Follow us:

  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram



When is it Time to Bid Farewell to a Customer?

May 17, 2021 10:51:00 AM Kathy Dise Small Business, Start-ups, For Accountants

tough clientThere will likely be a time when you are dealing with clients that may be negatively affecting your business. These are some of the red flags you should look out for:

Client Doesn't Pay on Time:

Anything over 90 days is a big red flag. Slow payment reduces your profit margin. This client may not be as profitable as you think. The more time it takes to pay you, the more likely your client will forget the great work you did for him or her. Your client is paying at least a few of their bills. Make sure you are one of them.

Break Even or Negative Margins: 

Look at the profit margins of all your clients, both short term (monthly) and long term. Pay attention to the smallest margins. Either lower expenses related to lower margin clients, charge the appropriate fee or maybe it is time to let them go. 

Not in Your Target Market:

Watch for job creep outside your core competency. Special accommodations quickly eat up resources and disrupt the flow of your business. 

Frustrating Communication: 

When clients do not respond to your requests, have unreasonable expectations or are abusive, you may need to say goodbye to that customer before they destroy your peace of mind any further. 

Reputation Risk: 

If you run the risk of tarnishing your own reputation because of a client, carefully weigh the options. You may feel loyal to a particular client because of a valued referral source, or because of another relationship connection.  However, if you know that they are involved in unethical business practices, get out--and get out quick!

Contact us at to see how we can help you.

New Call-to-action

Kathy Dise

Written by Kathy Dise

Kathy has over 30 years experience helping small businesses succeed. As a commercial lender, commercialization expert and now as a QuickBooks diamond level advisor, Kathy understands the challenges small business owners face. Her experience helps business owners quickly accomplish their financial goals. As the owner of BudgetEase, Kathy works with clients to develop a plan to efficiently process 1,000s of small transactions so owners can make informed decisions. She lives in Shaker Heights, OH with her husband Ralph and enjoys golf, curling and walking in Cleveland’s fabulous Metro Parks.