AdviceClinic
Poor client behaviour: when should you draw the line?
AAT members know the dread of calls and emails coming in from bad clients. But it doesn’t have to be that way, explains Della Hudson FCA
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D-list clients. We’ve all got them. They are like vampires draining our time and energy. You might long for a relationship with somebody who wants to be with you 24/7 but, when it’s a client, it’s really not ideal. And they are usually the ones who pay us the worst fees too.
But how do we decide that enough is enough? And what can we do about it?
Unlike solicitors, we’re not obliged to accept every client who comes our way. It can be tough running a business, but one of the perks is that we get to choose who we work with. I prefer to work with nice people who value me and my team – and also pay a decent fee promptly, of course.
Commercially, it makes sense to be a bit choosy about your clients because you’ll do your best work for people you like so everybody wins.
Set boundaries
But how do we set boundaries with these energy vampires?
First we need to set boundaries for ourselves. Stand in front of a mirror and practise saying no. It’s as simple as that. No need to give an apologetic explanation, just no.
Each February we sit down as a team and work out who belongs on our D list. It doesn’t necessarily mean that we’re ditching them straight away but, if they reach two years on the D list, they’re out.
Client profiles and what to do You may recognise some of our D-list clients.
LARRY LATE
Larry Late always drops off his records at the last minute. Frankly, if any adult needs more reminders to do something than my kids, then they need a nanny, not an accountant. I’m no Mary Poppins, so Larry is not a good fit for my business.
• Send reminder emails early (April, June, September and October for self-assessment)
• Tell your clients your internal deadlines, so you have enough time to deliver a high-quality job of which you can be proud. Rushing work at the last minute means that you may miss things so it’s in the client’s interest too.
• Consider increasing fees for work received after your internal deadline.
• Self assessment information received in December or January means an automatic D listing.
WEEKEND WENDY
Weekend Wendy does her accounts at the weekend and rings you with questions as they occur to her.
• Why would you answer the phone outside of your normal business hours? Leave her to speak to your voicemail or invest in an answering service.
• Clients often send emails when it is convenient for them. Reply when it is convenient for you.
SHODDY SHARON
Shoddy Sharon sends you a carrier bag of crumpled papers or half-completed software. If you’ve never thought to train her, now is the time.
• Consider using software so that bookkeeping clients can just take a photograph of their invoices or forward a PDF to a special email account. They can do this as soon as they receive the invoice/receipt, so they can claim more costs before they lose the paperwork
• Bank feeds are free with most software. Record a few videos on how to set these up or talk Sharon through it over a Zoom call
• Create a series of videos and helpsheets that cover the things you need Sharon to do. You can reuse these with any client that needs improving, organise some client training events online or in your offices.
STINGY STEVE
Stingy Steve tries to renegotiate fees every time you mention your annual increase (you do have an annual inflationary increase, don’t you?). If Steve is one of your bigger fees you may be tempted to give yet another discount. But why should your A-list clients subsidise Steve?
• Invest in some proposal software or set up your own spreadsheet.
• Have confidence in your fees. If they’re acceptable for your A-list clients, why should you reduce them for your D-list clients?
• Let him go. If Steve leaves you will have more time to take on another A- or B-list client to replace him.
NON-PAYING NIGEL
We trade our time and expertise in exchange for cash. If he’s not paying, he’s not a client.
• Have a credit control procedure and follow it. The day after due date call politely to check that Nigel has received your invoice and to ask when you can expect payment. Chase early and keep chasing.
• As a small business, you can legally add interest and a collection fee to the debt.
• You should never be embarrassed to chase non-payers – they are the ones breaking your contract.
EXTRAS ELLEN
Extras Ellen always wants extra services and you forget to tell her it’s chargeable until you’ve accumulated hundreds or thousands of pounds of extra fees.
• When asked to do additional work get into the habit of saying, “Yes, and that will cost £XYZ.”
• Don’t forget to raise the extra work order. And then the invoice!
If these tactics don’t work in reforming your delinquent clients then you may need to part company. Some client behaviour such as rudeness to myself or my team is not acceptable at all and these clients become instant ex-clients.
It is never easy to break up a relationship but I’m sure it’s not the first time you’ve done it. Every time I’ve coached a client through ‘reorganising’ their business they have been immensely pleased to reclaim the business they love.
The object is to ditch the client and to do so in a professional manner. You may want to write out a script first and maybe rehearse it. You don’t need to give any reason. If they’re good people but a bad fit for you, then you may even be able to refer them to somebody better suited to their needs.
Just clearing out a couple of D-list clients can leave you with a very different business where you look forward to starting work each day and you may even smile when the phone rings. Build a business where every client is your favourite client.
Della Hudson FCA is author of The Numbers Business: How to grow a successful cloud accountancy practice
Poor client behaviour: when should you draw the line?
Members in practice and licensed members know the dread of seeing calls and emails coming in from bad clients. But it doesn’t have to be that way, explains Della Hudson
