From a $24K client to 60 5-star Google reviews, the last month was full of wins for entrepreneurial accountants in the Create Your Dream Firm
The #1 Reason Why Premium Clients Fire Their Accountants
Let’s discuss the number one reason why high-quality clients fire their accounting firms. We’ll start with information I’ve gathered through my own experiences with private coaching clients.
Recently, I had a client jump on the call amidst the final stretch of the chaotic tax season. When they hopped onto it, you could see their frustration plain as day. This reaction was 100% warranted because they had done everything right, but the client was still frustrated with them. Their client was doubting their expertise, their relationship, the investments they’ve paid to their company… everything was falling apart at the seams.
When you’ve been giving a client your all, trying your best to deliver a high-value service, and that value is not being recognized the way that it deserves to be, frustration is the natural response.
Once the situation reaches this point, you can try and salvage the relationship. We encourage you to try to do so, but odds are it’s unrecoverable. Instead of harping on a perceived “failure,” try to use this as an opportunity to better meet future client’s needs.
Why Clients Fire Good Accountants & The Light At The End of The Tunnel
The #1 reason why premium clients leave or fire their partner accountants is lack of communication. Accurate and consistent communication is key to building lasting relationships with your dream clients. But, what if the client you lost wasn’t a dream client at all? Think to yourself “Is this the type of client I want in the long term?”
One Man's Trash is Another Man's Treasure
More often than not, when I ask during coaching calls whether or not the client they lost was a dream client, they think about quickly and say “no.” And I said, okay, why? Well, if they’re not in the right industry, they’re not a business client. They are personal tax returns. And I said, okay, that’s not a problem, right?
When you let a non-dream client take up your time and resources, you’re removing the option to add dream clients. And, you don’t even want them in the first place. We understand that you agreed to meet certain contractual obligations, but what better time than post-tax season to take inventory of your clients? If you identify individuals or business that aren’t your dream clients, don’t waste your time bringing them into 2023.
This is the first step to moving away from draining clients and moving toward dream clients.
Some firm owners’ dream clients are once-a-year tax clients, others are looking to primarily offer advisory services, and others are looking to provide the full spectrum of accounting services. Just because someone isn’t your dream client doesn’t mean they aren’t someone else’s dream client.
Out With The Old, In With The New
Why Letting Go of Accounting Firm Clients is Necessary
It is necessary for accounting firms to part ways with clients who consume your time and don’t recognize your value. You won’t have to waste time reassuring them or reasserting your expertise. And, as an added benefit you make time for clients that fit in your niche and in your dream firm. If you haven’t chosen a niche yet, take a look at the top 10 most profitable accounting niches.
The funniest part about that story I mentioned earlier with the coaching call client, is that they had done everything, right. They had communicated ahead of time, they had asked the right questions, and given detailed guidance and answers. Their client simply didn’t follow their advice. And when it came around to bite them in the butt, they tried to blame their accountant… The person who told them how to avoid this problem.
Unfortunately, I know that stories like this are all too common. It happens all the time. And when things like this happen, it’s time to end the professional relationship with your problem client. Take care to end things as professionally and politely as possible, but now is the time to turn your attention to clients who will appreciate what you do.
If it’s not appreciated, it’s the wrong fit. Let them go and find another relationship that is better suited for that particular type of individual.
What Happens When Firms Only Work With Dream Accounting Clients?
If you work with the right people, all the advice, guidance, effort, and care that you put into your services and your delivery, making sure your expertise is fully understood and maximized will be appreciated. You will be able to generate massive revenue while winning back your time.
Again, the number one reason that people leave their accounting professionals behind is because of lack of communication. But normally it’s because we’re communicating with the wrong type of person. No matter how much you communicate, if it is with the wrong person, they’re never going to see the value in what you have to offer.
If this is the type of client relationship you’re going through, part ways peacefully and find people that ultimately do recognize and respect your expertise.
The Next Step To Sign Premium Accounting Clients
Now that you’ve released draining clients, it’s time to turn your attention to attracting the business of your dream clients. And, that’s exactly what we do in the Create Your Dream Firm program.
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Accredited, But Not For His Accounting Firm. Leaving room for your dream clients… Addition by subtraction was the name of the game for CPA Jim