Let’s face it; no business runs forever without a few difficult clients. But before you rush to drop them, it’s worth asking: is it a bad client… or just a bad fit?

At Carthy Accountants, we often remind business owners that a 'bad client' isn’t always a bad person or bad business. Sometimes, it’s just a misalignment of values, expectations, or communication, and that can be fixed.

Not every bad client needs firing. Sometimes, they just need a reminder.

Step One: Educate Before You Eradicate

Our mantra for years has been Educate → Eradicate.

When a client’s fallen behind on payments, ignored advice, or lost touch, it’s easy to label them as “bad”. But often, they just need educating and re-engaging. Maybe they don’t realise how their actions affect your workflow, or how much behind-the-scenes effort goes into serving them.

Here’s how to start:

• Remind them of agreed boundaries and payment terms
• Re-explain your processes and the value behind them
• Give them a chance to correct course

If they respond positively, great! You’ve rescued the relationship and avoided unnecessary stress for everyone.

Step Two: Know What Alignment Looks Like

A bad client for one business could be a perfect fit for another. It all comes down to alignment, shared expectations, values, and working style.

At Carthy, for example, we expect clients to pay by direct debit when invoices are due. Other firms might allow more flexibility. Neither approach is wrong, but if it doesn’t align, frustration will follow.

Alignment keeps relationships respectful, predictable, and healthy. And it’s something every business owner should check in on regularly, not just when things go wrong.

Sometimes you’ve done all you can, and it’s time to part ways. Here’s how to do it respectfully, without burning bridges.

Step Three: When to Say It’s Time to Part Ways

Sometimes, despite your best efforts, it’s just not working.
And that’s okay.

As we put it in our Business Success Conversation, 'There’s no point in closing doors. You can part ways respectfully and still cross paths in the future.'

If you reach that point:

• Be honest and professional
• Keep communication open
• Leave things amicable as you never know when circumstances might change

In business (and in life), people remember how you made them feel, not just what you did.

Step Four: Identify the Real Reason

Before ending any client relationship, take time to ask:
Why has this relationship really broken down?

Is it:

• Late payments because of their own cashflow problems?
• Poor communication because of stress or personal issues?
• A growing mismatch in service expectations?

Understanding the cause protects your business and your reputation and may even reveal ways to prevent future misfits.

Get the Business You Want

Bad-fit clients happen, but they don’t have to drain your energy or damage your reputation.
With clear communication, consistent boundaries, and a bit of education, most relationships can be realigned. And if not, parting on good terms keeps your business stronger for it.

👉 If you’re facing client challenges and want help building the right kind of relationships, get in touch today.