you can’t win with lowballing

when to let the next accountant take the losses.

ed mendlowitz
202 questions and answers: managing an accounting practice

question: a client of 10 years was paying a fixed fee that was now a little less than half of our time charges. also, there had been a gradual scope creep with additional services being forced on us without any extra fees.

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the cpa had not received an increase in six years because of the client’s constant complaining that the fee was too high. the client just told us they had a quote from another firm that was half of ours, and said if we didn’t match it, they would leave us. what should we do?

response: i hate to advise accountants to drop clients, but in this case there is no choice. there is no future with that client! so, the client was told they could not lower the fee at all.

p.s.: when the cpa spoke with the new accountant it seems she was not told all the work that needed to be done – she will find out soon enough!