Dealing with difficult clients is an inevitable part of the job for most tax and accounting professionals. However, these interactions, while challenging, don’t have to derail your firm’s operations or morale. In fact, identifying difficult clients and how to better serve them is an important step in unlocking new opportunities for growth.
But how do you uncover the potential in your most challenging clients? Let’s take a look.
Strategies for handling difficult clients
Clients who frequently have complex questions, resist standard processes, or require extra attention are often the ones who stand to benefit most from tax advisory and consulting services. By recognizing these patterns early, your firm can potentially shift the relationship. In an advisory services arrangement, tax and accounting professionals are compensated for the business advice they provide and have an opportunity to build client relationships based on their clients’ specific needs.
Consider the following strategies:
- Set expectations early and often. Establishing clear boundaries and managing expectations from the beginning is critical in managing difficult clients. Many client frustrations arise when expectations aren’t clearly defined or when scope creep leads to stress and confusion. Practice Forward provides templates, onboarding processes, and scripts that help establish firm boundaries in terms of service scope, deadlines, response times, and pricing. By putting these expectations in writing and reiterating them periodically, firms reduce the likelihood of misunderstandings and help clients feel secure knowing what to expect.
- Boost communication. One of the most effective first steps is to enhance communication with clients—this includes listening actively, clarifying misunderstandings quickly, and maintaining a professional yet empathetic tone throughout the engagement. Tools and frameworks available through Practice Forward can help firms implement consistent communication protocols that align expectations. An experienced business advisory consultant will provide support and guidance, share best practices, and offer personalized recommendations to best support your clients.
- Try different communication methods. Not every client responds best to email or phone calls—some may prefer video meetings, while others appreciate detailed summaries through client portals. Offering multiple communication channels allows professionals to meet clients where they are most comfortable. Practice Forward encourages a tailored communication approach, giving firms resources to help evaluate what works best for different client types and to automate elements of communication for greater efficiency and consistency. Engage clients and communicate with complete clarity using templates that provide a starting point to customize with firm-specific details and branding.
All that being said, in any healthy relationship, both parties must understand boundaries, show mutual respect, and effectively articulate their needs. Not all clients are an ideal fit for your firm. Sometimes, this means letting go.
Identifying ideal clients for advisory services
Introducing advisory services to your clients requires a strategic and thoughtful approach. Consider first engaging with clients who have complex financial needs or have expressed interest in strategic planning. These clients are more likely to see the value in advisory services.
During these conversations, it’s important to clearly explain how advisory services can help them achieve their business goals and improve their overall financial situation. Be specific and illustrate potential outcomes unique to their situation. It might even be a good idea to offer an introductory advisory session to showcase the benefits of advisory and demonstrate the impact of your expertise.
Remember: Not all clients are an ideal fit for advisory services. Sometimes, this means letting go of clients who don’t fit the advisory framework.
Cutting ties with difficult tax clients
Firms that continue to serve challenging clients just for the sake of the relationship should think again. These are tax clients who have become too much work for the amount of revenue they generate, and, in these instances, it may be best to cut ties with the client.
Consider this: The time and energy you spend dealing with challenging clients is time that can be spent bringing in new, more profitable clients. Staff will also feel less stressed.
To identify challenging clients and decide whether to sever ties, ask yourself:
- How much time does the tax client spend with the firm?
- How many services do they currently utilize?
- Do they pay the bills on time?
- Do they dispute or argue over fees?
- Does the firm make a good recovery on the fees?
- Can the firm add further value to its business?
If the relationship is not mutually beneficial, it may be time to cut ties. The Practice Forward methodology dedicates significant attention to defining your ideal client profile before beginning your advisory services. This proactive strategy helps prevent potential issues from emerging later in the relationship.
Are you ready to turn client challenges into opportunities?
Difficult clients can be a testing ground for advisory service offerings, improving client education, and identifying gaps in service. With Practice Forward, your firm can start offering proactive solutions tailored to client pain points, potentially transforming dissatisfied clients into loyal advocates.
To learn more, check out our webcast on how to handle difficult clients and build the advisory practice of your dreams.
