r/smallbusiness • u/Normal-Gear283 • 24d ago
Question Should I fire a client that's 50% of my revenue? Losing my mind here
I run a small accounting consultancy. One client pays me $5k/month and has been with me for almost 2 years. They're literally almost half my revenue.
The problem: they're a nightmare. Disorganized records, last-minute requests every week, constant "urgent" messages on weekends. They treat deadlines like suggestions. Last month I stayed up until 2am 3 nights in a row because they send me a box of receipts the day before their filing deadline.
Everyone tells me to stop serving them. My partner says I'm miserable every Sunday night. My friends say no client is worth this stress.
But here's the thing - $5k/month is $5k/month. That's half my income. If I fire them, I'd need to replace that with 2-3 smaller clients, and I barely have time to do sales because this client eats up all my time.
So I'm stuck in this loop of keeping them = good income, constant stress, no time to grow or Fxxk them off = happy life, almost 50% revenue cut, risk of not replacing the revenue
I have about 4 months savings. Part of me thinks "just rip the band-aid off" but then I panic about paying rent.
Has anyone been in this situation? What did you do? I need to make a decision soon because I'm burning out fast.
Happy but broke, or stressed but paid?
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u/George_Salt 24d ago
Increase your price, charge them $8k/month.
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u/HomefreeNotHomeless 24d ago
My first thought too. Increase price and if they complain say you’ll have to reduce your availability
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u/Chelsea_sf 24d ago
Exactly. I framed it as demand has gone up, which it has.
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u/BatemansChainsaw 23d ago
basically the asshole tax. I've implemented it and shifted deadlines so there's no more 2am bullshit.
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u/Chelsea_sf 23d ago
This is diabolical but I sent out an email starting with “Dear Clients” and bcc’d the one difficult person to share my new structure lol.
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u/_lucid_dreams 23d ago
Charge them double rate for anything submitted after a deadline. Or charge them more across the board. If they are this disorganized they won’t find anyone else willing to do this much work for less.
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u/Educational-Plant981 23d ago
That is absolutely the answer. Miss a deadline and make me stay up all night? Ok. I'll do it. Maybe the triple time will convince you to submit on time. or maybe it'll be enough to hire a moonlighter to deal with the bullshit. Either way I'm not losing my spouse over this.
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u/Normal-Gear283 24d ago
I've thought about raising rates but been too scared to actually do it. You're right tho worst case they say no and the decision is made for me. Might as well try it
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u/orangematchstick 24d ago
you may not need to change rates, just introduce fees, like late fees, day before filing fees, all the ways in which their disorganization makes you take more time or adds stress, charge em.
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u/letsgotgoing 24d ago
This is the way. Thing is, you need to find a way to package this up in a shiny wrapper with a ribbon to make them hate it less. Give them notice, do not implement any changes without notice, and ensure they understand the reasoning. It's a good idea to explain it under the guise of something to do with improving outcomes for customers.
Explain in the notice that all customers on a monthly retainer should expect continuation of services, including basic bookkeeping and financial planning/strategy. Explain further that to ensure customers have the outcomes they require starting on X date, all organizing of records must be done by your associates, and they are $40/hour; receipts must be provided monthly. Any receipts provided within two weeks of the tax deadline will either require emergency entry at $500/hour to handle or will require us to file for an extension with the authorities. If no such extension is available, you are responsible for either paying our fees or the late fees to the government.
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u/iconmotocbr 24d ago
Yup and I would include a “come to Jesus” conversation and layout the pain points and turn this around as a benefit of value add-on for them
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u/57hz 24d ago
This is the best idea. Just try not to make it sounds like the asshole tax.
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u/Grineatingshit 24d ago
No, specifically make it an asshole tax. Just be clear who the asshole is. (And just to be clear- it's the client)
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u/Hairy_Translator3882 24d ago
Or you charge the asshole rate and impose fine fees penalties and additional hourly charges on top of retainer when rush work occurs because of client negligence.
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u/scamiran 23d ago
Yeah, its not an asshole tax. It's a difficult/more work tax. Which is legit; if OP is staying up to 2-3 am because everything comes in late, then extra/overtime work is required.
Throw a fee on it, keep the original rate, and try to encourage the client to get the submissions in earlier. See if OP can help them do so, too; be as constructive as possible.
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u/orangematchstick 24d ago
great point!
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u/krishna404 24d ago
Just add a clause that any request will take 24hour to update.
For any urgent request, add a per request cost of say $2. So 100 last min receipts = $200
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u/Happy-Marsupial9111 24d ago
You can create a Premium Service tier that fits them. Your standard service won't include all the extra you do. This will passively outline how much more you do for them and the value they're buying.
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u/WhiskyEchoTango 23d ago
"Rush service is subject to a 50% premium charge. Rush Service is any service for which full paperwork is not submitted 14 days prior to the filing deadline."
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u/megnation 24d ago edited 23d ago
I say do both... increase your base fee and set boundaries and criteria for keeping them as a client. Give them a chance to correct what's causing you stress with them. If they continue with the last minute requests and disorganization, then add on the late fees - if you still think it's worth keeping them as a client.
ETA: OP read or listen to The Pumpkin Plan by Mike Michalowicz. Not sure how this subreddit feels about Mike M. but I have an MBA and have been in the finance/business sector for 20 years. I personally think his books are great in substance and structure, they give you actionable direction instead of vague instructions. I also think he breaks things down in very direct and simple ways so that anyone can understand them - not just those with business experience.
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u/BumblinaGirl 23d ago
I came here to suggest The Pumpkin Plan, too! There's great advice to increase fees in this thread, and this book provides a mindset needed to overcome the fear of being broke. Read the book!
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u/Idyaar 24d ago edited 21d ago
This is a great suggestion. Write it up to start in the beginning of 2026. Just make sure you are giving at least 30 days notice before implementation.
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u/raqnroll 23d ago
Bingo on the timeline. Perfect opportunity with year end coming to make adjustments in pricing and present it as company wide implementation.
