Agreed a time basis for providing my services yet constant pestering from him. His work has also dropped from two limited companies to just producing two employees payroll once a month as he is currently running one of the companies into the ground. The other he is keeping does not require as much bookkeeping.
Hi, I have a few awkward clients, giving me the run around, constant pestering etc, but regardless of the amount of bookkeeping / service required, they are a customer paying for a service that I am happy to provide. Of course I get frustrated, screaming point at times but nevertheless I keep with it.
I understand your frustration, but surely some work from your client is better than none and he may be concentrating on building the company he is keeping up, you would be in a good position if the workload increases !
If you are really intent on dropping him, tell him straight, there is not enough in it for you. Brutal but honest.
I have done it a couple of times. One of which, the relationship was just not working and we mutually agreed. Another was where a client wanted to Phoenix his company for the second time in 5 years. I was not comfortable with this and said that I could not act for the new company. In all cases I give a formal disengagement letter and apply the appropriate professional clearance procedures.
I agree with Julie, be brutal but honest - worst case scenario maybe apply a minimum fee!
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Following on from the last couple of posts, With one of mine where it was a particularly difficult gig and the time taken was disproportionate to the fee's (it seemed obvious to me from the costs to turnover that the client simply could not afford to pay more) I doubled my monthly charge expecting them to go find a cheaper alternative.... The client happily paid it!
Other clients with huge turnover's I've applied lower than inflation rises on and you would think that I had abducted one of their children!
On the time basis of why you are droppng this client it seems to be a fact of life that the the smaller the client the more that they perceive you as both a friend and an integral part of their business rather than a seperate business.
If you dump every client who thinks that calling in the middle of the evening for something that could wait or swaps and changes their requirements at little notice you soon wouldn't have many clients left.
Try to look at this as an opportunity tio manage your client. Practice your sales techniques on him to upsell services as you are in the perfect possition to know what is missing from making their business more profitable.
Try to change the client from seeing you as an overhead to seeing you as someone who actively increases their profits such as via management reporting or identifying cost issues or general cost reducing improvements.
I would only dump a client by giving them no option to stay on the grounds that if I didn't they would be leaving via the window rather than the door. (using fee's puts the ball in their court rather than being a straight "I'm not working with you anymore").
As a footnote, before upsetting any client always remember that do a good job and they are out there as your unpaid sales force. Upset them and not only will they not push your business but will actively discourage others from doing so.
Just a few things to consider before losig the client.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If I dumped every client who annoyed me I would only have two left! Believe me Ive been very tempted. But I charge for every time they call/email and mither - so whilst they may be a pain, its earning me money. Ive worked in other jobs and they are no different in that they all have annoying clients Im afraid. Being on an hourly rate then just charge him - I charge a minimum of 5 minutes even if they are only on for one, as its disruptive. (Solicitors charge every 6 minutes, which is where I got the idea!) Plus you never know what is round the corner as whilst he may be scaling down, you dont always know what they are scaling up elsewhere as sometimes, despite our best endeavours, they do treat us like mushrooms! I was ready to dump one for the exact same reason but Im now on my third referral from them and they say they have more!
But if you really need to - try a doubling of the fees and if that doesnt get rid and you still want to then I agree with the others be brutally honest (etc)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Well if the relationship has broken down very rare is it that you can repair them, this is just my opinion of course.
I have been in this position more than once and am now getting a dab hand at doing this. What I look at now is first what type of relationship to I have with them, 2nd do they pay and 3rd can I add value to their business by working as part of their team along side them or are they just doing what they want to do and ignoring any advice given.
If all 3 of those points fail get rid of them fast and don't be afraid to tell them why! If you don't think it is worth just 2 employees on the payroll per month as you would have preferred the bookkeeping but unfortunately there isn't any bookkeeping available anymore due to his new circumstances then I would say ditch them, as in the end you will always resent doing their payroll.
Give them plenty of notice and don't leave them in the lurch. If however you think at a later date there may well be a chance of bookkeeping then hang on in there.
Again do what Joanne says and double your fees and see what they say if you want to keep them, for all you know you might be too cheap anyway.
Well I think I am turning into Bob.....Adding value to the clients business.
That sounds familiar. For those of you that haven't been around long, Bob use to come on here a lot and always talked about adding value. I can really see where he was coming from as my business model over the 18 months has really changed.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
