Discussion:When to fire a client?
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| {{ForumReplyPost|UserID=Warren|Date=24 May 2006|Text=I agree that it's very difficult to give up a high fee client but if he his being unreasonable about this then he will certainly be unreasonable when anything goes wrong even when it has nothing to do with you or your work. This is the kind of client that is likely to file a lawsuit at the drop of a hat and when he does it will cost you even if you win the suit.}} | {{ForumReplyPost|UserID=Warren|Date=24 May 2006|Text=I agree that it's very difficult to give up a high fee client but if he his being unreasonable about this then he will certainly be unreasonable when anything goes wrong even when it has nothing to do with you or your work. This is the kind of client that is likely to file a lawsuit at the drop of a hat and when he does it will cost you even if you win the suit.}} | ||
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| + | {{ForumReplyPost|UserID=Foxttron|Date=24 May 2006|Text=I can tell you that, for the kind of service it seems you are providing, the fees he pays you are low. You should always remind him that you are the accountant, not the bookkeper; you are not an employee. Trust me when I tell you that his behavior (it is not my problem) would not survive with a big accounting firm. The truth of the matter is that he needs you more than you need him; there are not that many people that can provide the service you describe for that money (Transfer pricing studies alone can run, at a bare minimum, in the 10's of thousand per year!) To let him feel the heat, I would suggest him to retain you for some services, but not for all (thus keeping some income) and let him go in the market place for the rest (the audit, TP, etc.) I am sure that he will probably come back to you once he sees what is really out there. I won't be too accomodating just because he is your biggest client; he is paying for outside services, so he needs to follow your rules, not his. }} | ||
Revision as of 19:37, 24 May 2006
Discussion Forum Index --> Tax Questions --> When to fire a client?
| 23 May 2006 | |
| I may be beating a dead horse here, but I am curious as to which of you great ppl would think that it is time to fire my most profitable client.
Again, he is Canadian and I incorporated him in the US for 2006 and did voluntary disclosures with the government and several states for prior year's not filing of taxes in the US. He is adamently opposed to much of what I tell him, but it is law...transfer pricing, his liability as it pertains to sales taxes, corporate taxes, his travel in the US which will force him to file a 1040NR, etc. etc. Today, he comes to me and asks for financials for his business in the US. Of course, I have reconciled all I can given the information provided to me. He did not incorporate until March, so historical transactions from 1/1/06 need to be provided to me to give him an accurate b/s and i/s for the months. His question...why do I not have the info??? I repsonded that I had requested it from his office personnel in Canada via telephone, fax AND email. So...he freaks!! Says that it was my responsiblity to have that information and to request it and not have it is my fault...I can only ask, no? Then as far as electronically, he hates that...wants me to do it all by phone...that I am only emailing to protect myself.... Hard to fire this client as he is my bread/butter....about 35K this year to bill him alone, but I can't make him understand the "gigo"...garbage in/garbage out theory. If I don't have the information, how in the hell do I prepare financials? So....what would you ppl do given the same scenario? I am pulling my hair out trying to make him happy, but also trying to get all my ducks in a row for the upcoming audit...which I am SURE will be there...HELP!!!! | |
Inagpurwala (talk|edits) said: | 23 May 2006 |
| Sandysea:
Yes you are in very difficult and delicate situation. Try once more to expalin him that without the requested information you cannot do your job adequately. Have a lucnh/dinner meeting if possible. After you have tried all the options you could, let this client go. I hope you have well written Engagement letter for this client to protect yur business. I have in the past let two clients go, because did not provide all the information needed to file tax returns. When clients were hit with penalty for missing income, they screamed at me. I had all correspondence in file. Showed them, and said good bye! Hope things will work out with him and he will provide you needed information so that you can complete the financials.Inagpurwala 17:47, 23 May 2006 (CDT) | |
| 23 May 2006 | |
| Sandysea:
Read the following thread: http://www.taxalmanac.org/index.php/Discussion:Employees_in_Kiosks where fellow almanacers advised me to get rid of a client. I took their advice. If your client is your bread and butter, it may be economically difficult to get rid of the client, but think of the long-term consequence this can have on your business. Sometimes it is better to let go. If a client will not take your advice, give him/her the boot. My 2 cents. | |
| 24 May 2006 | |
| I would recommend listening to your inner voice. I think you know that this client is a train wreck waiting to happen. Isn't it his responsibility to provide you the information necessary to complete the financial reports? Typically, this type of client will blame you for any and everything that goes wrong. Would you really want to go through an audit with this guy, is the money worth it? I'd make sure that your bill was paid and send him a letter diplomatically give him the boot. Good luck. | |
Mtmckeecpa (talk|edits) said: | 24 May 2006 |
| Ditto with the "inner voice"...a train wreck waiting to happen or waiting to throw you under the bus when the ?*#$ hits the fan.
Sometimes your biggest clients and/or referral sources can be the biggest source of heart burn. Good luck, Sandy. | |
| 24 May 2006 | |
| I agree that it's very difficult to give up a high fee client but if he his being unreasonable about this then he will certainly be unreasonable when anything goes wrong even when it has nothing to do with you or your work. This is the kind of client that is likely to file a lawsuit at the drop of a hat and when he does it will cost you even if you win the suit. | |
| 24 May 2006 | |
| I can tell you that, for the kind of service it seems you are providing, the fees he pays you are low. You should always remind him that you are the accountant, not the bookkeper; you are not an employee. Trust me when I tell you that his behavior (it is not my problem) would not survive with a big accounting firm. The truth of the matter is that he needs you more than you need him; there are not that many people that can provide the service you describe for that money (Transfer pricing studies alone can run, at a bare minimum, in the 10's of thousand per year!) To let him feel the heat, I would suggest him to retain you for some services, but not for all (thus keeping some income) and let him go in the market place for the rest (the audit, TP, etc.) I am sure that he will probably come back to you once he sees what is really out there. I won't be too accomodating just because he is your biggest client; he is paying for outside services, so he needs to follow your rules, not his. | |
