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• # 73646
• Mon 15 Aug 2011 11:20 PM

At which point do you decide to cease acting on behalf of a client?
 I have been chewing over this for about 4 months now about a particular client of mine that I met in December.  Unfortunately they are extremely disorganised and over the past 8 months it has not improved - in fact I think they have got worse.
I am constantly asking for information in person, by telephone and by email and they never get back to me. They are responsible for paying suppliers but do not provide me with the invoices. I have asked repeatledly for bank statements for the bank reconciliation and I havent received any since mid-June. I visit the premises every week to collect paperwork, most of wich I have to hunt around the premises for - and I don't just mean the office. Theres the beer store, cleaning cupboard, kitchen. flat...
The weekly wages are a nightmare. What started off as me receiving an email with the hours and emailing back the reports/timesheets etc has turned into a bit of a fiasco.I have to collect the timesheets, scan them into the computer and email them to her at home.I  end up having to call her to confirm the wages because she doesn't get back to me. She says she has had printer problems both at  home and business premises for over 2 months now so I have to drop off the payslips and cash analysis reports etc - and they are not exactly on my doorstep.
They haven't been keeping up with HMRC PAYE & NI payments despite repeatedly providing them with the necessary details to pay by Bacs - I even sent the link to HMRC BillPay but was too complicated for them to complete!?
The husband also has a business which his wife acts as point of contact/administrator. I complete their cashbook for VAT purposes and VAT period ending 31st May still is not complete.I have been bookkeeping for her husband for almost a year now and no VAT return has everbeen submitted on time as they don't provide me with the information I need. It took 6 weeks for them to drop off the paperwork but I am still missing quite a few invoices and a bank statement.I have already sent 8 separate reminders asking for this information and I am still waiting.

Unfortunately this is one of my biggest clients which is why I haven't already walked away however this situation is preventing me getting on with other more productive work and I have already refused new clients because of it. I am meeting with them on Wednesday and will raise these and other issues I have but I still have this niggling feeling that they won't listen and I should just walk away. I would really appreciate some feedback from anyone who has experience of this.
Many thanks in advance.
Angie

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• # 73647
• Tue 16 Aug 2011 07:34 AM

I think for any bookkeeper in practise this will be one of the toughest questions, when do you call it quits with a client?

Personally, I would walk away when it started to cost me, either in terms of money, or my sanity.  When I take on a new client I give them a written document of what I expect them to do, and what they can expect of me.  This is detailed right down to how I want to receive their paperwork and acceptable timescales.  

If they fail to meet timescales, then I can't guarantee that the work will be done on time for returns such as VAT.  Though from your outline, they dont seem to care about this.  Secondly, I also say that if the dont provide the information in the prescribed manner then their fees will increase, due to an increase in my workload.

If you're happy to continue, why not increase your fees to compensate for the extra work.  The worst that will happen is they will say no and leave, and as you are already thinking about this, you have lost nothing.

You do need to spend some time working to gain new clients.  Things will appear much more clear when you are not relying on one client for your income.

Kris



Edited at 16 Aug 2011 07:35 AM GMT

• Kris McCulloch
  www.ayrshireaccountancy.co.uk
  
  Winner - BKN Most Innovative Accountancy Firm 2012
  
  Latest Blog Post: Bookkeepers Award 2015

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• # 73949
• Tue 30 Aug 2011 09:54 PM

Hi Kris
Many thanks for your reply. I think you have hit the nail on the head!

'When I take on a new client I give them a written document of what I expect them to do, and what they can expect of me.  This is detailed right down to how I want to receive their paperwork and acceptable timescales'

I have provided clients with engagement letters outlining the work I will do for them but other than payment terms I have not stated what I expect of them. I think many clients expect you to bend backwards for them but don't realise that it is a two-way street.
Your right - this particular client couldn't care less if they miss HMRC deadlines however I am a stickler for them and somehow I feel I have failed when they are not met.
I met with my client last week and explained my predicament and although it was received with a sympathetic ear I don't think things will improve. I charge this client by the hour and I did advise them yet again that there are various measures that they could implement which will reduce my monthly costs.

Thank you again for your words of wisdom. Its always good to get someones else opinion.

Angie

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• # 74028
• Fri 02 Sep 2011 05:15 PM

Hi Angie

I terminated my relationship with a client just a couple of weeks ago after many months of unsatisfactory responses from them. SImilar to your client, they just didn't seem able to provide me with any information, despite me making it as easy for them as possible. It got to the point where I was spending a substantial amount of time chasing them for information and not receiving it. I just decided that the time I was spending on them could be much better spent on gaining new clients and relationships so I terminated. They weren't terribly surprised and are now paying an accountant £140 per hour for bookkeeping services!! Good luck to them but I don't need the stress.

I do understand what you say though, when they are a big client it's a harder decision. Can you afford to continue business without them or do you need them financially? If you do, then have you the time to search for other clients whilst still maintaining the relationship with them? Then once you have "replacement" clients you can ditch them without suffering.

Perhaps incentivising them financially might make a difference - it works for HMRC!! Just thinking aloud on that one...

Good luck whatever you decide
Clare
 

• Bruton Young Bookkeeping
  
  

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