In the Accounting and Tax profession, growth is often measured by addition - more clients + more staff = more revenue.  Instead of the traditional - what would it look like if sustainable growth instead was a function of reduction, simplification, and elimination of what is not working or simply, no longer a good fit?  One way to do this is via strategic client offboarding, which enables firms to refine their service offerings, client base, and value proposition by focusing resources where they create the greatest impact (ROI!).  That’s how reduction will indeed strengthen a company’s business model.

The Specifics

The Challenge of Client Misalignment

As firms get clarity and define vision, value proposition and ideal client —they inevitably encounter clients who no longer fit.  Retaining misaligned clients WILL lead to inefficiency, strained capacity, and missed opportunities to deliver higher-value advisory work.  Complicating matters is the fact that transitioning clients comes with challenges such as maintaining goodwill, preserving firm reputation, and giving up control because of said handoff.

What Offboarding Options are there and What are the Pros vs Cons?

• Price Increases - Simple to implement, erodes trust if not communicated tactfully.

• Referrals to Other Service Providers - Helps maintain goodwill, risk is ‘throwing the baby out with the bath water’ if the firm receiving referral is not up to par.

• Service Termination - Only recommended with Clients that are out of alignment with provider rules of engagement, and simply a non-ideal client that is unprofessional or unreasonable.  Boundaries are critical and when crossed – must be upheld to protect your People and your firm’s long-term integrity.

• Monetizing Offboarding - Offboarding to partner or peer firms can strike the balance between meeting Client and Service Provider needs.  Clients are referred to vetted professionals, freeing up business owners from acting as middleman in what is now another critical function to fill.  Also, appealing from a disruption minimization approach is additional support to the new firm so that handoff is seamless and productive. 

These various approaches vary in tension across efficiency, risk, and reputation.

Key Takeaways:

The traditional path of endless client acquisition (and resultant staff hiring) is no longer the sole or even best way to grow.  Strategic offboarding, when done thoughtfully, positions firms to thrive by focusing on their strengths and most valued relationships.

• Growth in professional services is not just about acquiring new clients, sometimes it requires thoughtful disengagement.

• Standard offboarding approaches (price hikes, peer referrals, abrupt terminations) may carry pitfalls such as brand erosion and weakened relationships.

• A deliberate client transition procedure is more credible, safeguards connections, and fortifies a firm’s long-term positioning.  

• Intentional offboarding opens bandwidth to focus on high-value advisory services and ideal clients, driving lasting (and more profitable) success.