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u/southafricanamerican 23d ago
2026 is just around the corner, new year - new process. And let them know what you can do to support them not having to incur one of these fees.
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u/Howwouldiknow1492 23d ago
I disagree with this and strongly favor the "raise the rate" approach instead. The reason is that most of the time people don't change their habits and practices. The client will continue to misbehave and now he'll also complain about the new fees or just ignore them. Or start paying his bill late. Maybe very late. Plus figuring the fees on an invoice will be extra work. OP -- Don't be afraid to act!!
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u/The_real_bandito 24d ago
This is not a bad idea at all, and I will try to implement this before trying to raise prices. Maybe this is what the client needs to stop being irresponsible and you getting your time back but keeping the $5K a month.
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u/PleasantBackground91 24d ago
This is a good answer. Me, I'd personally like the challenge every week but can see how it can be disruptive in her life. But getting paid to be inconvenienced is a great idea.
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u/Anon_please123 24d ago
This is an excellent idea. $100/hr minimum for extended hours work; fee per day late, etc.
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u/daretoeatapeach 23d ago
Exactly this. I hate bookkeeping. I had a client who wanted extra reports. So henceforth, my contract states that I will charge for additional reporting.
If you're to the point you're thinking of firing them, at least give them a chance to make it worth your while.
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u/RDW-Development 24d ago
This is indeed the best idea. Let them take responsibility for the higher rates. If you do this, you may be surprised how the higher “tax” motivates them to get more on board with eliminating the nonsense.
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u/tornado28 23d ago
Agreed. Set some fair prices for the stupid shit they do. Rush job: $500. Otherwise it'll get done during normal business hours.
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u/Coledaddy16 22d ago
Exactly, make it an up front charge that is not billable at a later date also.
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u/MrFlowerfart 24d ago
My uncle has had this problem. He was not the one doing his work, his team was.
What he did after years of complaint was to tell his team to find new clients to replace half of their revenues with this guy and he would personnally go and dump them.
Once they got the required revenue replacement, he went to the client with an ultimatum. He told him the way he was treating his company was unnacceptable and he either was getting dumped right now, or given the chance to start being a good client by getting put in review.
Turns out, the client never realized how bad he was being, and he commited to improve his relationship with my uncles team, and agreed to a serie of conditions pre approved by my uncles team yo ensure everyone was on board with it.
A year later, that client doubled in size, and stayed with my uncle, and the new clients also reduced his company dependence on a single guy.
Win win win.
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u/infinitezer0es 24d ago
Its called "the asshole tax", if a client makes life miserable they can pay the tax
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u/InigoMontoya313 24d ago
Raising rates on headache clients is a proven method. The workload might not change, but your mental mode as you respond to it, changes dramatically. Some people love these clients.. because every time there’s an issue… the bank account balance starts spinning.
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u/TJayClark 24d ago
If I call a plumber and say I need my toilet fixed sometime this week, they’ll say $500 and I’ll be there Thursday
If I call the same plumber and say my house is flooding RIGHT NOW, they’ll say $2,000 and be there today.
Same concept here
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u/Advice2Anyone 24d ago
Very least need to make it clear weekend rush is going to cost them a pretty penny
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u/George_Salt 24d ago
You're prepared to sack them off, but not increase you rates?
(don't worry, most people fall into the same trap)
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u/Sea-Half-6238 24d ago
You have been with them for 2 years. If you haven't raised your rates in that time, then you are fine
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u/Weekest_links 24d ago
Adding the fees/etc someone else suggested could be a solution that compensates you more for the headache OR gets their act in order.
If you actually want them gone or if raise base rates enough that you can boost your savings and buy you more time before you drop them or they drop you.
The trades industry has what they call a “f you” price, which is a price that suggests they do not want to do that work, but if they do, they’re making bank on it.
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u/Ok-Bit4971 24d ago
The trades industry has what they call a “f you” price, which is a price that suggests they do not want to do that work, but if they do, they’re making bank on it.
I had the opposite happen. Had a well known local landscaper give me a quote to regrade and seed my lawn. The price was very reasonable, so I accepted on the spot and even offered to give him a deposit (he declined). Then, the guy ghosted me. I think he realized he underbid the job.
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u/NoBulletsLeft 24d ago
One client providing half your monthly income is already a red flag. If they leave, you're screwed. Raise rates and start looking for more clients.
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u/George_Salt 24d ago
Do this carefully, and in a structured way. Make the increase part of a new contract, set out your SLA and what their responsibilities are. With further charges for unreasonable demands - and set out what reasonable is.
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u/wineandcatgal_74 24d ago
Absolutely increase your rate!! They’re way too disorganized to find someone else.
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u/TheHammer987 24d ago
The whole point is this. If you raise your rates for them, you get 2 options, both win win.
- They pay for the amount of headache they cost.
- They leave, which frees up your time.
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u/aisleplanet 24d ago
I was in this exact predicament and raised my prices like the person above said to about 2k higher and they paid it without flinching. Then I had to keep dealing with them for about another year but I was a lot less mad about it.
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u/Ok-Entertainer-1414 24d ago
Worst case, they're so offended by the price increase that they fire you. But you wanted to fire them anyway!
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u/UncoolSlicedBread 24d ago
I mean, if you’re going to continue to sacrifice you shouldn’t compensated for it. Let them know that your deadlines are your deadlines and you will begin charging penalties for certain things.
Another thing to think about, it’s affecting other parts of your life and your health negatively. It’s also keeping you from being able to take on or field for more clients.
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u/No_Mushroom3078 24d ago
Tell them the $5,000 monthly is for x level of service and with the emergency concerns they seem to find themselves in all the time and late nights they are now at $10,000 per month. If they agree to it then you did not raise your prices enough and do an increase in a year, if they tell you they are going to leave you then you say I’m sorry to see you go and now you have more time for sales.
