, you're sending the message that any mess they hand you is acceptable. While it's not always necessary to say no, it's important to communicate openly with your clients about what can realistically be achieved within a given timeframe.
Don’t cover up the scope of work and any potential limitations. If you anticipate that additional work or increased pressure may require a change in the timeline or deliverables, be proactive in discussing this with the client and exploring options to reorganize the plan to ensure a successful outcome. It is not sustainable to cover the cost of overwork or increased pressure without a clear plan.
4 - Think about your non-negotiables beforehand
When you negotiate with a client, it's important to prepare ahead of time. You want to go into the negotiation with an open mind and be willing to listen to the client's needs and concerns, but you also want to know what your non-negotiables are. These are the things that you cannot compromise on, which could be your fee, the timing of the project, or tasks that are not aligned with your values.
However, it's also important to remember that negotiations are a two-way street. You should be open to compromise and find a solution that works for both parties. If the client presents an offer that you're not comfortable with, it's okay to say "let me think about it" instead of immediately saying no. This gives you time to evaluate the offer and develop a more thoughtful response.
5 - Know when to fire your client
There may be situations where despite your best efforts, it’s not possible to salvage a difficult client relationship. It is important to recognize that continuing the relationship may not be in the best interest of your business or your mental health. A difficult client can become so demanding and disruptive that it can affect your productivity and other client relationships.
In such cases, it is important to terminate the contract on amicable terms and suggest other potential options. At the end of the day, it is important to prioritize d the health of your business, and sometimes walking away from a difficult client is the best decision for everyone involved.
It’s good to always have in mind Sal Rezai's red flags that should make you fire a client:
- The client lied to you.
- The client costs you money and time.
- The client is abusive.
- The client doesn’t follow your advice, then blames you when things go wrong.
Make your accounting firm worth
Managing difficult clients is an inevitable part of running a business. While it can be challenging, it's important to remember that your time and energy are valuable. By setting expectations, communicating clearly, and knowing when to walk away, you can navigate difficult client situations with grace and professionalism. Remember, a healthy business is built on positive, mutually beneficial relationships with clients who respect your expertise and appreciate the value you bring to the table. With these tips and strategies in mind, you can ensure that your business thrives and grows in a sustainable, fulfilling way.
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Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References
Freiman, A. (2022, July 8). Four Ways to Deal With Rude Clients in Your Accounting Practice. Patriot Software. https://www.patriotsoftware.com/blog/accountant-professionals/how-deal-with-rude-clients-your-accounting-practice/
Council, F. B. (2019, December 9). Council Post: 16 Ways To Handle A Client Who Has Unrealistic Expectations. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2019/12/09/16-ways-to-handle-a-client-who-has-unrealistic-expectations/
Rezai, S. (2021, July 26). Difficult Accounting Clients: How to Handle Them. . .and When to Let Them Go | FreshBooks Blog. FreshBooks Blog - Resources & Advice for Small Business Owners. https://www.freshbooks.com/blog/difficult-accounting-clients
