By Jerry Davis, CPA - Most successful CPA firms will tell you that it is all about relationships. That is easy to say when clients are successful and paying their fees. Now that the economy has slowed down, especially in the construction niche that our firm serves, these relationships are being put to the test. I am hoping this post will generate some discussion. I have a question that I am struggling with.
How do you handle clients that are having cash flow problems? For example, you have a great relationship with a client but they are several months behind on paying their fees. They have been a great client for several years and you want to do everything you can to help them. My personal side tells me that I need to ride out the storm with the client. My business side tells me that no matter how good the relationship is I have to get paid for my services. I think the answer is somewhere in between, I just don't know where.
Any input that readers can provide is greatly appreciated.