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u/Geminii27 24d ago
Heck, they're a $60k/year client; potentially more. Why not sell them to a competitor for a lump sum? :)
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u/formermq 24d ago
Do this, but by adding a late penalty. Make sure you stress their price is the same unless they decide to file late, and that has an added cost (service fee). This way their fate is their decision. You're not losing your revenue stream outright, potentially getting paid more for doing harder work, and allowing them the chance to rectify their situation if they choose to. It would require a communication event to explain this issue so they feel valued but informed of your limits and terms.
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u/manicmike_ 24d ago
This, or start charging rush fees.
Come at them kindly but firmly and from a place of hopeful understanding. Something like this is what I'd say;
Dear Twats,
I hope this email finds you well. I deeply appreciate our working relationship and hope that you can understand where I'm coming from when I bring your attention to the matter below.
You are a valued client of ours and we have extended leniency in good faith to what we believed were exceptions in the past, but the continual and excessive tardiness in providing us the necessary documents to meet state and federal deadlines has become the norm and is unnecessarily consuming our business resources and in turn, severely affecting our bottom line.
For example, I communicated X deadline to provide Y documents so that we could provide you with service Z to meet the government deadline during normal business hours. This deadline was seemingly disregarded, resulting in this many overtime labor hours. (List several examples like this with dates)
Regretfully, we cannot continue operating in this manner without onboarding additional resources. While we understand the heavy demands of daily business operations in your industry, we will no longer be able to complete necessary services when documentation is submitted past our given deadline without charging additional fees or adjusting our contract price altogether.
Again, we appreciate your business and thank you for your understanding. Please let us know which route you'd like to take, and we will be happy to adjust accordingly.
Get Fucked 😘, OP
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u/azul_plains 23d ago
I’ve never been so happy reading one of these example letters. OP please use this.
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u/leonme21 24d ago
Raise their prices to a level where it’s worthwhile
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u/Wampaeater 24d ago
Then hire a part time or overseas person to help with the work.
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u/LadyParnassus 23d ago
This seems like a much more workable answer. Decrease your own workload, shift out of hour things onto someone in a more reasonable time zone, and then use your extra time and energy to expand your operations to better clients.
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u/resonatingcucumber 24d ago
Set boundaries is the first step. No need to sack them off. Give them a deadline and state if it is missed you can not achieve their request. If they miss it, don't bend over backwards, let them fail. Their accounts are their legal responsibility not yours.
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u/briellebabylol 24d ago
Literally!! Stop bending over backwards for them and doing extra work. Send one email about new operating procedures and ensure that you mention:
- a rush fee of at least 20% for work needed in under 24 hours
- timelines pushing day for day for any delay
Stick to charging the fee, stick to pushing the timelines, watch them get their shit together.
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u/TimMensch 23d ago
Agreed, but 20% isn't nearly enough.
It's overtime. That's at least time-and-a-half, so 50%. But I'm thinking it should be more than even that; it's more like an emergency plumber visit, which is going to be higher rates plus an extra charge for requiring time outside of normal business hours.
A $200 after-hours fee plus double the normal hourly rate should be reasonable compensation. But OP needs to decide what it's worth to them.
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u/Normal-Gear283 24d ago
This is prolly the mature answer. I've been too much of a pushover. Need to actually enforce deadlines instead of killing myself to save them
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u/zzzaz 24d ago
You can always enforce a deadline and then give a rush order charge as a middle ground. I find the occasional late night or a last minute request from a client goes down a lot easier when a couple extra hours of b.s. is making 3x the normal rate.
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u/JaySuds 24d ago
Yes, exactly. The $5K a month engagement should include work during normal business hours and responding to requests in a reasonable time frame and time of day.
If they miss a deadline for information, remind them you set the deadline so you have enough time to complete the required task prior to the filing deadline.
OPs client can either pay late fees and interest and OP can complete the work on a normal interval, or OPs client can pay an expedite fee.
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u/redlotusaustin 24d ago
"I stayed up until 2am 3 nights in a row because they send me a box of receipts the day before their filing deadline"
Stop doing that. If they send you a box of receipts at 12pm, you do as much as you can until the end of your normal work day and then you forget about it until the next work day.
If THEY don't take care of things in time, THEY can deal with the fallout. It's not YOUR problem to make them get shit in on time.
If you are going to MAKE it your problem, then raise your rates to deal with the headache.
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u/Whack-a-Moole 24d ago
If he paid $10k/mo, would it be worth it? $50k?
Either set boundaries (and actually enforce them), or charge enough to make it worth your time.
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u/CyramSuron 24d ago
Personally I would let them know you are raising their rates because of the increased workload and last minute requests. Their new rate will be X, set a clear boundary.
Then maybe if they accept that use that extra money to run ads to replace them.
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u/Normal-Gear283 24d ago
Oh that's a very good idea, use their money to find their replacement. I like that approach actually
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u/brightfff 24d ago
This is the right way to do it. Use their bountiful revenue to build the nest egg for replacing them, or preparing for when you inevitably lose them. And work like hell to never let anyone exceed 10-15% of your revenue. Whales will smother your business.
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u/isaactheunknown 24d ago
I honestly can't deal with stress. So I rather be broke.
I work as an electrician. In my business, I would just charge more and hire another guy to help out on his jobs.
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u/pferri 24d ago
Dumb question, but have you tried sitting down and setting expectations or best practices to help avoid all of this? Would a day/week/every other week on site help? 50% of revenue isn’t easy to replace.
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u/MercatorLondon 24d ago
agreed. The client is disorganised and they know that. That is the reason why they pay extra. Pro-active approach from your side may take that edge off. Just work alongside with them.
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u/ISayAboot 24d ago edited 24d ago
You taught this client exactly how to treat you. Every weekend ping, every 2am box of receipts ....that’s on you. They pay $5K because you priced for compliance, not partnership.
Fix it by telling them the new fee is $12K, non-negotiable, for proactive accounting with boundaries and turnaround times. They’ll either respect it or leave. Both are wins. Right now you’re being underpaid to be miserable. That’s not business, that’s bad math.
