Rating clients

[kathyc2]

I went through my client list and gave everyone a 1 to 5 rating. 1's being clients that are a joy to work with, 2 and 3 room for improvement, 4's skating on thin ice but being given one more chance and 5's will be receiving an email to make other arrangements next year.  1's were over 50%, and 4-5 less than 10% but a source of excess frustration. 

[Dave T]

Great idea Kathy. 

I have a few, not a lot of 5"s.  I'd be interested in how you would word your letter to them, especially if they have been long time clients.

[BrewOne]

it's tricky.  We aren't always aware of the connections clients have with each other.  I thought I had mine sorted but one of the clients I had "fired" called me for help with their partnership and I told him I was retired and he replied "No you're not."

[kathyc2]

1 hour ago, Dave T said:

Great idea Kathy. 

I have a few, not a lot of 5"s.  I'd be interested in how you would word your letter to them, especially if they have been long time clients.

My clients all know that I've been scaling back.  No longer doing accounting work or corp returns.  They also know that in the next several years I may be totally retired.  Letter letting them go will in some way reference scaling back.

The rating system is a reminder to me how to answer when they ask how much longer I'll be in business. One's will be told as long as I'm still mentally sharp.  Others may get an answer of "a couple years" or "five or so years" depending on the degree I want to keep them.  All have been told that unless it's because of immediate health reasons, I'll give them at least a years notice.

I don't have an issue if they are long term clients.  Most have been PITA entire time.  Back when I actually needed the money I'd be much more tolerant then now when the income is nice but not needed.

I make a note on Excel sheet whenever I add a new client as to how they came to me.  Most clients have at least one or several others clients that are their family, friend or co-worker.  I do think harder on those if I want to release or keep.

[Patti in Upstate NY]

I printed my client list in January.  Because it's all a blur by April, anytime someone left my office and I wanted to scream, I highlighted their name.  They will get a letter at the end of April saying I am no longer able to assist them.   

My problem is I have several families.  I love Mom/Dad.  I love sister/brother.  But one family member is ridiculously difficult to deal with.  It's been hard to figure out how to fire one and not all.  

My go to in the past has been to say "I no longer have the time to dedicate to a return as complicated as yours and since I want you to get the best service, please look for someone else."  In my head, I'm saying "you are insufferable, and I don't like you.  There is no amount of money that makes it worth it to have you sit across from me ever again and good luck finding someone like me who will put up with your $h1t."   

Sure.  They may go out into the community and tell people I couldn't handle it.   

I don't care.  My reputation speaks for itself and I'm not taking new clients anyway.

 

[Sara EA]

One way of getting rid of such clients is to significantly raise their fees so they leave on their own.  Beware, though, they may just pay it, but at least you'll be compensated for the aggravation.  I had one jerk whose fees I raised by $500 each year for a couple of years.  He started out at $800 and went to $1,800.  He was on schedule for $2,300 when another accountant in the office took him over.  

[BulldogTom]

14 hours ago, Patti in Upstate NY said:

I love Mom/Dad.  I love sister/brother.  But one family member is ridiculously difficult to deal with.  It's been hard to figure out how to fire one and not all.  

11 hours ago, Sara EA said:

significantly raise their fees so they leave on their own.  Beware, though, they may just pay it, 

@Patti in Upstate NY exactly.  Mom is insufferable.   Owns the S-Corp.   Love the kids who get the K-1s.   4 total returns.

@Sara EA Slowly raising the Corp and Mom.   She is starting to notice.   Afraid if I raise her too much she will tell the kids.

Tom
Longview, TX

[kathyc2]

I decided to keep it very simple.  This is what I came up with:

"This tax season was rather hectic for me, especially toward the end.  After reflecting, I realize that I need to reduce some of the workload to maintain my sanity.

While I have enjoyed helping with your tax prep needs over the years, I think it’s best that you make other arrangements for next year. I wanted to let you know now so you have ample time to find another preparer."

Thoughts?

[jklcpa]

39 minutes ago, kathyc2 said:

After reflecting, I realize that I need to reduce some of the workload to maintain my sanity.

Sounds good, but I would suggest this substitution:
After reflecting, I realize that I need to reduce my workload to a more manageable level.

[DANRVAN]

49 minutes ago, jklcpa said:

Sounds good, but I would suggest this substitution:
After reflecting, I realize that I need to reduce my workload to a more manageable level.

Agree, make it positive and not like you were on the brink of going over the edge.

Also I do not agree with pricing a client out your practice as you need to be accountable for your billings.

[Dave T]

Kathy, I think this is spot on along with the recommendation of management of workload.

I have been thinking about this for several days now after an encounter I had with one of my 5's. She called and said I had forgotten to include the payment voucher for NYS. I wasn't sure how I might have missed that but said I would send her a PDF of the return and she could print it out. She said Ok and that she would go the library and print it. 

I sent the file and got a call a day later. She was all upset because it was going to cost a lot to print the return ( all she needed was the voucher not the whole return) Well after more allegations of not paying attention, etc. I explained that all her tax docs are on one side of the folder and the returns, e-file docs, and cover letter are on the other.  I hear some ruffling of papers and sure enough there was the voucher in with the return all by itself. This all occurred on April 14.

Thanks for allowing me to rant and for the very wise and diplomatic wording of the termination letter.