5 reasons to fire bad clients

Recently I disengaged with a client. She wasn't a good fit and if I'm honest I knew this from day but I took her on because she'd been referred by one of my star clients.

She had been a client for a year. She paid me for the year and I completed her accounts and tax return, accurately ensuring compliance. She wasn't happy with the tax bill. When someone joins my client list they attend FreeAgent accounting software training, either live or they are sent a video recording and I also teach them cash management methods to avoid surprise tax bills. She wasn't committed to listening to either of these big tips and wanted to do things her own way. She never embraced the software and stuck with her own spreadsheets.

Each February, following the very busy January self-assessment season, I review my pricing. This year I did this with the help of Louise Ball of Eleven Accounts: so much more than a bookkeeper! Sole trader prices increased by ￡2.50 + VAT per month this year.

I emailed this client to ask whether she wanted to pay annually again or gave her the option of paying monthly this year.

She replied to ask if we could have a call before the tax year end. I sent her the link to book a call (this link is sent out to clients regularly in my newsletter... but she wouldn't receive that as she had unsubscribed). She booked a call.

I asked again whether she wanted to pay monthly or annually.

She replied and said monthly please.

I sent her the March invoice.

She replied and said the following:

1. She wasn't willing to pay me any more money until after the call.

2. She wanted to understand why last year's tax bill was so high (worked out at around 11% of income + POA).

3. She wanted her 23/24 tax return to be filed ASAP after 6th April as she was buying a house.

4. She wanted to have the call before paying me because depending on how the call went, she would decide if she wanted to continue working with me.

I saved her the job of deciding and disengaged, consulting my Denise Duffield-Thomas books for help with the email wording.

These are my 5 reasons for firing bad clients:

1. They don't deserve you because they don't value you. If a client doesn't see the relationship that you have with them as a partnership then it's not going to work well. If they think they are paying you so you are a slave to their every need, its not right. Some small business owners just don't like accountants and they see us as a necessary evil, I do not want or need that kind of client and neither do you.

2. They sap your energy. And you could be spending this energy on other clients or on your family, friends and hobbies. Not worth it!

3. They won't change. You can spend time advising them, giving them helpful tips on how to succeed but if they don't value, trust or like you, they won't listen. It's a waste of everyone's time.

4. They make you miserable and this affects how you are with those around you. You know the ones: you dread the calls, you see their names in your emails and wince.

5. There are good clients out there who can replace these bad ones but you need to make that space for them. Fire them and start working with only the ones who light you up, whose calls you look forward to and you enjoy helping.

In summary, give yourself the freedom of reserving energy. My bad client could be another accountant's dream client so I'm also giving her the freedom to find her ideal accountant.

Who will you be firing in the next 3 months?