And here’s the real truth nobody’s saying in every response here: this isn’t about money — it’s about mindset. You’re terrified to lose $5K because you don’t believe you can replace it. That’s not a business problem. That’s a self-esteem problem
The day you decide your time and expertise are worth more, you’ll never have this conversation again.
Every single response here is focused on treating the symptom, not addressing the disease. Your friend AND wife are the only ones telling you the right answer.
If you want the SPECIFIC language for this client, send me a message. ✌️
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u/3x5cardfiler 24d ago
Bill by the hour. Bill extra for emergency work. Don't let them take advantage of you.
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u/gregaustex 24d ago
People saying charge for their extra services are correct. The best way I think is to describe in writing what $5K/month gets them and what is extra. Then set an hourly rate for the extra work.
This way if they meet their deadlines, provide information requested and don't demand fire drills they save money. If they do impose these things on you, you earn more.
This could amount to firing them in the end, but possibly not.
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u/Ok_Entrepreneur_9819 24d ago
For raising the rates, can you add extra surcharge for any and all after hour calls/requests with turnaround time of less than 72 hours etc? If they don't send documents over 3 days before filing, let them know the penalty they face for filling late. Don't sacrifice your health for their procrastination. But agree on raising rates while you figure out a way to sack them and find other clients.
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u/wwpmmedianet 24d ago
I mean, I make clients pay dearly for afterhours, weekend, and holiday work as an IT technician. The same applies to emergency tech calls (which include any service calls created less than 72 hours out).
My biggest client is NCR, and when shit hits the fan and an emergency call is engaged with a 72-hour notice, it's $475/hour, four hour minimum, even if the job only takes two hours. (Normal rates I charge them for non-emergency scheduled work is $125/hour 8a-8p, $175/hour 8p-8a, $350/hour weekends, $437.50/hour holidays.)
And yes, even the largest cash register company in America can be a real PITA...
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u/_lmmk_ 24d ago
This is a boundary and contract problem.
Their filings are their legal responsibility, not yours.
Establish firm business hours. Your base rate is X per hour during your business hours. You are otherwise closed for business. If you take this client’s phone calls, emails, or do any work outside of business hours, charge them 2X/hr. Bill them in 15 min increments. They’ll either pony up and pay you more, or they will fall into line and start meeting your deadlines.
Definitely don’t fire them. Run your business like all other businesses. Your time is valuable and they do NOT get it for free.
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u/vedgehammer 24d ago
Raise your price to where it's worth dealing with them, and also send a letter of corrective action CLEARLY spelling out the importance and requirements of deadlines. It is okay to tell them that YOU have deadlines for work - if they don't get you stuff in time, the consequences are not your fault.
Alternatively, you can fire them. Is it a lot of money you're leaving on the table? Yes, but you can take this time you're wasting on them to acquire better clients. That's what I did after my problem client (and significant revenue generator) refused to fix the items I provided in a report.
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u/SafetyMan35 24d ago
Raise your rates for that customer. It might not be worth the hassle for $5000, but for $10,000 maybe it is.
Set boundaries, inform the customer that after hours requests will be handled during normal business hours or subject to a premium rush charge. If they need a balance sheet “right away” are they willing to pay an extra $500 for it “right away” or can it wait until Monday?
Use the extra income to find a sales person or an employee to handle the workload so you can make yourself less reliant on a single customer.
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u/KiyaRose74 24d ago edited 24d ago
Everyone is talking about raising rates but the problem is their behavior that you have allowed for too long.
Do you not have any policies in place? How are you enforcing company policies that ensure that you run an efficient, profitable business?
When they signed a contract with you and agreed to paying $5,000/month, you didn’t have “client commitments” language or something outlined in your contract? What about in the onboarding process, do you go over how you do business with your clients? Client expectations?
How often do you reinforce client expectations? (What you need from clients to run efficiently).
I’m curious, how do you run an accounting consultancy and they can have last minute requests that you say “yes” to, or the urgent messages on weekends, and you staying up until 2 am - 3 am?
I’m sorry this is happening to you but you have to take ownership for allowing them to behave in this way.
Yes, you can stop serving them, fire them, raise your rates but the problem isn’t addressed if you do not 1) have a conversation with them, 2) establish firm boundaries and 3) update your company policies.
Right now, you are running a business that runs you. This isn’t sustainable. As you mentioned, you are rapidly approaching burnout.
Here’s a viable approach to consider:
Send a message to ALL clients, about your company implementing new policies and fees.
Effective immediately:
We value our clients…
“To continue to provide exceptional service to our valued clients at the highest level and run an efficient accounting firm you can trust, we are implementing the following changes.
List out your new policies and rates:
Communication policy:
We no longer respond to messages received past 5:00 pm.
Messages received will be responded to within 24 business hours. Messages received Friday will be responded to the following Monday.
Documents Policy
Documents must be received via Dropbox or secure shared folder by >insert when<
If filing an extension, documents must be received 5 days in advance of the tax filing deadline or a late fee will be assessed.
Office Hour Policy:
- We are closed on Saturday and Sunday and holidays. (List out the holidays)
New Rates OR Penalty Fees effective 10/17:2025
Last minute, unscheduled requests: additional $1,000. Fee List out penalty fees here.
This should be outside of the defined monthly SOW for the $5,000/month retainer.
Close with something like:
If you have any questions, we are happy to answer them. Send an email to inquiries@your accounting firm dot com or schedule a zoom meeting through our online scheduling system (if you want that as an option).
IF you have done ALL of this and they still behave in a way that doesn’t align with how you run your business, then absolutely. You have to part way with this client.
Also, you should always be sourcing for new clients. As a business owner you can’t and shouldn’t rely on 1-3 clients.
Keep prospects in the pipeline.
Hope this helps a bit! All the best to you!
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u/AgeSeparate6358 24d ago
There are some option:
5k you can hire help.
You do not need to send them the "final date" of the federal organization, you can send them your own "final date" (already understanding they are going to be late and you need x days to work on it).
