removing clients isn’t just about profitability—it’s a firm-wide morale booster.
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accounting influencers
with rob brown
with over 35 years of industry experience, jean caragher has witnessed the profession’s transformation, noting that marketing roles in accounting firms are now more strategic and influential than ever.
one recurring theme in the discussion is how accountants can refine their client portfolios by letting go of clients who no longer align with their firm’s goals. caragher emphasizes the importance of defining an “ideal client” and conducting client analyses to identify which relationships might be holding firms back. she notes that firing clients isn’t about being dismissive but about making room for more profitable and fulfilling opportunities.
caragher offers practical advice on transitioning clients. for clients not fitting the firm’s strategy, she recommends raising fees as a first step. “you’d be surprised how many clients are willing to pay more,” she says. for those still unwilling to adapt, transitioning them to other firms can maintain professionalism while creating space for better-aligned clients.
letting go of problematic clients is not only good for business but also for employee morale. “every staff member has at least one client they’d love to fire,” caragher shares. removing these clients allows firms to focus on high-value relationships and provides employees with meaningful, less stressful work.
caragher encourages firms to approach client transitions in stages, such as analyzing specific service lines or industries. she also highlights the benefits of using data-driven metrics—such as revenue potential, risk, and payment history—when deciding which clients to retain or let go.
addressing the emotional difficulty of firing clients, caragher stresses that these decisions benefit both firms and clients. “accountants want to help people, but they also need to experience fulfillment in their work,” she explains. when firms prioritize their ideal clients, everyone, including employees, experiences greater satisfaction and success.
caragher offers a rallying cry for accountants hesitant to refine their client portfolios. “the first step is to start,” she says. whether it’s raising minimum fees, conducting client analyses, or transitioning a small group of clients, every action helps build confidence and paves the way for a healthier, more profitable practice.
10 key takeaways
- marketing roles in accounting firms have shifted from short-lived positions to strategic, influential roles, with average tenures now approaching five years.
- firms should define their “ideal client” based on financial performance, working relationship quality, and alignment with firm goals. this helps ensure better client relationships and profitability.
- accountants should regularly analyze their client base to identify underperforming or misaligned clients. removing these clients allows firms to focus on high-value opportunities.
- decisions about retaining or transitioning clients should be data-driven, considering metrics like revenue, payment history, and the complexity of the work.
- sending a “raise the fee” letter can test a client’s commitment to the firm. many will pay more, while those who leave often create the desired space for better clients.
- removing problematic clients improves employee satisfaction by reducing stress and providing meaningful work. it’s a morale booster across all levels of the firm.
- when letting clients go, accountants should maintain professionalism by recommending alternative providers, ensuring a smooth transition.
- client transitions don’t need to happen all at once. firms can focus on specific service lines, industries, or client types to phase in changes systematically.
- many accountants hesitate to let clients go due to fear of losing revenue or hurting feelings. clear communication and a focus on long-term benefits can help overcome these challenges.
- caragher emphasized the importance of starting small, whether by raising fees, conducting a client analysis, or transitioning a few clients. gradual action builds confidence and sets firms on the path to success.
more about jean caragher
before creating capstone marketing in 1998, jean caragher paid her dues as a marketing director working in the trenches with multiple accounting firms. as a result, she knows what you’re going through. totally. then, one day, she was overheard saying, “wouldn’t it be great if i could do this for cpas all over the country?” and so she did. caragher has written or been quoted in hundreds of articles on professional services marketing appearing in the journal of accountancy, accounting today, the cpa insider, seasonality success, the practical accountant, cpa practice management forum, bowman’s accounting report, cpa marketing report, professional marketing, marketrends, partner-to-partner advisory, and other publications. she is a popular and well-known speaker and has made presentations for the aicpa, association for accounting marketing, pdi global, association of accounting administrators, american women’s society of cpas, and many accounting firm associations and state societies. jean also conducts a variety of marketing training programs for cpa firm partners and staff.