How to disengage clients
By August J. Aquila, Ph.D.
July 22, 2024
Disengaging clients in a professional services firm is a sensitive process that requires careful consideration to maintain positive relationships and uphold your firm's reputation.
Here's a step-by-step guide on how to do it professionally.
1.
Review contracts and agreements. Begin by reviewing the terms of your engagement contracts or agreements with the client. Understand any clauses related to termination or disengagement and follow those guidelines.
2.
Assess the situation. Evaluate why you're considering disengagement. Is it due to a mismatch of expectations, changing business priorities, or something else, such as a difficult client, etc.? Understanding the reason will help you communicate your decision effectively.
3.
Prepare your communication. Craft a clear and concise communication to inform the client about your decision. Be honest but diplomatic in your approach. Express your gratitude for the opportunity to work with them and acknowledge the value of the relationship.
4.
Choose the right timing. Select an appropriate time to communicate your decision. Avoid busy or critical times for the client, such as during important projects or deadlines. Give your client sufficient time to find another service provider. You might also consider suggesting someone the client can speak with.
5.
Hold a meeting or call. Just don’t send a letter. If possible, arrange a face-to-face meeting or a call to discuss the situation. This personal touch can help to convey your sincerity and commitment to maintaining a positive relationship.
6.
Be transparent. Clearly explain the reasons for disengagement without blaming or accusing the client. Focus on business reasons and mutual benefit rather than personal issues.
7.
Offer recommendations. If you can, suggest alternative solutions or resources that might help the client address their needs. This shows that you're genuinely concerned about their success even if you're no longer directly involved.
8.
Develop a transition plan. Work with the client to create a transition plan. This includes how you'll hand off any ongoing work, relevant files, and knowledge to ensure a smooth transition for both parties.
9.
Respect confidentiality. Ensure that you maintain confidentiality and don't disclose any sensitive information or proprietary details about the client's business.
10.
Finalize financial matters. Resolve any outstanding financial matters, such as billing or payment. Make sure both parties are clear on how outstanding invoices will be handled.
11.
Follow up. After the disengagement, send a follow-up email or letter to express your well wishes for their future endeavors. This gesture can help leave a positive impression.
12.
Document everything. Keep records of all communication related to the disengagement process, including emails, meeting notes, and any agreements made.
13
. Stay professional. Throughout the process, maintain professionalism and a positive attitude. Your reputation is important, and word-of-mouth can have a significant impact on your firm's success.
14.
Internal communication. Communicate the disengagement to your internal team, ensuring they're aware of the situation and the reasons behind it.
Remember, the goal is to part ways on good terms and leave the door open for potential future collaborations. Disengaging from clients should always be done with respect and professionalism to preserve your firm's reputation and relationships within the industry.
Sample client disengagement letter
Here's a template for a client disengagement letter for a CPA firm. Make sure to customize the letter
with specific details relevant to your situation.
Dear [Client's Name],
Re: Disengagement from [Your CPA Firm's Name]
I hope this letter finds you well. We appreciate the trust you have placed in [Your CPA Firm's Name] for your accounting, tax, and financial needs. It has been our privilege to work with you over the years.
After careful consideration and review of our client portfolio, we regret to inform you that we will be discontinuing our professional services for your account. Please be assured that this decision was made after thoughtful evaluation and is based on a range of factors, including changes within our practice, shifts in our strategic focus, and resource allocation considerations.
Effective [Last Service Date], we will no longer be providing services to your account. We will ensure a smooth transition of your financial records to facilitate the continuation of your accounting needs. Our goal is to make this transition as seamless as possible for you.
Please take note of the following important points:
1. Records and documentation: We will provide you with all necessary financial records, reports, and documentation relevant to the services we have rendered for your account. These will be transferred to you in an organized manner to assist with your future financial needs.
2. Outstanding work: Any outstanding work will be completed up to [Last Service Date] unless otherwise specified and agreed upon. If there are any pending items that require attention, please inform us at your earliest convenience so that we can address them appropriately.
3. Engagement transfer: If you decide to engage a new CPA firm, we are willing to work with them to facilitate a smooth transition. Please let us know if you would like us to coordinate with your new service provider.
4. Gratitude: We genuinely appreciate the opportunity to have served you over the years. Your trust and confidence have been invaluable to us, and we sincerely thank you for your partnership.
If you have any questions or require further assistance during this transition, please do not hesitate to contact us at [Your Contact Information].
Thank you once again for choosing [Your CPA Firm's Name]. We wish you every success in your future endeavors.
Sincerely,
[Your Name]
[Your Title]
[Your CPA Firm's Name]
[Your Contact Information] |
August Aquila is CEO of AQUILA Global Advisors, LLC, located in Minnetonka, Minnesota. He is a well-known professional service firm consultant, speaker and author. He may be reached at 952-930-1295 or at aaquila@aquilaadvisors.com. Visit www.AquilaAdvisors.com for more information.