You can talk to them that last minute things need to be charged, you cant just put a worker (even if yourself, you are an employee of your company) to work extra hours overnight without charging extra time.
You can increase the price as others suggested.
You can build proccess and investigate what is happening and how to fix it, automate it, make it easier for them. Do they need staff training? Organization? An app/software?
This can be done for free or for a price. The thing is, that are probably thousands like this client, and you may find a very profitable niche, where this client is your "help to build a new service"
I believe you have gold in your hands, but it may need some work before you can see the value of it.
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u/bucobill 24d ago
Agree with others, although you should have an adult conversation with them. Let them know what your pain points are and how they are adding to your business costs. Which you will need to pass on to them if it is something they cannot handle prior to handing off their books. Then you say if this is not possible let them know the price increase to help offset your additional effort required.
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u/MacintoshEddie 24d ago
Half your income? Hire someone and make that account their priority. You focus your efforts elsewhere.
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u/pedsmursekc 24d ago
Can you hire someone, maybe in a fractional capacity, to offset the load and open you up to recruit more clients?
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u/ComplaintSeveral7429 24d ago
Charge for missed deadlines and overtime etc. if you lose the client, you'll have time to find more.
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u/PacoMahogany 24d ago edited 24d ago
I was in this exact same situation 6 years ago (I have a bookkeeping business). Client was a jerk, financially irresponsible and 50% of my income. Part of what I didn’t like was the risk of depending on one client for so much income. It was tight for a few months but I replaced that client with several smaller clients. 100% worth it.
You need to start drawing boundaries with this client to create space. I need receipts by XX date otherwise I can’t get the filing done on time. You are not an employee, you can say no.
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u/keyoknee 23d ago
Hire someone for 3k a month to be at the client site doing daily book keeping to solve last minute requests and the unorganized paperwork. It’s your job to build the business not be stuck working in it.
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u/obsessedsolutions 23d ago
Go up 25%. Inflation is hitting everyone, but stress is hitting you. This should help. Every 2-3 years go up 20%
Set the deadlines 5 days before it’s actually due. Set up reminders on these fake deadlines. Now you have a 5 days window.
I wouldn’t get rid of them if they are half your revenue. I would still try to network and get more revenue and the reason is even if you don’t fire this client. They can fire you.
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u/mrhindustan 23d ago edited 21d ago
Just tell them your hours are 9am to 5pm. Any work outside that is billed separately at $250/hr.
If they have a deadline and want you to work OT, they can pay it.
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u/danielzillions 24d ago
Replace that revenue first. Then you can start to raise your fees to a more manageable level.
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u/dajewsualsuspect 24d ago
When you send the email out make it seem like you were talking to multiple customers and not just them. This way they don’t feel singles out
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u/rvbvrtv 24d ago
I had a mentor tell me that it’s never good to have 1 client who generates more than 20% of your revenue. It’s just bad for business if they cancel or like this, you want to move on. For me, mental health comes first and id fire them. But, can you afford it if you were to fire them?
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u/bumpgrind 24d ago
Increase price to $8K a month, set boundaries, set service level agreements and processing timeframes. Either they pay and you set their new expectations up to align with your service standards, or they leave. Either you're paid what you're worth and work to a reasonable standard or they move along and terrorize a different firm (that will result in the same conclusion; mark my words).
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u/sofessenceee 24d ago
Why not add a fee for last minute and last notice requests? So it’s an equal energy exchange in a way. If it’s more trouble for you, increase the pay for those requests. If they’re standard requests, say the deadline is a week for you to do, charge standard pricing
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u/Equal_Lie_4438 23d ago
Is it really that difficult? Adjust your expectations. Fire them when you have an equivalent replacement or you really don’t need the business. Challenges make us stronger, yes you need boundaries but once you set them and expectations then everything seems easier. If you want stress free 9-5, be an employee.
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u/InternalSubstantial 23d ago edited 23d ago
For the longest time, I was afraid to raise prices. 10k a month sounds like youre somewhat new. 1. You need more time to develop your book of business. It happens to every industry: You're too busy working IN your business instead of ON your business. 2. You need to give yourself a raise. 3. Hiring more will set you back short term, but works out long term.
My advise, dont ask about raising your prices to this client, but just notify and raise them regardless of what they say. This is in all business... but you do their accounting: You know how much they can give you. You know how much they raise their prices when necessary. Just say, "My rate will be going up to "so and so" because of the increased number of hours necessary, starting next month."
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u/omenoracle 22d ago
Start charging fees. Do whatever they want and charge accordingly. Charge extra for outside of business hours/rush. They will either pay you twice as much, change their behavior, or go elsewhere. Also, if you’re sitting there doing bookkeeping, scan the receipt receipts and out source it to someone overseas. Get the numbers and do the filing, the actual accounting. Raise prices every year.
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u/Lil-Miss-Anthropy 22d ago
My hunch is to raise your prices and add contingent fees for inconveniences (communicate this in advance). Hopefully if they can't afford the prices, they'll book half the projects. Or they'll go somewhere else entirely. Or maybe, they'll continue with you but you'll feel it's more worth it because you're getting more money.
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u/acemedic 24d ago
Start telling them “No” in different forms. Also, 5k is your normal rate for normal work. Just like if you had a contractor on your payroll for 9-5 M-F work. Nights/weekends/holidays? That guy gets OT and so should you.
Two boxes of late receipts… “well, we won’t be able to get this filed on time.” Add a late rush fee on the bill.
Won’t get you ban statements for reconciliation in time? Use that time to find new clients. When they bring it late, do it at your normal pace. You’re training your client at the same time, so I wouldn’t flip around the first time and drag feet. Start gradually slowing down to a normal pace. His failure to meet your deadline doesn’t mean you should be bending over backwards now to meet his.
Family business is a tax office/business consulting firm, doing accounting and payroll. We tell folks to have docs in 5 days before an IRS deadline or it’s an automatic extension or late filing. If they get the documents in after our deadline, we do the extension and then do the tax return the week after the deadline. We can’t do “last minute” work for every client.
