Protect Your Practice: Mastering Client Re-Evaluation and Engagements
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They say the client is always right. But what if the client is just... not right for you?
In a world of endless deliverables and mounting compliance risks, too many accounting practitioners are stuck with clients who drain time, energy and profitability. If you're still clinging to legacy clients out of habit, it's time for a reframe. Welcome to the accountant's version of spring cleaning: client re-evaluation and engagement renewal.
Why Client Re-Evaluation Isn’t Optional Anymore
Your practice has evolved. Has your client list?
Legacy clients might still be riding on old engagement terms, scope creep, or outdated expectations. The result? You're doing more than you're paid for—and taking on risks you didn’t sign up for.
Here’s what’s at stake:
Increased liability when regulators come calling
Misaligned service scopes leading to burnout or billing disputes
Unethical or uncooperative clients risking your reputation.
Re-evaluating clients annually, or after any red-flag moments is now a best practice, not a nice-to-have.
The Re-Evaluation Framework: Risk, Relevance, Reward
Ready to take stock? Ask these four questions for every client:
Risk – Are they a compliance risk? Do they provide clear records and timely approvals?
Relationship – Do they respect boundaries, or are they 9pm texters with 9am expectations?
Relevance – Do they still fit your ideal service offering?
Reward – Are they profitable, or are you subsidising their chaos?
Also, conduct a service scope check. What are you actually doing vs. what your engagement letter says? If there's a gap, it's time to fix it.
How to Onboard Clients Effectively (and Protect Your Practice)
A strong client onboarding process does far more than impress new clients—it sets boundaries, protects your firm from risk, and builds a foundation for a long-term working relationship. Here's how to onboard clients in a way that’s proactive, professional, and profitable.
Preparation: Gather Client Information Before Signing
Before committing to any engagement, gather detailed background information using a structured Client Information Form. This form should collect:
Full legal names and IDs
Business registration numbers (PTY, CC, Trust, etc.)
Tax reference numbers (Income Tax, VAT, PAYE)
Annual return or year-end dates
Physical and postal addresses
Key contacts and communication preferences
Services previously rendered and preferred language
Signed approval from internal teams (finance, tax, secretarial, etc.)
Purpose: This foundational data helps you assess the client’s readiness and fit—and eliminates back-and-forth once work starts.
Client Risk Assessment: Use a Structured Acceptance Review
Don’t skip this step—it’s your due diligence firewall.
Use a Client Acceptance Form to screen for red flags and assess the engagement’s risk level. Questions include:
Were there disagreements with previous auditors?
Is the client part of a complex or high-risk group?
Is there a history of tax issues or legal disputes?
Does the client have a high public profile or multinational reach?
Do you have sufficient team capacity to take them on?
Based on your answers, determine if the client should be accepted, rejected, or flagged for further review.
The Initial Meeting: Expectations, Scope, and Communication
Once the client is pre-approved:
Walk them through the scope of services—what’s included (and what’s not).
Define client responsibilities and timelines for document submission.
Set communication ground rules—response times, preferred channels, and escalation protocols.
Clarify how delays or scope creep will affect fees or delivery.
This meeting helps eliminate future misunderstandings and miscommunications that often lead to dissatisfaction or liability.
Engagement Letter: Your Legal and Professional Shield
Now that you've qualified the client and agreed on expectations, it’s time to document everything formally. The engagement letter is not just a formality—it’s your safety net in case of disputes, delays, or client complaints.
Include:
Scope of services (what's included and excluded)
Client responsibilities
Deliverables and timelines
Fee structure and payment terms
Late payment and disengagement clauses.
Internal Workflow Activation
Once the engagement is signed, activate internal workflows by adding the client to your CRM or practice management system. Create job templates tailored to the services being provided, assign deadlines, and designate task owners across your team. Set up automation for recurring tasks to streamline operations and reduce manual oversight. Ensure that all relevant departments—such as finance, tax, and secretarial—are aligned and have the necessary information to support the new client.
Welcome Process
Follow up the administrative setup with a professional and friendly welcome. Send a branded welcome email that outlines next steps, introduces key contacts, and provides login credentials for any client portals or software platforms. Use this opportunity to reinforce your professionalism and customer care. Schedule a follow-up check-in within the first 30 days to ensure everything is running smoothly and that the client feels supported and informed.
Join CIBA’s webinar on Time to Let Them Go? How to Re-Evaluate Clients and Get Engagement Letters That Stick and get practical tips on how to evaluate clients.
Tired of unpaid work, unclear boundaries, or clients who no longer fit your firm? This webinar is your practical guide to running a practice on your terms—with the right clients, clear agreements, and zero guesswork. Join us to learn:
✅ How to re-evaluate clients without drama, and why it’s critical for your compliance and cash flow
✅ What every accountant must include in engagement letters (and what happens if you don’t)
✅ The big differences between new engagements, renewals, and quick amendments
✅ What to do when a client’s no longer the right fit—and how to exit ethically and professionally
✅ Real-world red flags, fee risks, and legacy client traps that are holding your practice back.
