Effective communication is the cornerstone of any successful professional relationship. For accountants and bookkeepers, this communication is not only about discussing numbers and finances but also about handling difficult and potentially uncomfortable conversations with clients. 

Whether it’s discussing late payments, addressing errors, or communicating unexpected news, knowing how to manage these situations is crucial for maintaining a healthy and productive client relationship. Thankfully, with the appropriate tools and effective communication practices, you can smoothly navigate these instances, and simplify things for both you and your clients.

In this article, we will discuss the most challenging awkward conversations that often pose dilemmas for accountants and bookkeepers. Additionally, we will provide you with actionable steps and suggest useful tools to empower you in handling these conversations confidently and with a clear perspective. 

Let’s go.

A guide for accountants and bookkeepers to manage 10 awkward client conversations

 

10 awkward client conversations and strategies for easing the discomfort

1. First meeting with the prospective client

The initial meeting with a potential client is similar to the first chapter of a book – it sets the tone for what follows. However, it’s not uncommon for this encounter to be accompanied by a sense of awkwardness, both on the part of the accountant or bookkeeper and the prospective client. 

Here’s how you can deal with this initial awkwardness and make the most out of your first meeting:

• Be Prepared and Confident: Preparation is key. Research the prospect’s business, industry, and any specific challenges they might be facing. Knowledge is confidence, and confidence minimizes awkwardness. Familiarize yourself with your own services, successes, and what sets you apart.
• Initiate a Relaxed Environment: Begin the conversation on a lighter note. Small talk about non-sensitive topics, like weather or local events, can help ease into the meeting. Smile, maintain eye contact, and create a welcoming atmosphere to put both parties at ease.
• Establish Common Ground: Find common interests or experiences that can bridge the gap. Shared experiences can act as great conversation starters and help build a sense of rapport, breaking down initial barriers.
• Clarify Objectives and Expectations: Clearly define the purpose of the meeting and what both parties hope to achieve. Setting expectations right from the start ensures that the conversation remains focused and productive, reducing any potential discomfort.
• Listen Actively: Give the prospect ample space to express their thoughts and concerns. Practice active listening – not just hearing, but truly understanding what they are saying. This demonstrates your genuine interest and attentiveness.

2. Following-up with a client

You’ve just concluded a promising discovery call, and the client is enthusiastic about moving forward. To kickstart the relationship on a positive note, you use a professional proposal and engagement letter template, emphasizing a professional and engaging client experience from the very beginning. Simplifying the process, you facilitate online signing- eSignature for their convenience.

Initially, everything aligns seamlessly with your strategy. The proposal is sent, aligning with your plan. However, after sending your proposal, you find yourself in a situation where hours go by without any response, and those hours gradually extend into days. Now, you’re faced with the somewhat uncomfortable but necessary task of following up.

Here’s how you can follow-up with prospect without feeling awkward:

• Establish Clear Expectations: During your initial client meeting, inquire about their preferred method and timing for follow-ups post-proposal submission. This information will guide your approach and avoid any discomfort.
• Construct a Robust Follow-up Message: Reiterate the pivotal discussion points from your meeting in your follow-up. Offer a distinct call-to-action, streamlining the process for the client to proceed without any confusion.
• Optimize Your Follow-Up Process by Incorporating Automation: Use Fresh Proposals to effortlessly automate follow-ups. Tailor the automated reminders by setting specific waiting durations and determining the number of reminders to ensure timely and systematic follow-up.

3. Turning down the prospects

In the world of accounting and bookkeeping, you’ll inevitably encounter scenarios where you need to decline potential clients. This could be due to various reasons, such as a mismatch in services, a full client roster, or a conflict of interest. 

However, turning down prospects requires finesse and tact to maintain a professional image and potentially leave the door open for future opportunities.

• Communicate Clearly and Promptly: Responding in a timely manner is respectful and shows professionalism. Clearly express your reasons for declining the prospect, ensuring your message is concise, honest, and focused on your business capacity or areas of expertise.
• Offer Alternatives: If possible, provide recommendations or referrals to other professionals or firms that might better suit the prospect’s needs. This gesture showcases your commitment to helping, even if it’s not a direct partnership.
• Maintain a Positive Tone: Keep your message positive and appreciative, emphasizing that you value the opportunity and are honored they considered your services. Offer to answer any additional questions they might have.

