Getting off to a great start with your new small business tax or bookkeeping clients sets the stage for a successful and long-lasting partnership.
But there’s a lot to keep track of in those crucial first moments when you’re onboarding a new client. With so many moving pieces, how can you keep track of everything and set you and your clients up for success?
An onboarding checklist can help. With a solid checklist ready to go, you can gather basic information on new clients, along with any records, documents, and processes you need to offer more comprehensive financial services.
Just picture this: efficient workflows, happy clients, and a prosperous business that continuously attracts new clients. That’s the power of a well-crafted onboarding checklist! It saves you time, improves customer experience, and strengthens your reputation as a trusted financial advisor.
As seasoned pros in tax and bookkeeping, our team at Workflows for Tax Pros knows firsthand how an efficient and stress-free onboarding process can transform your practice. That’s why we’ve put together this series of checklists to share our expertise.
From collecting those initial details to setting up communication and billing preferences, we’ll cover everything you need to know about mastering the art of client onboarding.
Basic Checklist for Onboarding Tax or Bookkeeping Clients
The first step in a successful onboarding process is gathering all the initial information you need to carry out your tax or bookkeeping services effectively. Regardless of the scope of the work, securing the following information is crucial:
#1 Client Business Details
Providing an onboarding questionnaire to gather clients’ basic business information at the beginning of your partnership makes your job much easier moving forward.
It removes the unnecessary back-and-forth of requesting additional details from your clients — with this one step done, you’ll already have everything you need!
A checklist of business details includes:
- Registered business name: The legal name under which the business operates.
- Entity type: For example, S-Corp, C-Corp, LLC, Partnership, Sole Proprietorship.
- Employer Identification Number (EIN): The federal tax ID number issued by the IRS.
- Business address and contact details: The physical location of the business and its email address, phone number, and social media accounts.
- Primary and secondary contact information: Key contacts within the business for communication purposes. For example, the owner, primary decision-maker, and secondary contacts.
#2 Engagement Letter
Another must-do step in the basic onboarding process is establishing a formal agreement with each client. This means drafting and signing an engagement letter or contract that clearly outlines your services, all associated fees, and the terms of your partnership. This sets clear expectations for the client relationship right off the bat.
Discuss your client’s situation to decide on the exact scope of the services they’ll need. For example, monthly bookkeeping, financial statement preparation, or other agreed-upon tasks. Make sure they’re clear on the cost of each service you provide to avoid any confusion down the road.
Don’t forget to ask for the client’s signature on the agreement and to keep a copy for your records in case it needs to be referred to later.
Additional Tax Preparation Client Onboarding Checklist
You’ll need to add a few more items to your onboarding checklist if you offer tax preparation services. Gathering these will make the onboarding process more efficient, guarantee compliance with tax laws, and allow you to provide tailored financial advice to each client.
These key items include:
- Past tax returns: Copies of the client’s previous tax returns will help you better understand their financial history and identify recurring patterns or potential issues.
- Audit letters or communications from tax authorities: Access to audit letters or communications from tax authorities like CRA (Canada Revenue Agency) allows you to quickly address previous or ongoing tax issues.
- Basic tax-relevant business details: Key tax-related facts about the client’s business. For example, does it have contractors or full-time employees? These details are needed to accurately assess tax obligations and deductions.
- Business activities: The client’s business activities, including any significant changes or expansions during the tax year. This ensures all income and expenses are correctly accounted for.
- Tax compliance obligations: Details about applicable laws regarding tax regulations specific to each client’s industry or location help you swiftly address potential compliance issues.
- Tax credits and incentives: Information on any tax credits or incentives the client may be eligible for, allowing you to maximize their tax benefits.
- Ownership changes: The details of any business ownership changes or equity transactions that may affect tax obligations or filings.
Adding these extra items to your onboarding checklist, you’ll enjoy a thorough and effective tax preparation process. The result? Better outcomes for your clients and a smoother workflow for your practice.
Additional Bookkeeping Client Onboarding Checklist
We’ve covered the essentials for tax prep, but bookkeeping has its own unique needs. To guarantee a smooth transition and accurate financial management, here are some extra items to add to your basic onboarding checklist for bookkeeping clients:
#1 Financial Records and Documentation
Having access to your new clients’ financial records is a must for providing complete and accurate financial management.
These records include:
- Previous financial statements: Comprehensive balance sheets, income statements, and cash flow statements for the last fiscal year.
- Tax returns (3 years): Complete tax returns for the previous 3 years to ensure accurate financial reporting.
- Bank and credit card statements: Detailed bank and credit card statements covering the past 6 months to reconcile transactions.
- Accounts receivable and payable: Updated lists of outstanding accounts receivable and payable for current financial obligations.
- Payroll information: Payroll reports for the current year, details of payroll service providers, and issued W-2s and 1099s.
- Expense documentation: Receipts, invoices, and petty cash logs, where applicable, to track and validate business expenses.
