The onboarding process: What it is and why it’s important
Client onboarding: it’s where the accountant welcomes new clients, but it’s also a hugely important process to get right. From the client's perspective, you want to know that your new accountant is on top of things and ticking the procedural boxes to proceed.
From an accountant’s perspective, it’s a chance for us to set the tone for the relationship and demonstrate we really know our stuff with a smooth, efficient onboarding.
Let’s dive into the client-accountant relationship, what sort of documents you’ll need for the onboarding process, and the usual onboarding steps so you can enjoy a long-lasting partnership with your accountant and grow your business.
The accountant-client relationship: setting the stage
Client onboarding is potentially the most pivotal aspect of the client-accountant relationship. Why? Because it’s where we find out from you what it is you truly need from your accountant.
We know, of course, that busy business leaders and individuals like yourself want their accounting needs taken care of by a professional. But we need to get into the nitty-gritty to ensure we’re helping you take advantage of tax reliefs, giving you accurate updates on your finances and making the process as seamless as possible.
It’s also where we get all the admin out of the way, like anti-money laundering and ID checks, so that you can focus on running your business and we’ll crack on with the work.
What accountants need for onboarding
Accounting is a highly regulated industry with standards that are regularly updated.
For example, the anti-money laundering checks are pretty vital for accountants to get right: one recent case where a sole practitioner was fined close to £15,000 for failing to comply with the ICAEW’s anti-money laundering procedures is sadly all too common.
So with that in mind and to make the process as speedy as possible for you, as a client, be prepared to hand over the following documents:
Proof of identity: documents like a passport, driving licence or other photo IDs work.
Proof of address: a bank statement, council tax bill or utility bill are common proof of address examples.
Unique Taxpayer Reference (UTR): HMRC gives everyone a UTR when they first register for Self Assessment - you can find yours on previous tax returns. Your registered company will also have its own UTR, so send them both over to your accountant if in doubt.
Access to accounting system: If you use Xero, Quickbooks or another accounting software that keeps track of your books, you should give your new accountant these details.
Financial information: Any relevant tax returns, account reconciliations (if not already available via accounting software), bank statements and the like will be needed to get started.
Previous year’s financial statements: If you’re running a business and want the accounting handled for it then you’ll need to provide the previous tax year’s income statement, balance sheet and cash flow statement.
NI number: for anti-money laundering purposes and just to check you’re a real person!
Bank details: your accountant may want to set up a direct debit mandate if you use them consistently (rather than just for a season). It’s also handy if they have your details on record so they don’t need to ask you for them again.
What the onboarding process looks like
So, you’ve chatted about your accounting needs with a professional and decided to hire them as your new accountant - congrats! The first step is providing your ID to complete all the necessary verification - a scan is normally OK.
Once the anti-money laundering checks are complete and everything is above board, you’ll be prompted to review and sign some documents before you’re fully onboarded. These will include some terms and conditions that lay out the accountant’s terms, how payment will take place and what you need to do if you ever want to end the partnership.
You’ll also get a letter of engagement to sign, which essentially makes everything official and says the accountant is acting as your tax agent. The good news is you can often sign these virtually instead of printing them and sending them off in the post. Yay for technology! Your accountant might also ask you to sign up for their accounting systems as well, which can be done online.
Your accountant will then let HMRC know they’re now acting as your tax agent, and HMRC will send you a code to give to your accountant. It’s worth ensuring your details are up-to-date with HMRC to ensure the letters they’re sending with the code don’t go mysteriously missing.
Once everything’s in place, you’re ready to get started with your new accountant and take back some of your precious time so you can focus on other things.
Final thoughts
As a client, you shouldn’t have to put up with a sub-par onboarding process - so now you know how it should work when you’re partnering with a new accountant and you can see any red flags.
As you can see above, if critical steps are missing in the process or you’re not happy with how long things are taking, you can always walk away and find a new accountant that fits your needs better.
At BXD Accounting, we always take care to give our clients a smooth and simple onboarding experience. Book a call today if you have any questions about your tax affairs you’d like answered simply and effectively.