New clients play a vital role in ongoing success for accountants. But the work doesn’t stop once you’ve made a marketing push and got a prospective client to reach out. Before you can begin providing your services, you’ll both need to go through a lengthy onboarding process which, if it’s smooth, makes a great first impression and sets the stage for a long-term partnership.
Whether you’re working as part of a larger firm or handling clients independently, this article will lay out exactly how to welcome them to your practice. We’ll cover everything from the initial consultation to gathering the necessary information to keep clients satisfied and ensure compliance with accounting regulations.
Onboarding Overview
Seventy-four percent of companies have a dedicated customer onboarding team, but accounting firms often rely on accountants themselves to carry out this process. The main benefit of this is you’ll become familiar with your client’s financial situation, and can start honing your partnership right away.
While each accountant has different preferences as to the onboarding process, in general there are a few boxes that need to be ticked. These are:
- Client Consultation
- Defining Services and Setting Expectations
- Gathering Essential Documentation
- Introduction to Key Systems
- Initial Financial Review
- Compliance Review and Confirmation
These core steps will provide both you and your client with everything you need for your ongoing partnership. So, without further ado, let’s take a closer look at your duties at each stage.
Step 1: Client Consultation
Experian found that 70% of those who apply for accounting services online are seeking advice, so the initial client consultation is a great opportunity to discuss their unique financial needs, challenges and goals, as well as to show them the type of advice you’ll provide in the future. While it’s beneficial to hold this meeting in person, it can take place over a video call or the phone if necessary.
Since this meeting will form the foundation of the accountant-client relationship, you’ll need to gather as much information as possible. Inquire about:
Their Background - Depending on the type of service you offer, take the time to get to know your client’s business or personal financial situation. For businesses, delve into their industry, operational model, and any recent changes they’ve experienced. For individuals, explore income sources, financial goals, and any significant financial events or plans.
Expectations and Objectives - To ascertain exactly which services your client will require, and create measurable objectives for your partnership, you’ll need an understanding of their goals. For example, are they seeking growth opportunities, tax planning, estate planning, financial management, or compliance support?
Past Financial History - If possible, discuss any previous financial records, reports, or issues they’ve encountered. On the one hand, challenges your client has faced in the past will help you identify areas where you can add value. On the other, you’ll be able to anticipate further problems that may arise.
Communication Preferences - Every client has unique communication preferences, so find out more about how you should contact them, and set mutual expectations for your response times and availability. You may also like to provide your contact details at this stage just in case your client remembers some important information in the meantime.
Make it clear that you’ll need some time to review everything that’s been discussed and finalize a personalized onboarding plan, but that you’ll be back in touch with your client soon.
Step 2: Defining Services and Setting Expectations
Once you have a solid understanding of your client’s needs, it’s time to define the services you’ll provide and establish expectations for the partnership. Eighty-two percent of accountants who responded to a survey by Sage stated that clients expect more services from their financial advisors than they did five years ago, so prevent misunderstandings and disaffection by being as transparent as possible about what you can and cannot do.
Outline Service Scope - Begin by detailing the specific services you think are right for the client, and any limitations in scope you might need to address separately. As you are likely well aware, basic services like tax filing usually run on a tight schedule. Provide the client with a prospective timeline so they know exactly what documents they’ll need to give you and when, and can make you aware of potential delays.
Clarify Fees and Payment Terms - Discuss your pricing structure, whether it’s a retainer, hourly rate, or project-based fee, and any monthly or quarterly payment terms. As this can be a sensitive topic, especially if your client is up against a challenging financial situation, you may be tempted to get through this section as quickly as possible. However, transparency here not only builds trust but also helps avoid genuinely uncomfortable discussions down the road.
Explain Reporting and Updates - Revisit the communication preferences you discussed in the first step, and explain how and when the client will receive updates, reports, or feedback from you. Remember, while the client’s needs are important, so is your time. Don’t hesitate to set boundaries as to your availability for meetings.
Step 3: Gathering Essential Documentation
While gathering documentation will be an ongoing task throughout your partnership, you can make it much easier by collecting and making copies of essential documents now. In doing so, you can also make the client aware of how your practice handles their financial data.
Request Core Financial Documents - Your firm likely already has a checklist of standard documents that every client must provide, but if not, any recent financial statements, tax returns, payroll records, bank statements, receipts, and any existing contracts or loan documents are a good starting point. You may need to explain why these documents are needed and how you’ll use them moving forward.
