💼 How to Identify Your Most (and Least) Profitable Clients

Here’s the truth: not every client helps your business grow. Some drive profits, while others quietly drain your time, energy, and money.

At Smith CPAs & Associates, we help business owners uncover which clients truly contribute to the bottom line.

Here’s how you can start doing the same:

🔎 1. Go Beyond Revenue

Big contracts aren’t always big wins. Compare client revenue to the real costs of serving them (labor, materials, tools, travel).

🕒 2. Track Time & Scope Creep

If you (or your team) are constantly going over scope or putting in unbilled hours, that “good client” might actually be a loss-maker.

💳 3. Watch Payment Behavior

Consistently late payers hurt cash flow, eat up admin time, and increase financial risk.

📞 4. Review Support Load

Some clients demand 3x more support for the same fee. Every email, call, and revision matters to your margins.

🌟 5. Consider Strategic Value

Yes, some clients bring visibility, referrals, or credibility. Just be honest—don’t hide behind “strategic” if they’re consistently unprofitable.

⚖️ Final Thought: What You Don’t Measure Can’t Be Managed

Regular client profitability reviews help you:

✅ Reprice unprofitable accounts

✅ Refocus on high-margin work

✅ Double down on your best-fit clients

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