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