Terminating a client relationship can be a difficult and emotional process for both parties, but it doesn’t have to be that way. With the right approach and preparation, the process can be relatively smooth.

There are many situations when it is necessary for a Certified Public Accountant (CPA) to consider disengaging with a client. 

The most common reasons include ethical dilemmas, when a client’s actions are in breach of professional standards, or when the client is unable to pay for the services rendered. Additionally, if a client is uncooperative, does not provide information in a timely manner, or does not adhere to the CPA’s policy and procedures, the CPA may consider disengaging from the client. 

Other reasons a CPA may consider disengaging from a client include a conflict of interest, a lack of trust, or a breach of contract. In all of these cases, it is important for the CPA to communicate clearly and promptly with their client to ensure that the disengagement is carried out properly and that the client is not left feeling misled or deceived. Ultimately, the decision to disengage from a client is a difficult one and should only be taken after careful consideration.

So, if you find yourself needing to disengage from one of your clients, there are a few steps you can take to do so in the most healthy and professional way possible.

Start with verbal communication

When you need to terminate a client relationship, it’s always best to be as personal as possible. Don’t surprise them with a letter that informs them of your decision, as this can come across as unbefitting and even unprofessional. Instead, take the time to get personal and talk to the client. 

Explain why the decision is being made and have an open, honest dialogue. Be willing to listen to their side, answer any questions they might have, and help them transition to a new provider if needed. This will help the client to understand that their business is valued and that the decision was made with them in mind. 

Taking the time to talk to the client is the best way to ensure that they understand the situation and that the relationship ends on a positive note.

Explain your reasoning and listen 

When a client is being disengaged, they may feel a range of emotions, including disappointment, confusion, or even anger. It’s important to explain the reasons for the disengagement in order to ensure that the client understands the situation. This is especially important if the decision to disengage is not the client’s fault. 

Listening to the client’s concerns and allowing them to express their emotions can be difficult, but it is important to be respectful and understanding. It is also important to demonstrate empathy and be understanding of the client’s feelings. This can help to build trust and ensure that the client is not left feeling abandoned or alone. 

By providing a clear explanation, listening to their concerns, and being empathetic, disengaging from a client can be a positive experience for both parties.

Send a disengagement letter

Yes, you’ve already had the uncomfortable conversation, but your work isn’t done until the paperwork is finished. 

Once verbal communication regarding disengagement has taken place, it is important to follow up with a formal disengagement letter. This letter should include the reasons for the disengagement, any terms that were discussed, and the date on which the disengagement will take effect. 

It is important to note that the client should be given reasonable notice before the disengagement takes effect. If the client has any questions or needs clarification on any of the terms of disengagement, the letter should provide contact information for further discussion. Finally, the letter should include a statement wishing the client success in the future, as well as expressing gratitude for the client’s business. This letter should be sent via certified mail to ensure that the client has received it, and a copy should be kept for your records. Following these steps will ensure that the disengagement is conducted professionally and that the client is fully aware of the terms of disengagement.

Include the last date of your service with the client

When you are disengaging from a client, it is important to make sure that you include your last date of service. This will ensure that you are able to keep accurate records of the services that you have provided and make sure that your client is aware that you no longer will be providing those services.

It is also important to keep in mind that when you are disengaging from a client, you should take the time to thank them for the opportunity to work together and also to provide any tips or advice that may help them in their future work. You may also want to provide them with any referrals that you think may be useful for them. By including your last date of service when disengaging from a client, you are taking the time to be professional and show that you are a reliable and trustworthy service provider who is dedicated to their clients.

State your work status and upcoming due dates

When disengaging from a client, it is important to take the time to properly state the status of services you were performing and the upcoming deadlines for the things on your to-do list. This ensures that the client is aware of the progress you have made thus far and the upcoming deadlines. It is also a good opportunity to discuss any necessary steps that need to be taken to ensure that all services are completed in a timely and satisfactory manner. 

Furthermore, this conversation can provide the client with peace of mind that progress is being made and that the timeline for completion is clear. Additionally, it is important to be as transparent as possible when discussing the status of the project and to ensure that all deadlines are realistic and achievable. 

Taking the time to properly communicate the status of services and due dates when disengaging from a client, will ensure a smooth transition and leave both parties with a positive impression.

Include the status of the account balance

When disengaging from a client, it is important to include the account balance status. This allows the client to understand the current financial situation of the account and how the disengagement may affect their financial standing. 

The account balance status should include a full breakdown of the current balance, including any accrued interest, payments or credits, and any additional charges. It should also specify any pending payments and any other outstanding invoices, as well as any applicable fees or late charges. This information should be provided in a clear, concise format so that the client can easily understand the details and make an informed decision regarding the account. 

Additionally, the account balance status should be reviewed regularly to ensure accuracy, and any changes should be communicated to the client in a timely manner. With this information, the client can make an informed decision about their financial situation and the account going forward.

Carefully return and retain all the records

When disengaging from a client it is important to properly transfer the records to the client in order to ensure continuity of care and to protect the client’s privacy. 

It is also important to ensure that proper storage and archiving procedures are followed for all client records. This includes securely backing up digital records, in case of a data breach or technical issue. 

In addition, it is important to retain records in accordance with applicable laws and regulations. This may include retaining records for a certain number of years or providing copies of records to the client upon request. Properly transferring and retaining client records is essential to providing quality care and protecting the confidentiality of the client’s information.

Send the letter to multiple parties

When it comes to disengaging from a client, it is important to consider sending your letter to multiple parties. This will help ensure that everyone involved is aware of the situation and that their interests are taken into account. Sending your letter to all parties involved is a good way to show consideration and respect, and it can also help you avoid any potential legal issues that may arise from the disengagement. 

By sending your letter to multiple parties, you can also ensure that the information is accurately conveyed to everyone involved. Additionally, sending your letter to multiple parties can help to ensure that all of the necessary documentation is shared between all parties. This includes any paperwork that needs to be signed, any payments that need to be made, and any other information that is necessary for the disengagement to be finalised. 

Sending your letter to multiple parties will also help to ensure that any questions or concerns that the parties have been addressed in a timely manner. It is important to remember that disengaging from a client is a serious matter and can have long-lasting implications. Taking the time to consider sending your letter to multiple parties when disengaging from a client can help to ensure that the process is handled in a professional and respectful manner.