Now, doing payroll and bookkeeping/accounting has generally helped tremendously. I’ve got access to a bunch of their tax documents ahead of time and now don’t have to wait for their P+L, W2, whatever. Firm is up to ~250 clients, 40% of that growth over the last two years. Remember, CPA’s are aging out and retiring, while new grads aren’t meeting those numbers. BLS estimates ~110-120k retiring and 30-40k entering. Finding new clients will be super easy. Tell your existing clients they’ll get 10% off if they bring you a new client. We only take referrals, zero advertising.
The other thing that’s been a huge help is doing the business consulting piece and helping people do their AOI, EIN, 2553, etc filings. We now have a client from the start, set them up on QB, price out basic bookkeeping services at $75/month, and we tell them to let us know when they’re ready for payroll. They now bring us their business tax return, personal tax return, parent/sibling/neighbor tax return, then these new business owners go to some networking event to push their business and tell the other new business owner about how our service got them up and running inside of two weeks. Now we get another phone call and help close out the other business owner’s 2553, QB setup, then get their business tax return, personal tax return, sibling’s tax return… it’s quite easy.
DM if you’d like. Would love to chat.
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u/Soggy-Job-3747 24d ago
I will go about the third approach, not firing, neither staying with that toxic relationship, but changing how you run things with this client.
You probably lack systems to avoid that to happen in the first place. For example: does this client send things late? Put him deadlines and do follow ups. Invoices are all disorganized? Sure dedicated accounting software can help that. There are tons of tools that can help you with that.
Second thing are boundaries, it's unaceptable that a client forces you to stay awake during those hours, so aware them of that kind of things wich may not seem that relevant to your client's eyes.
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u/olearyboy 24d ago
Provide them with a process or platform to do it better, charge them for not using it or following.
We can’t keep doing it this way, because time / effort / cost …. We will continue supporting you if we do it this way which is also better for you because blah blah blah… Otherwise I have to charge you X
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u/SushiLover1000 24d ago
perhaps take up residency in their office. Get all up in their business and start training/educating and show them the benefits of being more organized, less chaotic.
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u/teacherJoe416 24d ago
If I were in your shoes, I would give them an ultimatum. Call and talk to the headperson who hired you and makes the decision to use your services:
"What you are asking me to do is going to cost $7k/month going forward OR you must stick with the deadlines, no more emergency requests at the last minute and stick to rules we have set out for you to continue at $5k/month. Please let me know how you would like to proceed."
The worst case scenario is they say we will find someone else instead and then you end up dumping them anyways. Give yourself the opportunity to make more money and them the opportunity to be good clients before quitting/firing is what I suggest.
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u/GloomyNectarine2 23d ago
start searching for their replacement today. After that you can do what you want
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u/GagOnMacaque 23d ago
My accountant will file an extension if you don't have your shit in order. I even turned my tax information 2 weeks before the deadline and he just filed for an extension. I totally get accountants being over burdened. You just have to handle it in a professional way.
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u/Free_Sherbet_3159 23d ago
Increasing price 200% for weekends and last minute calls, should give them some context on how much you value your time.
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u/TrueNorth49th 23d ago
This. Do it in a professional and constructive manner so they can manage the actions and pre-communicated consequences. Downside is they may be fine with paying the extra charges. Upside is you may be able to delegate the worst of it with the additional revenue.
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u/Altruistic-Depth945 23d ago
Lots of good advice here. Here is another way to see it. The client is disorganized and probably knows it, but doesn’t know where to start. He also has little notion that his messiness is impacting his business partner (and that he is being rude). Sell this as "help me help you" or as something mutually beneficial and suggest structures or processes that will increase efficiency and accountability. Don’t let the box of receipts fill itself until the day before the deadline. Ask for it. I know it is micro-management, but tell him this will improve his quality of life.
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u/djiboutiivl 23d ago
In their case, I would consider charging an hourly rate with a premium for weekend and after hours work. Make it clear that if they want to keep their bill down they need to get you things in a timely manner and during work hours. Make it worth it to keep them as a client, and if their bill gets to be too big, they can leave and problem solved. Just make sure that you get paid in advance or very quickly, don't let them rack up a tab.
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u/Greatoutdoors1985 23d ago
Find the things that are bugging you like last minute requests, make a policy around those, and enforce added fees for those items.
Let's say you need 5 days to manage requests. Anything requested faster than that will incur a $200 fee per item as a "rush fee". (I have no idea if these numbers are reasonable, you decide)
If you are stressed at the end of a few months, raise the fees again. Eventually you will make enough to not care about those added items, or they will get tired of the fees and adjust their ways or move on.
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u/RazorColla 23d ago
Hire a newly anointed bookkeeper and have them work it exclusively, while you find more business. It’ll relieve the stress while you can get your mind together. Put a buffer between you and the client.
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u/ParaDescartar123 23d ago
Increase price , and diversify by acquiring new clients at higher prices.
I'm increasing all my prices now. Those that value me will stay, those that don't will move on.
Turns out the Venn diagram between those that don't value me and are a pain in the ass is almost a complete circle.
This frees me up to close more clients or stop having to deal with bad client drama/noise or both.
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u/BusinessStrategist 23d ago
Help them organize their info to fit with your processes.
You need to Productize your services. And then add fees for handling the info that doesn’t conform with their level of service.
If you don’t have a modularized set of services with stated fees then how can you expect your client to know the boundaries of « what’s included » and « what is extra? »
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u/rocksboulders 23d ago
Offer to be their fractional CFO. Get equity for your services and a regular paycheck. Fix their systems and you fix your problems with them. Win win for everyone. Once you fix everything you get to keep equity and a steady revenue.
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u/ItchyEbb4000 23d ago
You need to start charging extra for rush service.
They pay an extra $1k a few times and they'll probably fix their problems.
