Camico Insurance is the second largest provider of liability insurance for CPAs, so when it comes to risky clients, they pay attention. In a recent article on Managing Risk in Desperate Times, John A. Dodsworth, CPA and CEO of Camico shared his advice for CPAs.
“The key is to identify risky clients sooner than later. Get to know their situations and make sure that they are getting good advice. Take an active role in helping them solve problems. It’s much easier to deal with trouble ahead of time than after the fact. The good news is that taking the initiative and helping a client through a difficult period can cement the client–CPA relationship.”
Two take-aways:
Take a good look at your business borrowers before it becomes obvious they are challenged.
- Which clients are losing customers?
- Which are making less money?
- Which are in breach of loan covenants?
- Which are in danger of losing their investors?
Take an active role in helping them solve their problems and you’ll cement a good relationship.
