Welcoming a new client is an exciting milestone for any CPA firm, representing growth and fresh opportunities. And because onboarding is the firm’s first impression, it’s essential to get it right the first time, as there are no second chances to a positive and lasting impression.
An efficient onboarding process shows the client what they should expect from the CPA firm and helps them gain confidence and comfort in their choice. At the end of the onboarding process, it allows the CPA firm to get an initial understanding of the client’s situation and helps the firm determine the kinds of clients they want to work with as they grow.
A client onboarding checklist can take many formats, like “Client Questionnaire”, “Client Analysis” or one of the more efficient forms like a simple bookkeeping client onboarding checklist. The main goal is that the checklist must contain important information that lets both entities involved gain the necessary information that can provide a clear picture of what they can expect during the bookkeeping service.
This blog is a guide for CPA firms that are in the process of creating or updating a bookkeeping client onboarding checklist for their bookkeeping clients
Bookkeeping Client Onboarding Checklist That Should Be Your To-do
An effective bookkeeping client onboarding checklist is one that helps CPA firms standardize compliance processes. It also provides insights into the client’s history and background while giving clues about the effectiveness and capabilities of the CPA firm’s services. The list below can be used by CPA firms as a template and guide for their client onboarding process.
1. Did you send a “Welcome Aboard” message?
An official Welcome Aboard message is intended to confirm the beginning of the relationship with your client and to start you off on a positive note. The beginning of your communication is very important, as it establishes the tone for the remainder of your interaction. A Welcome Aboard message will help you set the tone for your client’s relationship with you, and will help establish clear, professional lines of communication. A Welcome Aboard message also provides your client with a way to understand what they can expect from you in terms of next steps and allows your client to establish a point of contact before diving into more technical financial questions.
2. Did the client receive basic information about your firm?
By being educated about a CPA firm, a client will gain a better understanding of how it operates and the types of performance and specialties it offers. This also allows the client to gain a better overall picture of the accounting firm (CPA). The more the accounting firm provides information about its capabilities to the client, the greater the chance of client confidence in the firm’s ability to meet or exceed the client’s expectations and needs.
3. Did the client sign the initial acknowledgement and other documentation?
Obtaining a client’s signature on acknowledgement documents is an important risk management and compliance safeguard. It formalizes the client’s understanding and acceptance of the initial Terms & Conditions and Financial Policies, Privacy Policies, Data Security Policies and Responsibilities, establishes mutual understanding of the basic operational “ground rules” before substantive work can begin, and protects the client and the firm by clarifying and documenting consent for the onboarding process and the handling of client data.
4. Have we initiated and cleared the client acceptance background and conflict checks?
In conducting the due diligence of your prospective client, conducting the background and conflict checks are essential to protect the firm’s reputation as well as maintaining the highest ethical standards. These checks are used for two main reasons, the first being to validate the identity and legitimacy of the client to help prevent any potential fraud or illegal activity; the second to ensure that there is no existing relationship or obligation that could cause the firm to have a conflict of interest or affect the quality and confidentiality of the firm’s work with the new client.
5. Have we confirmed the client’s legal business structure (e.g., S Corp, Partnership, Sole Proprietor)?
Understanding how the client is legally structured is essential to a CPA firm’s service offering and practice. This information will define the accounting principles employed, the tax reporting obligations and regulations imposed on the client, and the financial compliance standards that apply. Additionally, how the business is structured will ultimately determine which tax forms the client will be required to submit, as well as deeply influence the financial strategy and reporting requirements of the client.
6. Has the signed engagement letter/contract been secured, outlining the exact scope of services, fees, and payment terms?
The engagement letter or contract is signed only once and marks the most important stage in establishing the professional relationship between you and your client. This document defines the services that will be provided under professional engagement and the charges for those services. It also outlines the payment schedule, terms of payment, and provides a mechanism to avoid any expansion in the scope of the project beyond its original intent and clarify expectations. Establishing a legally defensible framework for both parties during the engagement.
7. Did we obtain all the necessary tax forms from the client?
This operational check ensures all specific tax documentation relevant to prior periods or employee/vendor status has been successfully gathered. This step confirms the completion of the data collection phase necessary for accurate tax preparation or ongoing compliance work, ensuring no critical information is missing before starting substantive service delivery.
8. What specific software has the client been using for bookkeeping so far? Also, are there any issues integrating our internal systems?
It really matters what the client’s current bookkeeping software is, as it is a technical necessity that dictates the initial setup and integration strategy. The purpose is to assess compatibility with the firm’s internal systems and identify potential integration issues proactively. This assessment helps determine if data migration is necessary, if specific training is required for the team, or if a seamless automated data link can be established. This ensures a smooth transition to ongoing service without data bottlenecks.
9. Have clear communication protocols been established with the client?
Communication guidelines are crucial for establishing expectations and creating a successful working relationship. With the guidelines in place, you will know how you prefer to communicate with clients (i.e., via Email, a designated Portal, or by phone), how quickly you can expect responses, and when to escalate issues if necessary. With these guidelines in place, you will experience less frustration, receive information on time, and keep a professional tone throughout the duration of your business together.
10. Do the client’s existing books require any initial cleanup before beginning service begins?
As part of an initial diagnostic assessment, it is vital to establish if the current books of account require an initial cleanup. The assessment will establish if the historical records reflect accurate, complete, and reliable information that can be used to provide ongoing services. A necessary step with a cleanup will assist in preventing erroneous data from being perpetuated on statements generated during the period that services are continuing, ensure that there will be clean data available in the system for use throughout the service period, and require a separate phase of the project designated strictly for cleaning up the data prior to starting the regular cyclical service phase.
Conclusion
The client onboarding checklist provides a wide range of benefits to CPA firms, most notably saving time and resources. It decreases the likelihood of overloading clients with information during the initial stages of onboarding and gives the firms access to existing data on their clients, which will help them be better prepared when they interact with new clients.
By using a standardized client onboarding checklist, CPA firms also make their own jobs easier to manage while providing clients with a high level of services designed specifically for them. Additionally, standardizing the onboarding procedures allows CPA firms to create specialised onboarding methodologies for every area of service they provide, not just bookkeeping, which will allow CPA firms to provide the most efficient and informative onboarding process possible to their clients.
