At the Access Group, we are here to help. As a provider of fast and powerful software for accountants in practices of all sizes, from start-ups to the largest firms, we understand how vital client relationships are to the accounting industry.  

To help you, we have pulled together this article to help your accounting firm handle difficult clients. After reading it, you should know how to better connect with and understand difficult clients more successfully. 

What is considered a difficult client? 

Firstly, we need to define what a difficult accounting firm client is to identify best how to handle a problem.  

We understand that a situation with difficult clients can put strain on accountants and their resources. The repercussions of an unresolved difficult client relationship can be poor reviews of your accounting firm, enjoyment of your work and, in some cases, employee burnout. 

Here are common types of client behaviour accounting firms may encounter: 

• Poor communication: the client needs to respond to requests for information or documentation, requiring frequent follow-ups. 
• Unrealistic expectations: the client's expectations of the scope of work or timelines involved may be unrealistic. 
• Failing to pay invoices: if your client consistently fails or refuses to pay invoices for your services on time, this can quickly sour the accounting-client relationship. 
• Lack of trust: clients who are sceptical or untrusting of your expertise, making it harder for you to work together and provide value for your client's finances. 
• Aggressive or confrontational behaviour: this is where a client is abusive and yells at you or a member of your staff. In these circumstances, salvaging a relationship with your client may be challenging.

The importance of dealing with difficult clients 

The accountant-client relationship is fundamental to accounting firms' success, with increasing competition demanding that accountants focus on nurturing their client base. Hence, they are less vulnerable to persuasion from competitors.  

Here are several reasons why dealing with difficult clients is essential: 

• Building trust: Trust is an essential component of any business relationship, and for accountants, who advise customers on their finances, it is imperative to build and maintain trust with their clients. Dealing with difficult clients can help accounting firms to establish long-term relationships and lead to repeat business. 
• Client retention: A sobering statistic from HubSpot is that 33% of consumers would consider switching companies immediately after poor service. Retaining customers is crucial for accountants. Handling disputes with clients could increase client loyalty, reduce churn, and generate positive referrals. 
• A word-of-mouth business: We all know that satisfied clients are more likely to refer others to your accounting practice. Dealing with difficult clients effectively can lead to new business opportunities for your firm and help you grow your client base. 
• Building closer relationships: A study by ICMI found that customer satisfaction ratings increase by 33% when a complaint is handled correctly. Addressing accounting clients' grievances quickly and effectively means that accountants can better understand their client's needs, financial goals, and any challenges they may face. Working closely to clients and getting to know them better will help accountants to strengthen their position as trusted advisers. 
• It makes commercial sense: According to a study by NewVoiceMedia, US companies lose approximately $75 billion annually due to poor customer experiences, showcasing the importance of dealing with difficult clients. Strengthening accounting client relationships will lead to increased client retention, cross-selling opportunities for your team, and upselling of accounting services for your firm. 

Clients are the heart of everything you do, which is critical to the success of your accounting practice. Download our eBook on how to Become a client-centric accounting practice, and learn how cloud accounting practice management software can lift client interactions for you and your team. 

How do you deal with difficult accounting clients? 

Dealing with difficult clients in accounting can be a challenge, but here are some simple tricks that may help: 

Keep calm and carry on 

According to the psychology of human interaction, people will tend to mimic the emotional signals of those they are interacting with. Therefore, an accountant experiencing aggressive clients screaming down the phone may feel an impulse to meet that anger with more anger, which could escalate the situation and put your reputation at risk. 

It is essential to keep calm and collected when handling customer conflict, even in those more complex interactions where emotions are heated. If you take a few deep breaths and adopt a sense of calm when facing hostility, you can de-escalate the situation. When met with composure, angry customers will more likely adopt your tone and volume and calm down. 

Understand customer concerns 

Often, a difficult customer wants to be heard, so take a moment to have a conversation and understand their problem.  

Empathy may be all that is needed to solve the issue at hand. Try listening actively and empathising with their situation. Ask open-ended questions to gain more context, and clarify their concerns to help you get to the root of the issue and provide a solution much quicker. 