4. Dealing with out of scope requests

As an accountant or bookkeeper, you’re familiar with the significance of a defined scope of work in any engagement. It sets the boundaries and expectations for both you and your client, ensuring a clear understanding of what’s included in the service and what’s not. 

However, the dynamics of projects can change, necessitating adjustments to the agreed-upon scope. Additionally, clients might make requests that fall outside this scope, venturing into what’s known as “out-of-scope” work.

Here’s how  to deal with it:

• Establish Clear Expectations: Begin by ensuring that you don’t commence any work until you have a signed engagement letter. This ensures a shared understanding of deliverables and value right from the outset. The engagement letter should explicitly outline the scope of work, detailing what’s included and what’s not.
• Anticipate Scope Changes: Within your proposal, incorporate provisions for out-of-scope work, clearly communicating that such deviations will result in additional costs. By doing so, you set expectations early on regarding potential changes and their financial implications.
• Frequent and Transparent Communication: Maintain a steady line of communication with your client, especially concerning any alterations in the project’s scope. If modifications are necessary, promptly send an updated engagement letter clearly delineating the revised scope and associated costs.
• Assertive Communication: Should your client request work beyond the agreed-upon scope, handle the situation with a balance of respect and firmness. Address the request promptly and confirm the details in writing, either through a review or a new engagement letter. 

5. Discussing delays in deliverables

Discussing delays in deliverables with clients can be an uncomfortable conversation, but it’s a crucial one for maintaining transparency and managing expectations effectively. Here’s a detailed elaboration on how to navigate this challenging discussion:

• Initiate the Conversation Promptly: As soon as you are aware of a delay, inform your client promptly. Silence or procrastination can exacerbate the situation and erode their trust. Addressing the delay early shows professionalism and respect for their time and expectations.
• Be Transparent and Honest: During the conversation, be transparent about the reasons for the delay. Clients appreciate honesty and openness. Whether it’s an internal issue, an overload of work, or an unexpected event, clearly communicate what caused the delay.
• Apologize and Take Responsibility: Express a sincere apology for the inconvenience caused by the delay. Take responsibility for the delay, even if it was due to factors beyond your control. Clients value professionals who can admit to mistakes and take ownership of their actions.
• Present a Revised Timeline: Provide a realistic and revised timeline for the completion of the deliverables. Ensure that this new timeline is achievable and aligns with your current workload and commitments. Set clear expectations to rebuild trust.

6. Discussing pricing with clients

Discussing pricing can be one of the most uncomfortable aspects of client interactions for accountants and bookkeepers. However, it’s a crucial conversation to have to ensure both parties are on the same page regarding financial matters. Here’s how you can discuss pricing without awkwardness,

• Initiate with Confidence: Approach the discussion with a confident and professional demeanor. Your confidence will set the tone for the conversation.
• Focus on Value: Shift the conversation from cost to value. Highlight the benefits and value your services bring to the client’s business.
• Use Comparisons Wisely: Utilize industry benchmarks or competitor pricing (where appropriate) to justify your rates. Show how your services provide added value for the cost.
• Propose Multiple Options: Offer different service packages or pricing tiers using tiered pricing examples. Providing options can help clients choose a plan that suits their needs and budget.
• Be Open to Negotiation: Allow some room for negotiation while ensuring it aligns with your business’s financial goals. Flexibility can foster a positive client-provider relationship.

7. Dealing with late payments

Late payments can disrupt the cash flow of any business, causing considerable stress and inconvenience for accountants and bookkeepers. The scenario is familiar: you’ve provided your services diligently, but the due payment is delayed. This can strain your own financial stability and the smooth functioning of your firm.

Preventing late payments is not only about addressing the issue when it occurs but also about setting the right expectations and systems in place to avoid it from the start. 

Best practices for prevention

• Clear Payment Terms: Clearly define payment terms in your engagement letter, including due dates, accepted payment methods, and any penalties for late payments.
• Regular Client Communication: Maintain open communication to remind clients of upcoming payments and address any concerns promptly.
• Automate Invoicing and Reminders: Use Fresh Proposals- proposal software to automate the payment process, ensuring clients receive timely and automated payment reminders.
• Early Engagement: Discuss payment expectations at the onset of your engagement, setting a professional tone for the relationship.
• Offer Early Payment Incentives: Encourage early payments by offering discounts or other incentives to clients who pay ahead of the due date.