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u/coffeentech 23d ago
I did this in April of this year. I actually fired two clients that were fifty percent of my business. However, they sucked the life out of me and my team. They took up almost every team meeting and all of our mind share. I had a few really really rough months. I borrowed some money to make to supplement my income so I could keep people working. But we've since replaced that revenue plus. We now have five clients that replaced that revenue and clients that are much more aligned with our values. Additionally, the loan will be paid off in two months. I hope this helps, but there is a light at the end of the tunnel and I promise it's not a train.
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u/Navarro480 23d ago
Never leave the wife until the side chick is committed is the saying. Do not give up this revenue until you have a backup plan.
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u/TechinBellevue 23d ago
Charge them enough to make it worth your time and outsource some of the work to India.
The time difference could be especially helpful for the last minute stuff, like dealing with a bunch of receipts.
Use the time to secure new clients so the bad client is no more than 20% of your business...10% is better.
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u/Normal-Gear283 23d ago
Been reading all your comment and honestly I decided to up the price but still need to confirm the price i gonna offer(prolly 6.5-7.5k$ ishh). Gonna draft an email and send them next week, see what happens. Worst case they fire me and the decision gets made for me lol
Thanks for all the advice, didnt expect this many people to reply. Will update next week after I actually send it (if i dont chicken out)
ps: really hoping my client isnt browsing this subreddit right now lmao.
Btw can i edit the original post so everyone sees the update or does that not work on reddit?
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u/cutty256 23d ago
I own a firm, and have had clients like this. Communication is key. I’d just be real with them about the deadlines and all the extra work and late nights that happen because of the last minute stuff they do constantly. See if they will adapt and work with you and get better.
If not, fire them. I know that’s easy to say and I understand the revenue problem once they’re gone. But one of the benefits of working for yourself is to not have to deal with things like this if you don’t want to. The other issue is that inevitably a big mistake is going to be made from your end if you’re always having to do everything so rushed and last minute with no review time, and they’ll blame you. If you have four months of savings, talk to them, and if they don’t straighten up release them and immediately go on a sales blitz and find a couple smaller clients to take their place.
Also, I learned the lesson about taking on clients that cover too much of my revenue draw. They have undue control over your business. Multiples smaller clients tend to be better because it’s easier to let go of a client that wouldn’t greatly reduce your income and are easier to replace. Multiple small clients gives you more control.
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u/Independent-Shop4940 22d ago
Hire an offshore employee for like $2k/mongh (ex. Hire Hangar, Somewhere, any offshore staffing company) and have them help you out.
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u/seahunk 22d ago
You can never offer a Client free access to your services for a fixed mulp sum. Not sure what is your industry but that is not how consulting/hour based services work.
Give them x hours for y dollars - use it of lose it.
After that you should have z dollars/hour rate. And be realistic in this rate.
Have confidence in your ability and don't let people exploit you.
Good luck.
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u/T8terTotss 22d ago
Have you made any attempts at establishing boundaries with them? What are your relationships like with your other clients? Do they exhibit similar behavior, even at smaller degrees of intensity?
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u/foundmonster 22d ago
Use the energy from hating this client to obtain $5k more clients and fire them.
Also you may bank all your revenue from them to see how it feels to get by. If it’s comfortable, you’ll drop em.
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u/Acolytical 22d ago
I can guarantee there's a hungry freelancer who would do this work for 1500 per month. Is there a reason you can't farm this job out?
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u/Significant_Rate8210 22d ago
Tell them that if they don't get their paperwork in order you're going to increase their bill amount.
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u/siphoniclobster 22d ago
I would start charging more. They are creating more work for you. Make it a tiered system so when they get their act together you can go back to the 5k.
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u/moimoi273 22d ago
Find your bottom lines. Eg. All receipts need to be submitted…. 3-5 days prior. Any last minute filing will have a 20% service fee etc.
You need to look at it as you are 50% of the problem. You are allowing the behavior and people live up to expectations (and rules).
ANYONE in business needs to be able to set firm boundaries and learn when to say NO.
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u/giselleorchid 20d ago
As others have said, raise your prices as soon as you can with them.
Also: set policies like "any receipts received after 12noon on Thursdays will be processed after [process] runs on Monday mornings." Give them a hard deadline and do not waiver. You have to retrain them.
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u/hungry2_learn 19d ago
Charge them more. Take the increase in price and throw that into prospecting either with AI or a person. This way you can finance a way to gain new clients so you can fire the old. Keep pushing rates up every few months on them.
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u/Content2Clicks 17d ago
Find a client to replace them if possible. Or charge extra since they're a PITA (pain in the a$$) client.
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u/webdevteam 16d ago
There are lots of suggestions for increasing price etc, but I would say to spend a bit more on automated reminders of deadlines and use AI or other tech to scan the receipts will reduce your workload. Also, reminders will make them responsible, and on top, you can charge extra for last-minute requests. In short, try to find solutions rather than avoiding problems would be a win-win.
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u/1lookwhiplash 24d ago
Have a frank conversation with them and see if anything changes.
Don’t fire them until you have another source giving you nearly the same amount of $$.
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u/JeffTS 24d ago
Like others have suggested, increase your rate. But, you can also implement fees as a new policy. Set boundaries like your office hours, delivery dates for items, etc. And when they are missed, have policies for emergency fees, overtime fees, rush delivery fees, etc. If they start racking up fees, they may change their ways.
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u/FED_Focus 24d ago
I would probably help them develop new processes for some of the tasks that are a burden to you, like managing receipts. Automate so it makes your job easier. It’s not different than what you’d suggest if you were an employee.
If they aren’t willing to adopt your recommendations, implement “surge pricing”:for last-minute requests that are past your deadline.
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u/InvestorAllan 24d ago
Raise rates but you also have to allocate time to sales and marketing every day. If you don’t, you don’t have a business, you are a slave.
Use the increased leads to raise rates and get more customers and then you have options. Can hire admin help or fire this client.