Communicating clearly and effectively 

Used by HR professionals worldwide, the Thomas-Klinmann Model of conflict resolution is a framework for understanding and managing conflict. It identifies five conflict-handling styles: competing, collaborating, compromising, avoiding and accommodating. The model suggests that individuals are naturally inclined towards one of these styles, and understanding these styles can help accountants come up with a more effective strategy for difficult customers. This model emphasises the importance of clear communication in conflict resolution.  

Clear communication is vital in dealing with difficult clients. Once you understand the client's concerns, ensure you are communicating about your boundaries. Define what you can and cannot do and what is not included in your services. Be clear about your policies, timelines, and deadlines. This will help manage the client's expectations and reduce misunderstandings. 

Offer solutions to problems 

When dealing with a difficult client, offer solutions to their concerns. This isn't about an admission that you're to blame; it's about cutting to the chase and resolving the problem in a stress-free way.  

• When you're wrong: be upfront and accountable for your mistakes and provide a solution for the customer on how you will make it up to them. 
• When the client is wrong: be respectful but hold your ground. Set clear expectations with frustrated clients and explain any changes. 
• When no one is to blame: in circumstances where communication breakdown is to blame, give your client alternative communication methods, such as email updates, a regular phone call or frequent check-ins through your client management software, for more transparency. 

Know when to say no 

While it's essential to be flexible and accommodate your client's needs, knowing when to say no is crucial.  

If a request is outside the scope of your services, or if you can't fulfil it, be honest and let the client know. In these customer scenarios, accommodating unrealistic requests from demanding clients can lead to more problems for your accounting firm later. 

Know when to end the relationship

According to Hootsuite CEO Ryan Holmes, there are situations where it may not be conducive or profitable to mend a difficult client relationship, mainly if their demands are eating into your bottom line.  

Sometimes, it may be in your best interests to end the relationship with unhappy clients, and if you have exhausted every avenue for resolution, it might be time to cut ties. These are the types of clients for where it is appropriate to do this: 

• A problem client who is taking up a considerable amount of your time, more so than other clients for similar work; 
• An angry customer with a consistent level of hostility despite your best efforts to de-escalate the situation; 
• The customer refuses to pay for services; 
• Critical clients who are always unhappy or can waste time with constant complaints despite your best efforts. 

Before ending the relationship professionally and on as good terms as possible, consider the following: 

• The legalities: have you looked into the termination terms within your contracts? Often a notice period is required before ending a relationship with problem clients such as 30 or 90 days. It may be best to speak with a lawyer or another professional before parting ways to see where you stand. 
• Winding up important work: wrapping up a customer in the middle of a job will likely cause more problems for you or your team down the track and may be detrimental to your accounting firm's reputation. Try and finish any contracted work before moving on. 

Strategies to avoid difficult clients in the future 

Dealing with difficult clients effectively and professionally is essential for accounting practices in Australia and New Zealand, focusing on maintaining a positive reputation, minimising stress and saving time. 

Here are a few tips to help accounting practices avoid difficult customers in future: 

Defining your ideal client 

There are many ways to define whether a customer is a good fit for you. One of the best ways an accounting firm manager can handle difficult clients better is by creating a client profile. 

Client profiles can help your accounting practice to double down on attracting ones who will generate more revenue for the business. 

Our recent study highlighted that approximately 1 in 5 (22 per cent) of surveyed accounting practices in Australia had a completely defined client profile. It also found that 1 in 3 firms specialised in specific client segments, such as: 

• ECommerce and retail 
• Agriculture 
• Building and Construction 
• Hospitality 
• Family-owned businesses 

This further reinforces the opportunities a clearly defined customer profile can bring, with options to specialise in niche markets, industries or professions, to help unlock further efficiency, referrals and overall business growth. 

Meeting client expectations 

According to CPA's brochure on client relationship management, there are three steps to measure and exceed the expectations of your clients: 

1. Know what your client expects; 
2. Quantify what your client expects, and 
3. Check in regularly to ensure whether those expectations are being met. 

Establishing clear expectations from the outset of any engagement, including the scope of work, timelines and fees, can help ensure clarity with your customer later. 

We all know the importance of customer satisfaction in accounting. Check out our article on building strong and lasting client relationships here: Mastering client relationships for accounting practices. 

Conduct due diligence 

Before engaging with new clients, conduct due diligence to evaluate their financial health, industry reputation, and overall fit with your firm.  