8. Communicating price increase with clients

As an accountant or bookkeeper, one of the inevitable decisions you’ll face in your career is raising your prices. It’s a fundamental step towards business growth and sustainability. Over time, your expertise grows, and the value you provide increases. 

Adjusting your pricing to reflect this growth ensures that your business remains viable and competitive in the market. However, informing your clients about a price increase can be daunting.

Here’s how you can navigate this conversation.

• Personalize the Message: Tailor your communication to each client, addressing their specific needs and showcasing the value they’ll receive.
• Schedule a Meeting: Arrange a face-to-face or virtual meeting to discuss the changes. This allows for a more personal and interactive approach.
• Be Transparent and Direct: Clearly explain the reasons for the increase, detailing how it will benefit the client by enhancing the quality of service or support.
• Listen to Concerns: Be open to questions and concerns, and address them empathetically. Clients need to feel heard and understood during this transition.
• Offer Alternatives: Provide options to mitigate the impact of the increase, such as package adjustments or additional services.

9. Communicating mistakes with clients

Addressing errors and communicating them to clients is an integral part of maintaining transparency and trust in a professional relationship. Here’s a step-by-step guide on how to effectively communicate with clients when mistakes happen:

• Recognize the Error and Understand its Impact: The first step is to acknowledge the error and comprehend its implications on the client’s financials or project. This shows your commitment to rectifying the mistake and preventing it from recurring.
• Take Responsibility: Be accountable for the error. Avoid blaming others or external circumstances. Taking responsibility builds credibility and showcases professionalism.
• Offer Solutions: Propose viable solutions to rectify the error and mitigate its impact. Clients appreciate proactive problem-solving and are more likely to maintain trust if they see your dedication to resolving the issue.
• Apologise and Express Regret: Offer a sincere apology for any inconvenience or distress caused. Expressing regret demonstrates empathy and genuine concern for your client’s well-being.
• Prevent Future Recurrence: Outline the measures you’ll implement to prevent a similar error in the future. Reassure the client that you are taking steps to enhance your processes and avoid repetition.

10. Ending relationship with the client

Ending a client relationship is never an easy task, but sometimes, it’s necessary for various reasons like a client being uncooperative, not adhering to terms, or a conflict of interest. 

Here’s a step-by-step guide on how to end a client relationship professionally and amicably:

• Assess the Situation: Begin by evaluating the situation objectively. Ensure that ending the relationship is indeed the best course of action considering the circumstances and the impact on your business.
• Review the Engagement Agreement: Revisit the engagement letter or agreement you had with the client. Check for any termination clauses or conditions that need to be met when ending the relationship.
• Schedule a Meeting: Choose an appropriate time to meet or have a call with the client. The conversation should be respectful and conducted in a manner that clearly communicates your reasons for discontinuing the relationship.
• Communicate Clearly: During the meeting, be transparent and honest about your decision. Clearly articulate the reasons behind the termination, keeping the conversation professional and avoiding blame or accusations.
• Offer Assistance with Transition: Offer to assist the client in transitioning to a new service provider. Provide necessary documentation, files, or information that can ease the handover process for the client.
• Ensure Compliance with Ethical Obligations: Make sure that you adhere to all ethical guidelines and regulations relevant to your industry when ending a client relationship. This might involve providing adequate notice or fulfilling specific requirements.
• Protect Sensitive Information: Safeguard any sensitive information the client shared with you during your engagement. Discuss with the client how they want their data handled or transferred.
• Follow Up in Writing: After the conversation, send a formal letter or email to the client reiterating the discussion points, the termination date, and any actions agreed upon during the meeting.
• Wind Down Projects Smoothly: If there are ongoing projects, ensure a smooth transition by completing them professionally or assisting the client in finding an alternative solution.

Conclusion

Navigating awkward conversations with clients is a skill that improves with practice and empathy. By implementing the strategies outlined in this guide, you’ll enhance your ability to communicate effectively, resulting in stronger client relationships and a more successful accounting or bookkeeping practice. Remember, embracing these conversations constructively can lead to better understanding, improved client satisfaction, and a prosperous professional journey.