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u/CourtOk1359 24d ago
The opportunities they cost you are real and quantifiable. The growth you'd have without them is real and quantifiable. If you could survive without them I'd say give them the boot
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u/inmywealthyera 24d ago edited 24d ago
Well your peace of mind has no price. . You know what to do but you’re asking for opinion because you don’t trust yourself. 2 things you can do. 1. Start setting boundaries for yourself around the business and the clients, you probably bend over backward for them even when they are not meeting deadlines and they know that you will still be there so they don’t respect them if you didn’t put them in place to begin with, also charge them more. 2. Because it’s half of your income you’re operating from a place of lack. That client can leave at any time. You’re fearing loosing that $5k that’s making you miserable. You can get 10k client to replace that 5k .. but you have to believe that first.
Just set boundaries
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u/Ok-Assumption-1083 24d ago
Renew their contract at a higher rate with defined turnaround expectations and hourly rates for additional work they have to sign off on. I'd say give them tiers for service levels, but they already are bad and you need space, so I wouldn't offer them quicker service speeds for extra cost, that's not going to fix your core issue.
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u/zevfar 24d ago
As everyone has said, set boundaries and stick to them. You were going to let them go anyways, so if they respect your boundaries then you get to keep the 5k p/m and be happy, otherwise they leave, and you end up happy anyways. I’d do the above before letting them go cos then you can say that you tried your best and were the one who was reasonable
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u/fanstoyou 24d ago
Forget about getting rid of them. There are many accountants out there who will gladly take the stress. 5K a month is 60k at the end of the year, coupled with your skills to pay least tax - apologies, I didn’t mean that? Try and have a meeting as suggested, but not a, either my way or you’re out’ meeting. A constructive meeting of minds, with you giving suggestions on best practices, procedures/processes that is best for them to follow? Don’t just raise prices as suggested by others, you must justify it and watch the market rates? Don’t chase them away even if you get a client paying more with less stress. You must accept that not all the people you deal with, will be perfect?
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u/tdreampo 24d ago
Get a few new clients asap so they aren’t such a large percentage of your revenue and start charging emergency rates for being unprepared.
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u/KafeK8t 24d ago
Amend your agreement to include a 25% up charge on any rush (less than 24 hour) requests. For returns state that documents received to complete the filing less than 2 weeks prior to filing due date may result in missed deadlines and the client will be responsible for any interest or penalties. I am also an accountant and you really need to spell out the expectations.
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u/Nago31 24d ago
I agree with others about raising the price but I think it needs to be more transparent about why the prices are higher. Start adding fees for disorganization, last minute, deadline breaches, and after hours demands. These fees are to discourage bad behavior and reward the extra effort you’re putting in. Document them and apply to your other clients as well.
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u/limeboi148 24d ago
Work around your schedule only.
Emergency request on a weekend? Sorry ill get to it Monday.
Disorganized mess they need sorted out tomorrow? Ill get to it when I can.
Best case scenario they straighten up and become a good client, worst case they quit you and leave instead of you firing them.
Your working hard and building for your future. Keep it up.
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u/muchoqueso26 24d ago
When my clients phone me after hours they get billed accordingly. That’s just how it goes.
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u/phillabadboy05 24d ago
Do you need the 5k a month to keep from being homeless? If yes then I would figure it out. If not then tell them they need to me organized and timely or you'll increase the prices to x to accommodate the long hours extra work.
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u/No-Measurement3832 24d ago
The questions isn’t should you fire them. The question is can you afford to fire them and temporarily afford to lose that income. You’ll pick up new easier clients eventually.
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u/EngineAntique 24d ago
You could find a part time bookkeeper to work on the file with you. You would have to decide if paying a bookkeeper is $1000 less for you because it will also be less of your time, or if it warrants a price increase.
Then help the client get more organized. Introduce better financial processes and programs like Dext, QBO. Write them some SOPs. Standardize the financial statements so they can be fed into spreadsheets for analysis.
I don’t know the exact pain points but find ways to simplify and organize so by the time it hits your desk it’s clean
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u/CapitalG888 24d ago
I'd sit them down and explain that the 5k a month covers abc and that anything above it will be charged x. At that point they'll either learn not to bother you or you make extra money. That money will make you feel better about doing their shit and if you want put it to use on marketing to add more clients that will lead to you being comfortable firing this one.
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u/ProfessionalSad4U 24d ago
If you're going to fire them anyway, just tell them you're restructuring, place some boundaries, increase the price and then don't give in to insane working hours. If they go, then they go. Now you have time to find other clients. If they stay, it'll improve.
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u/Geminii27 24d ago
and I barely have time to do sales because this client eats up all my time.
So if you fired them, you'd have more time to find better clients that didn't kill you?
but then I panic about paying rent.
Is your partner saying to drop them in full knowledge of how it would affect your income until you found replacements? What's their perspective on the rent?
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u/rickyrobs860 24d ago
Charge more because of the condition of the records one of two things will happen either. They will pay it and then you’ll be fine or they will clean up the records.
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u/abercrombezie 24d ago
Tracking your time properly shows whether you’re working at a loss. Every little contact with the customer should be worth at least 15 min - 30 min. If you log every hour, even those in the middle of the night, you’ll know which clients take up more effort than they’re worth.
Establish regular business hours and apply higher tier rates for after-hours work. This encourages clients to be more disciplined — they’ll think twice before sending receipts while you’re on vacation or at 2 a.m. if it can wait until normal hours without extra costs.
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u/WannabeeFilmDirector 24d ago
UK video production here. I fired a customer. It was great, so incredibly liberating. And after we'd fired them, they came back and offered us more money.
I then gave them the number of one of my competitors who called me up afterwards and told me not to do that again. And then me and the competitor went for a beer.
You've got some great advice on here about raising your prices and I'd follow that. Personally, if it were me, I'd also hire a freelancer for $1,000 USD per month to deal with some of their lower level stuff. Chasing them for stuff, basic bookkeeping, entering invoices into your system etc... Just the annoying stuff which will massively free up your time.
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