Hi
My brother in law referred me to a client of his that needed an accountant.
I met the client and his books were in a mess but I quoted him for the catchup work and on going monthly fees. I quoted quite high because I didn't want the client (I know I should have been stronger and just said no). However the client accepted the fees but no signed quote was received and I never issued an engagement letter. A couple of months passed and none of the information I requested from the client had been forth coming. However I have now had a follow up meeting and REALLY don't want this client. HMRC issues etc and I have concerns with their ethics not only with regards to HMRC but in life in general.
The problem I face is that he is a large customer for my brother in law and I dont want to jeopardize his business but professionally I can't take on a client like this.
Any advice on how to approach this delicate matter would be appreciated.
Thanks
Replies (20)
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Conflict of interest
Perhaps it has suddenly dawned on you that there would potentially be a conflict of interest as this guy is a client of a close relative and so, regrettably, in all the circumstances, you feel obliged to withdraw your offer to act for him!
David
Or
During the last couple of months you have taken on more work, and unfortunately as you hadn't heard anything, you assumed he no longer needed your services.
Family First
Talk to your brother-in-law first and find out from him whether there is any potential problem for him if you just tell your prospective client to go do one. If it's not a problem for him then just tell the guy you don't want to deal with his problems. If it is a problem for brother-in-law, perhaps you could just jack up the likely fee levels 'now you're fully appraised of the problems' and the time you'll spend in making things squeeky clean. Nothing's been signed off on yet so there's no reason for you not to change the landscape.
similar problem....
I have a similar problem and have drafted the following;
"Oh, why don't you just *!$% off, you &%*!"
What do readers think?
AndyC555
Not professional; risk of having to face professional standards review; suggest rewording. Regards
Say No!
One piece of advice which I was given many, many years ago and which has stood me in such good stead: never be afraid to say NO. Politely and firmly, and as several people have suggested above. It's never worth the stress, ulcers etc - life is definitely too short to have to deal with C3 clients - unless you are a complete [***] :)
Undesirable client
Honesty is probably the best approach so how about
"Whilst no one likes to loose business, I know that I cannot offer you the service you really need, so its in both our interests that I stop acting for you.
If I continue to act you will not get the best advice you need and I would be not only letting you down but my brother as well"
Y
C3 Client
Not ignorance as this term may no longer be used...
A C3 client is the opposite of an A1 client, who is the best kind of client - good records, pays well and on time, etc etc.
These categories were descriptions coined by SWAT (South West Accountancy Training?) many years ago. They reckoned that you should always aim to have A and B clients but in a practice where life was becoming clogged up with C3 clients you should try to get rid of them or double your fees (I hope I am remembering this correctly!). Clearly I remember something from this course, as I have always tried to follow these guidelines, but specifically I do not like C3 clients - they take up far too much time, their records are rubbish and they take ages to pay. Avoid them - unless you can make some money from them!
TELL
tell him you have post a January trauma disorder and you are on medication and need to readdress your stress levels on doctors orders...but you know of a good firm that will help him out........then send him to Mr Dodgy
@prue
I review clients as C3 when
1) the workload is always double what it should be
2) it takes twice as long as the client can't or won't answer queried
3) take ages to pay
I wondered during 2011 how I could be working so many hours but yet not earning enough! During 2012 I carried out the simple analysis above and realised which of my clients(too many!) fell into the above.
Scary decision to move away but it has been for the best as I have had time to network and find new clients who I haves managed to "train" a bit from day 1
@ Levelheaded1903... Brilliant move!
This completely proves what was recommended on the course I attended so many years ago! Your definition is spot on. The course lecturer was recommending classifying all of ones clients in this way across this ABC 123 grid - and then ditching most of the C3 clients. I am SO glad that it worked for you. 'Training' clients who actually want to improve is always worth doing too... just try not to do it for nothing! Happy 2013 :)
Out of interest
"The course lecturer was recommending classifying all of ones clients in this way across this ABC 123 grid"
Out of interest, can anyone remember what counted as A, B and C and 1, 2 and 3 when classifying clients?
We use the following parameters to rate clients
Name
Client rating re profitability
Profits
50% of fees A rating
25 to 50% of fees B rating
0 to 25% of fees C rating
No profits D rating
(If rating is D,
Does the client resist any increase in fees to reflect additional work they have requested , or change the scope of work but won’t pay additional fees for the additional work you are forced to do
It’s clear that the client doesn’t appreciate your time is valuable
Does the client ask for ‘gut feel’ advice, rather than fully researched advice, or seek additional advice but is unwilling to accept that this will increase your fees
Are they huge users of free support time
Do you regularly have to chase the client to provide information or other responses to your enquiries, or regularly miss meetings.
Are they are rude or abusive to you, your partners and/or staff
Does the client refuse to take on board your advice in general & about how to keep their records
They do not pay your fees in accordance with your settlement