There is always a lot of encouragement to ditch the PITA (Pain in the … Assets) clients in order to focus on our best clients but few accountants seem to get around to doing this.
I recently coached a business owner through dropping his least profitable clients: which ones to drop, what to say, and how to refer them elsewhere if appropriate. He lost 22% of his turnover but only 6% of his profit. Not only that but he has stopped working weekends.
As part of the exercise he has also set out his ideal clients in terms of minimum size and complexity so that his team can filter enquiries and they should only take on good quality clients from now on.
Give it a try and let me know how you get on.
Update: A year on this businessman has set new criteria for their ideal client and is carrying out a second cull.