Your business, your rules: managing difficult clients with confidence

Ever feel torn between wanting to fire a difficult client and worrying about losing their fees? You’re not alone. The higher the fees, the harder it is to cut the cord. It’s a classic accountant’s dilemma—and one worth addressing before it drains your energy and confidence.

It is a topic that often comes up in my conversations with mentoring clients and we’ve also discussed it in detail during a meeting of the Sole Practice Club.

Sometimes there is a confidence issue. Perhaps you have been bullied by clients and made to feel that you are inadequate or incompetent. Or maybe you are simply unsure whether a client’s demands are unreasonable. As a result you are uncertain whether to take action or to ‘let it go’ (again).

Thank goodness that these days most people are more open about their mental health issues.

None of us should feel obliged to keep acting for bullies, abusive or problematic clients. The longer you allow things to go on the greater the risks to your mental health and wellbeing.

Are challenging clients worth the stress?

Let’s face it, some clients just aren’t worth the hassle.

Maybe they’re always late, demanding, or never follow your advice. Others might drag their feet when it’s time to pay.

Whatever the issue, it’s often better to step back and ask: is this client adding value to my practice, or just to be stress levels?

And let’s not forget your self confidence. Have you ever felt bullied into thinking you’re the problem? It’s easy to doubt yourself, especially when a client’s demands are relentless.

But let’s be clear: you don’t have to put up with bullies or unreasonable behaviour. Life’s too short, and your mental health matters.

Trust your gut—it rarely lies

Many accountants started out by taking on anyone and everyone as clients.  Over time, you get better at spotting red flags and learning to trust your instincts.

The more experienced you are the easier it becomes to avoid taking on clients set alarm bells ringing and who don’t pass the ‘gut’ test. That’s those where your gut tries to warn you off.

Many is the time I have had accountants tell me that they struggle with some of their ‘legacy’ clients – who take liberties, do not respond promptly or who still act as if they have the power to get the accountant to do whatever the client demands.

It’s a common mistake to stick to the old, incomplete, mantra that ‘The customer is always right’.

This is not the full quote which is attributed to Gordon Selfridge. What he actually said was ‘The customer is always right in matters of taste’.

That is very different to assuming that you as an expert must always do whatever your (less informed, less professional) client demands.

That said, people can surprise you. Some difficult clients might change if you set clear boundaries and expectations. The question is: do you have the time and energy to invest in that process?

Re-educate or disengage? The choice is yours

Here’s the thing: It’s your practice, your business and it’s up to you to set the boundaries that suit you.

Do you insist on clients following your advice? Sticking to your terms? Paying extra when they don’t? If so, now’s the perfect time to lay down the law. For example: “In future, I may need to charge additional fees if issues arise because you haven’t followed my advice.”

If clients can’t—or won’t—comply, it’s time to disengage.

The fee hike gambit (and its risks)

One popular strategy is to hike fees for clients you’d rather not keep. The hope is they’ll leave of their own accord. But here’s a catch: some clients may accept the higher fees, leaving you stuck with a high-paying headache.

I routinely hear that such clients who have previously been undercharged admit they were simply waiting for the accountant to increase their fees. In such cases I would still tend to insist that they also authorise new and regular Direct Debit payments – to prove their willingness to pay the new higher fees. You are perfectly entitled to make clear that this an essential term of doing business with your practice.

Of course simply increasing the fees for difficult clients can also exacerbate the problem. If the client agrees to pay the higher fees, they may now become a high fee paying problem client – and one you may feel you really cannot afford to lose.

My advice is to only use this approach if you would genuinely be happy to keep the client at the new fee level. If not, be honest with yourself—and them. Let them know paying more isn’t an option because you’re parting ways.

How to sack a client gracefully

If you’ve decided to let a client go, do it with professionalism and clarity. Avoid accusations or inviting debate. Keep the focus on next steps.

A disengagement letter might look something like this:

• Explain that you’ve reviewed your client base and are focusing on specific types of clients.
• Mention that, as a result, they’ll need to find a new adviser.
• Specify the last piece of work you’ll complete and any deadlines.
• Offer to assist their new adviser and provide details they’ll need to stay compliant.
• Suggest resources, like the Tax Advice Network website to help them secure any specialist advice they might require

It’s okay to ask for help

If you’re struggling to navigate this tricky process, you’re not alone. Many accountants I mentor use me as a sounding board, especially when it comes to sacking difficult clients. I can think of a number of occasions accountants have thanked me for helping them to unpack their thinking and to manage the ‘sacking’ of difficult clients.

Sometimes, talking it through can help clarify your thoughts and build the confidence to take action.

If you’d like to no-strings chat about how to address this or any other practice related issue, book a call with me now >>>

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This post first appeared on my blog at: www.bookmarklee.co.uk/blog