Enough Advance Notice to Disengage

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#1
Posts:
2612
Joined:
24-Jan-2019 2:16pm
Location:
North Shore, Oahu
In our area, it's very hard to find firms that will take clients.

The business that we wish to disengage with is a typical non-compliant, non-responsive, always owes a balance, always owes us money, ignores our requests for 6 months but then needs it tomorrow, have to do extra work because of their non-compliance ......type. (ever have one of those?) :lol:

We currently provide payroll, income tax, and sales tax filing services. It would be nice to break clean for 2021.

Would it be wrong in anyway to give only 30 days notice that we would not be providing services to this business?

Is it wrong that we never warned them, "be compliant or we will fire you"?

Do I need to warn them and THEN give them 90 days notice when they don't comply?

We are on an island. Accountability is a big part of our culture here.
 

#2
Wiles  
Posts:
5058
Joined:
21-Apr-2014 9:42am
Location:
CA
They can find somebody in 30-60 days to handle their 2020 income taxes and sign up with a payroll service for Jan 2021 payroll
 

#3
ATSMAN  
Posts:
2094
Joined:
31-May-2014 8:34pm
Location:
MA
In the normal course of business I give my clients a full year (tax season) to find another tax preparer. For example I disengaged with 5 clients this year and after I prepared their 2019 return, I handed them the disengagement letter. I do not do payroll anymore so that helps a bit because those are really difficult to get rid of. I had developed a relationship with another provider so I would suggest a transition to them if the client agreed.
 

#4
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
60 days notice is plenty. I'm not really a betting man, but I bet they could find another provider in a week if they made doing so their number one priority.

I wouldn't ever give warnings to a client that they may be let go. Everyone is an adult. If you have to give warnings, they are causing more problems and inefficiency than they're worth and the relationship has already deteriorated.

You may want to consider sending both an email and certified USPS mail to give notice to the client type you described.
 

#5
JAD  
Posts:
4025
Joined:
21-Apr-2014 8:58am
Location:
California
I had a complicated situation with some trusts, a 45 day deadline, and an trustee who crossed the line in terms of how he spoke to me. That weekend, I cut him loose by email, cc to his attorney and the other trustee, and I was quite clear about the finality of the situation. I cc'd the email to my liability insurance carrier and said "we may have an issue" because of the 45 day deadline. They said I did the right thing - cut a difficult client loose as soon as possible. The approaching deadline did not concern them at all.
 

#6
Posts:
1174
Joined:
21-Apr-2014 7:09pm
Location:
NC
I am disengaging and or trying to disengage from several. I simply CANT leave them in a pickle with COVID. So I have decided to do them one more year as the stress of COVID, PPP etc I can’t simply leave them.

I will , after 5/15/21 tell them . BUT I wanted to tell them on June 1 2020 but with COVID, I couldn’t / wouldn’t do that to them in a bad place.


The clients I have parted with last year I gave them 1 year to find a new accountant. Basically told them ..I will do your 2019 tax return but please understand it will be my last.

I am basically eliminating all clients I do not manage money for but they are good people and don’t deserve to be treated poorly. Good luck with your decision BUT IMO, 60 days is not fair to them unless they are simply 1040 clients.

I should add..these are GOOD clients. pay on time etc.... I simply transitioned to CFP work so our situations are a little different.
 


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