Due diligence can include reviewing their financial statements, credit reports, and online ratings to ensure they align with your firm's values and objectives. 

Pictures are worth a thousand words

Accountants are accustomed to looking at numbers all day, but they may need to make more sense to a customer, and number-centric conversations can lead to misunderstanding and even frustration.  

Presenting complex information in simple terms that anyone can understand will have a more significant impact. People love visuals, so consider offering financial data using a graph, pie chart or a simple balance sheet. This customer service approach will help boost client engagement and open the doors to more meaningful conversations. 

Our accounting practice data management and analytics software has flexible visualisations to help you provide valuable business improvement advice to your clients. 

Consider branching into client-focused accounting services 

If it is your goal to become a more client-centric practice, you could broaden your services to be more responsive to client needs and expectations. 

Many accounting firms have done this, incorporating the following customer service initiatives into their practice to handle difficult or indecisive clients, in addition to more traditional accounting services, including: 

• Annual planning sessions: Every year, arrange a meeting with your client on the strategic direction of their business. 
• Site visits: Arrange regular visits to your client's place of business to understand its long-term sustainability and room for growth. 
• Regular business meetings: Arrange monthly or quarterly touchpoints with your clients to discuss their business's financial performance, growth and development. 

Work on your soft skills

Emotional intelligence is a core soft skill for accountants, considered by ACCA Global to be one of the keys to success in accountant-client relationships. 

Another soft skill at the heart of accounting practices is communicating clearly, effectively and efficiently. We cannot stress enough that by continuously working on new ways, you can improve your communication techniques when dealing with difficult customers. 

Consider working on your accounting soft skills as part of your Continuing Personal Development (CPD). Many free CPD resources for accountants are available to help them hone their skills every year. 

How accounting automation bolsters client satisfaction 

Accounting automation tools are becoming essential as we transition to a new era where flexible working arrangements are normalised. 

In Australia and New Zealand, accounting practices are already using accounting automation to eliminate manual work required with client engagement, such as: 

• Online calendar and appointments  
• Text message reminders  
• Marketing automation  
• Workflow automation  
• Invoice payments 

Accounting automation plays a crucial role in the enhancement of accounting client relationships. Here are just a few reasons why: 

• Improved communication: Automation streamlines how accountants communicate with clients, ensuring that messages are sent and received promptly.  
• Time-saving: Automation removes manual intervention for routine administration, meaning they can be more present when adding value to client relationships. 
• Enhanced accuracy: By automating repetitive tasks, such as data entry, accounting automation reduces the risk of errors that can lead to misunderstandings or damaged client relationships. 

For further tactics on accounting automation and how it can support the development of client relationships for your practice, read our guide: What does automation mean for accounting practices? 

Why do you need client management software for your accounting practice? 

Accounting client management software with an in-built client portal lessens addressing client problems leaving them to feel frustrated and, in turn, making headway for more meaningful accountant-client relationships. 

With client management software, accountants and their clients have complete visibility of all documents online that have been created, signed off or are still pending signature.  

The in-built client portal offers digital signing that speeds up job completion. Automated email reminders eliminate the need for accountants to manually follow up with those clients who are proving difficult to chase. 

Some additional benefits of client management software for accountants include: 

• Improving client relationships by providing more efficient, real-time service;  
• Empowering clients to self-service with secure access to documents at any time; 
• Saving time by significantly reducing document handling and processing. You'll dramatically cut down on emails and save money by not having to post documents;  
• Delivering a more professional service by branding your portal with your logo, and 
• Staying up to date with automatic notifications when files are uploaded or sent. 

A solution to keep clients happy 

To summarise, you should define a difficult customer and consider the repercussions for your business if an issue is not managed correctly. You need to follow simple steps to manage your client relationships effectively because these will be effective strategies to help you resolve future conflicts. 

You will also need to consider how your tech stack can help you to deepen your customer relationships through our growing reliance on automation with accounting practice software and client relationship management software, which will help you communicate and collaborate with clients and offer an enriched client experience. 

We have helped many accounting firms implement client management software, from start-ups to large accounting firms. We have a structured implementation process and the experience to guide you. This will ensure your new client management software delivers maximum benefits, such as building closer client relationships. 

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To learn more about our client management software for accounting practices, and start your journey towards enriching your client relationships, book a demo or contact us today.