#2 System and Software Setup Checklist
By correctly setting up all bookkeeping systems and software, you guarantee all your clients’ information is organized, secure, and easily accessible, allowing for effortless operations.
Here’s a comprehensive checklist to follow:
- Set up your client information hub: Use TaxDome Wiki to store all client-specific information in one easy-to-access location for efficient information management.
- Client account access: Request “Accountant” access to all your clients’ relevant bank and software accounts. This gives you comprehensive visibility when carrying out financial management tasks.
- Password management tool setup: Set up a password management tool to store and manage client passwords safely and securely.
- Accounting software integration: Set up the client’s profile in the chosen accounting software (eg., QuickBooks, Xero) to centralize financial data. Request access to any existing accounting software the client uses for better integration and data flow.
- Integration of bank and credit card accounts: Integrate the client’s bank and credit card accounts into the accounting software so you can easily import transactions and reconcile financial data.
- Chart of accounts customization: Review and tailor the chart of accounts to align with the specific needs and operations of the client’s business. Make sure all accounts are categorized correctly so you can clearly see financial transactions and reporting.
#3 Client Communication and Billing Preferences
Open communication and clear payment terms are needed to build strong client relationships. Here’s what you need to do to set up effective communication channels and billing preferences during onboarding.
1. Communication Preferences
To guarantee timely and effective communication with new clients, you’ll first need to find out their preferred method of communication. Ask them if they would prefer to keep in touch via email, phone, or portal messaging.
It’s also a good idea to set up automated reminders and notifications for clients to inform them of important deadlines. This helps them stay on track with their financial tasks and obligations.
2. Billing and Payment Preferences
You’ll need to work with your clients to establish and agree upon clear billing terms and payment methods. Setting this in stone from the get-go will help you avoid complications down the line.
Whenever possible, tailor billing arrangements to fit the client’s needs and consider setting up recurring billing for smooth and consistent transactions.
A solid onboarding process is the secret to a thriving bookkeeping business. By getting a handle on your clients’ financial details right from the start and setting up systems that work like a charm, you’ll grow your practice and build client relationships that last.
Automate Your Way to Onboarding Success
Imagine a world where new client onboarding is smooth, efficient, and practically effortless. This dream can become a reality with the right automation tools and workflows.
Implementing a structured system can help you convert leads into clients more efficiently, improve client satisfaction, and free up valuable time.
Here’s a step-by-step guide:
1. Identify Ideal Clients
Use a client application to attract and qualify prospective clients. Be sure to focus your efforts on those who are a good fit for your services.
2. Schedule a Call
Simplify appointment booking and cut down on back-and-forth communication with online scheduling tools.
3. Create Professional Proposals
Automate proposal generation based on client needs and securely collect electronic signatures and payments.
4. Gather Essential Information
Use digital onboarding organizers to collect necessary client data and documents efficiently.
5. Execute Smoothly
Establish a straightforward onboarding process with critical milestones, including:
- Initial onboarding call: Carry out an interview process to learn all about the needs, goals, and challenges of the small business owner.
- Financial health assessment: Review the provided financial records to identify potential issues or areas for improvement.
- Customized plan: Create a tailored action plan outlining the first few months of service, including key milestones and deadlines.
Remember: The key to successful automation is identifying the repetitive tasks within your onboarding process and finding tools to handle them efficiently. By automating these steps, you’ll save time, simplify the process of acquiring clients, and streamline the overall operations of your business.
Closing Thoughts
A well-structured client onboarding process is key for building successful partnerships with new small business tax and bookkeeping clients.
Gathering essential information upfront and establishing clear agreements lays the groundwork for a smooth and productive working relationship.
If you offer tax preparation services, your onboarding checklist should include past tax returns, correspondence with tax authorities, and key business details relevant to tax filing.
Similarly, bookkeeping clients require additional items like financial records, system setups, and communication preferences.
Introducing Workflows for Tax Pros
If you’re a tax or accounting professional who wants to streamline your onboarding process and beyond, say hello to Workflows for Tax Pros: a powerful platform designed to optimize your practice.
By automating routine tasks, integrating with essential tools, and providing valuable insights, Workflows for Tax Pros can help you save time, reduce errors, and improve client onboarding.
Workflows for Tax Pros uses TaxDome, a comprehensive platform for managing client information, communication, and document storage. This integration guarantees all client data is organized, secure, and easily accessible, further enhancing the onboarding experience and overall service delivery.
We make transitioning from clunky manual operations to streamlined automation simple. With our proven process, it’s easy for you, your team, and your clients to move to TaxDome.
To work with us, simply:
- Get our proven TaxDome Template. Access ready-made signature templates, including onboarding templates, to streamline your automations and work smarter.
- Transform your practice with our W4TP program. Join our 12-month program, led by top experts, to learn how to build an end-to-end automated system and achieve business growth using TaxDome.
