Have you had enough of unorganized clients who can’t get their paperwork together on time, or worse – expect you to clean up their messy finances at the last minute?
You’ve got enough on your plate without clients who drain your time and resources with no prep and little appreciation. You just don’t need that kind of hassle!
You might be tempted to send a message in all caps saying, “YOU’RE FIRED!” And honestly? We wouldn’t blame you! But, there’s a process to follow to keep things professional and protect the great reputation you’ve built for yourself and your firm.
The good news is, the process is surprisingly simple, and in a few steps, you can wash your hands of these energy vampires once and for all.
We’ll walk you through it step-by-step (and tell you how to access a CPA disengagement letter template) to help you get the job done quickly and discreetly.
Step #1 Confirm the termination in writing
Sadly, a quick email to your client to say “we’re through” won’t cut it. You’ve got to get it in writing. That means, you’ll need to draw up a formal disengagement letter that officially tells them it’s time for you to go your separate ways. In the letter, everything will be laid out in black and white to help you avoid any confusion (or annoying back and forth!).
If your contract doesn’t require you to explain why you’re ending things, it’s still best practice to give the client a bit of insight into your decision. Who knows, it might even help them improve down the road. Keep it professional, though – word travels fast, and you don’t want to damage your rep.
And if you really don’t want to get into details of your decision, you can always just say something like, “I don’t have the scope for your work anymore,” or “I’m moving into a new specialty,” or…well, you get the gist.
Step #2 Tell your client about their responsibilities
You’ll have to let your client know what steps they need to take as part of the breakup. For example, are there any important deadlines or filing dates they need to meet?
And don’t forget to tell them about the consequences if they fail to act. Will there be penalties or fines? Are they at risk of missing out on some great tax-saving opportunities without expert guidance?
Include all this in your disengagement letter so it’s all on the record (and the client can’t come back later and say they weren’t informed).
Top tip: Don’t wait until the last minute to fire your client, especially coming up to tax season. Give them plenty of time to sort themselves out or find a new pro. It’s just good form!
Step #3 Address work-in-progress and client records
It’s a good idea to outline the status of your current working relationship with your client in your disengagement letter. Yes, you’re cutting ties, but in the meantime, are there any tasks that still need to be wrapped up that have already been paid for?
If so, let the client know what’s left and when they’ll get it. If there’s nothing left to do but say goodbye, tell them that, too.
You’ll also want to clearly outline the status of any client records you have and explain your firm’s record retention policy in your client termination letter. Let the client know how they can access their documents after your relationship ends, and save yourself unnecessary hassle later.
Step #4 Include any outstanding fees
If you’ve been dealing with a client who won’t pay their bills, don’t let them off the hook now. Include a billing statement with the termination letter telling them what you’re owed. Be professional but firm. Remember, this is your final chance to settle accounts and get the money you worked so hard to earn.
Step #5 Use a trackable delivery method
Make sure the client actually gets your termination letter by sending it through a trackable service. Think certified mail, a courier, or even an email with a read receipt will do the trick. You’ll have proof the letter was sent and received, and can quickly handle any “I didn’t get it!” claims you might get from a disgruntled client.
Closing thoughts
Firing a tax client isn’t fun, but sometimes, it’s necessary to protect your time, energy, and sanity. Put these steps into action, and you’ll be able to break up with troublesome clients professionally without leaving any loose threads behind.
And remember, the right clients will respect your time and hard work. Letting go of the wrong ones makes space for the new clients you (and your team) deserve.
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