client termination letters - send Priority or Certified?

[schirallicpa]

Cleaning house.  Getting rid of the problem clients.  Would you send termination letters certified?  Or just priority - which would have tracking that it was delivered

[Lee B]

I would send them priority

[Catherine]

And make sure to take them OFF the list for new season client organizers!

[SaraEA]

I have fired clients using plain ole USPS.  They all got the message, although a couple begged me to keep them on until they got through some complex situations (end of a trust, etc. and one who just couldn't bear to go anywhere else).  I did, but at least I got rid of most of the "high risk" and PIAs.

[JohnH]

Start with email.  Their reply gives you proof for your records that they received the message.  If they don't reply, escalate to Certified Mail with Return Receipt. 

[jklcpa]

A reply from them may not be necessary as proof of receipt of email. Some email functions through ISPs or apps have the option to receive an acknowledgement that the recipient received and read the email.  I still prefer an actual letter sent by snail mail better for termination letters and other official correspondence though. 

[Richcpaman]

We are under no legal obligation to continue providing tax return services in future years.

If you don't want to prepare a tax return next year, don't send them a organizer, don't send them a appointment and do not accept an appointment if they call.

Yes, it is polite to send them a letter saying to "get lost".  But really, email, USPS, Priority, Certified or even smoke signals....  It is a courtesy you are extending to them.

They do not contact US to tell US that they won't be back, right?  (Well, except to get free copies of prior years returns so they can give them to the new person...)

The letter I would send, would state that next years fee is going to last years fee plus an increase of 1.xx more.  They can make a decision after that.

Rich 

 

 

[Abby Normal]

I usually just fire them by billing them much more than usual. Consider it a parting gift.

[Catherine]

On another forum, the standard advice was to double their bill every year until they left or you were happy.  One guy wrote back, saying he'd inherited a "problem client" (acctg and tax) who drove him NUTS always calling with questions.  Annual fee was $1250.  So he double it to $2500.  Still drove him nuts.  Doubled again to $5,000 and they were still annoying.  Doubled it yet *again* to $10,000 - and now they're some of his favorite clients, with whom he is always happy to chat!  The fee just wasn't commensurate with what they needed and wanted.  How many times do we put up with stuff we should be charging for, and resent it, when clients might be happy to pay more?  (Or walk away, with us waving energetically behind them to hurry them along.)

Make sure the ones you are firing are really PITA's that you don't want at any price.  Else try hiking the price to the level they annoy you, and see.  One guy said some years ago that if you double your price and lose half the clients, you're making the same money for half the work. 

[Gail in Virginia]

You know, that is an excellent point Catherine.  I have been thinking that I want to sell my business and get out so I can work less hard.  Maybe if I don't have much luck selling, I should just keep raising my fees until I am working less hard because people leave but I will still be making money on the ones that stay.  Something to think about before the first of the year......

[ILLMAS]

I want to congratulate all that have put their foot down and fired clients, I fired two clients via letter about 2 years ago and my stress level went down from 100% to 0%.  

[FDNY]

I've only fired a few over the years and did it by a telephone call telling them I think they would be better served by someone else.   I also let them know that I will be available to their new preparer if needed.  I like to leave on good terms, but it feels so good getting rid of the PITAs, usually people that call all year for every petty nonsense reason you can think of.    I've raised their prices but the money is still not worth it.

Lucky for me I like most of my clients and am more than happy to give them added value with answering their questions during the year, as long as they don't abuse my good nature, or else they get the call.