Don't Work With People That Suck! Ensuring a Potential Client is a Good Fit for Your Outsourced Accounting Firm

When a potential client approaches you to outsource their back-office accounting functions, it’s not just about them evaluating your services. It’s also an excellent opportunity to assess whether they will be a good long-term fit for you too. Here are some red flags to watch out for and green flags that should pave the way toward a successful partnership.

Red Flags to Watch Out For:

1. Lack of Understanding About Your Role

   • What They Say: "I just need you to update the books so my CPA can file taxes."

   • Issue: This statement indicates that the client does not understand or value the comprehensive services involved in a monthly accounting close. This lack of knowledge can lead to unrealistic expectations and undervaluing your work.

     
     

2. Frequent Turnover of Previous Bookkeepers

   • What They Say: "I had to fire my last three bookkeepers because they were terrible."

   • Issue: The common denominator in this scenario is the client. Frequent turnover often points to deeper issues such as unrealistic expectations, poor communication, or a challenging working environment.
     

3. Dictating Terms and Costs

   • What They Say: "I only need you to do these things and it should only take you this long and cost me this much."

   • Issue: As the expert, you should be setting the scope, timeframe, and pricing for your services. Clients who dictate these terms may not respect your expertise or business model.
     

4. Poor Personality Fit

   • Signs to Look For:

     • Not showing up to meetings on time or at all.

     • Failing to respond to emails promptly, requiring multiple follow-ups.

     • Frequently talking over you during discovery calls. This is a big one!

   • Issue: These behaviors indicate a lack of respect and could lead to a strained working relationship. A good client relationship is built on mutual respect and effective communication.
     

Green Flags for a Successful Partnership:

1. Replacing an In-House Full-Time Bookkeeper

   • Benefit: This type of client is likely to provide a more substantial account for your firm. You’ll have the opportunity to implement new workflows and tools, which can automate and streamline the accounting process. They will appreciate paying less than a full-time salary for superior quality work.
     

2. Previously Doing the Books Themselves

   • Benefit: Clients who have been handling their own books understand the effort involved. They will appreciate the time and expertise you bring to the table, valuing the freedom from wearing the accounting hat.
     

3. Referrals from Current Clients or Trusted Partners

   • Benefit: Word of mouth is powerful. Clients referred by a current client or a trusted networking partner are more likely to trust you and your process. The initial vetting has already been done, making it easier to build a positive relationship.
     

4. Respectful and Value Your Time

   • Signs to Look For:

     • Showing up on time for discovery calls.

     • Responding to follow-ups in a timely manner.

     • Providing meaningful answers to your questions.

     • Expressing gratitude, such as saying, "Thank you for your time."

   • Benefit: These behaviors demonstrate respect and a professional attitude, setting the stage for a positive and productive working relationship.
     

Conclusion

Life is too short to work with people who drain your energy. By carefully evaluating potential clients, you can ensure that you’re building a roster of clients who respect your expertise, value your time, and contribute positively to your work environment. This approach not only fosters long-term professional relationships but also enhances the overall success and satisfaction of your accounting firm.