What is client onboarding for accounting firms?
Client onboarding is the process an accounting firm follows to take on a new client: checking identity and money laundering risk, agreeing and signing the engagement letter, collecting authorisations and documents, getting access to systems, and setting up the client's jobs, deadlines and billing. It ends when the firm can start the first piece of work.
Also calledclient intakenew client onboardingKYC for accountants
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- First step
- Identity and AML checks
- Agreement
- Engagement letter
- Ends with
- Jobs, deadlines and billing set up
How client onboarding works
Most steps follow a fixed order. Anti-money laundering rules require customer due diligence before the work starts: verifying the identity of the client and its beneficial owners, assessing risk and recording the result. The firm then issues the engagement letter, often from proposal software with payment details captured at signature. Next come authorisations to act with tax authorities, previous accounts and returns, access to the client's accounting software and bank, and a professional clearance request to the previous accountant where relevant. Finally the client is set up in practice management with recurring jobs, deadlines and billing. Onboarding software links these steps so data is entered once. Credas and SmartSearch run identity and AML checks, FibreCRM manages onboarding with risk assessments, Ignition handles proposals and engagement, and TaxDome collects documents through its client portal.
Common questions
What checks are needed before taking on a client?+
Customer due diligence under anti-money laundering rules: verifying the client's identity and that of its beneficial owners, assessing the risk and keeping records. Higher-risk clients need enhanced checks.
What is professional clearance?+
A request to the client's previous accountant asking whether there is any professional reason not to take on the client, and for information needed to continue the work.
How long does client onboarding take?+
From a day to a few weeks, depending mostly on how quickly the client provides identity documents, signs the engagement letter and grants access to records and systems.
Client onboarding software for accounting firms
CredasDigital identity checks for regulated client onboarding.Profile →
SmartSearchAML and identity verification for regulated firms.Profile →
FibreCRMCRM designed specifically for accountancy practices.Profile →
IgnitionProposals, engagement letters and automated billing.Profile →
TaxDomeAll-in-one practice management for tax and accounting firms.Profile →Part of Accountio’s accounting technology coverage · Glossary