Verify Document Completeness and Accuracy - Missing or inaccurate documents can lead to significant delays or issues with compliance down the line, so be sure to review all provided documents. An in-person document swap can expedite this process, as you’ll be able to inquire about any issues, provide advice, and seek solutions together.
Input Client Data into a CRM or Accounting Software - Once the documentation is gathered, save any copies to your chosen CRM or accounting software. You can also take this opportunity to explain the software to your client, quelling any concerns about document security and data retention.
Take a look at our guide to handling client sensitive information safely and efficiently to ensure you remain compliant and protect your client’s data.
Step 4: Introduction to Key Systems
Like many modern accountants, you may provide your client with a secure portal to access reports, timelines, and feedback. A walkthrough of these systems and processes will ensure a smooth working relationship, and significantly improve client experience if they have never been offered such a service before.
Present the Systems You Use - Begin by explaining the main systems you’ll use and their key feature, and demonstrate what you’ll require from the client. For example, if you use a secure file-sharing software, have them upload an example document to ensure they’ve got the hang of it.
Training and Support - Sixteen percent of American adults are digitally illiterate so, on top of your training session, it may be beneficial to provide a written guide or, if available, the contact details for your IT services. You may need to answer quite a few questions as they get to grips with the software, so allocate the necessary time and resources now to avoid confusion later.
Establish Security Practices - This is also the perfect time to make clients aware of any data security requirements they’ll need to abide by. If your firm has password policies, for example, educating your clients at this stage will reduce the risk of breaches.
Accounting software empowers clients to play an active role in their financial management. But, as mentioned, it doesn’t work for everyone. If your practice allows for it and you have the time to do so, you may need to take a more traditional approach to document sharing and communication with your client.
Step 5: Initial Financial Review
Conducting an initial financial review allows you to assess a client’s current financial health and identify potential areas for improvement or immediate action.
However, a financial review can be a hands-on and time-consuming process, so many practices only provide this service on request or wait until the partnership is finalized before committing to it. Conducting a financial review later in the onboarding process is also beneficial because, as Unbiased states, “Prospective clients want to feel confident that you have their best interests at heart. They need to trust both you as an individual, and the advice that you deliver.”
Either way, this first look at your client’s financial situation will provide a baseline for progress, enabling you to tailor your services to your client’s specific financial situation from day one.
Identify Opportunities and Challenges - Take a look back over those documents you gathered in the third step and analyze revenue, expenses, assets, liabilities, and any existing trends of red flags. Whether your client’s goals are debt restructuring, tax deductions, or cash flow adjustments, this review will give you an idea of the areas where you can assist. Also, identify any urgent issues that require attention, such as compliance risks or discrepancies in financial records.
Present Findings - Provide your client with a report of your initial findings, actionable insights, and examples of how you might address challenges or maximize opportunities. Then, discuss and establish realistic financial goals that work with your client’s broader financial situation. This is also a great opportunity to further demonstrate how you will present findings moving forward.
Document the Baseline - Take some notes of key financial metrics, challenges, and goals for your own records as a baseline for ongoing monitoring. With these insights, you’ll be able to track progress and demonstrate improvements you’ve helped your client make over time.
Step 6: Compliance Review and Confirmation
Finally, you’ll need to ensure that the onboarding process so far is in line with current industry regulations and standards. Once you’re sure you’re in the clear, you can provide your client with any necessary contracts they need to sign.
Assess Regulatory Compliance - By this point, you may have already identified areas of non-compliance in the client’s financial practices and documentation. If not, take one last glance over their documentation and the findings from your initial review just to be sure. Highlight and inquire about areas of concern, and advise the client on the adjustments they’ll need to make.
Establish a Compliance Monitoring Plan - Work with the client to develop a plan for ongoing compliance monitoring. This might involve setting up periodic reviews, reminders for filing deadlines, or checklists for maintaining compliance throughout the year. Again, your firm may already have policies in place for this step, so be sure to check first.
Final Confirmation - Take some time to confirm that both you and the client fully understand the services you’ll provide going forward, and any requirements you’ll both need to adhere to. Then, if you haven’t already done so, summarize everything your client agreed to in a formal service agreement or letter of engagement. This document will also provide a mutual reference point, so advise them to keep a copy on hand.
It’s time for a celebration because the onboarding process is complete! You probably want to get right into regular service, but be aware your client may still need guidance during this transition. Maintain open lines of communication by establishing a regular meeting schedule, and encourage your client to provide feedback if they’re struggling.
In Conclusion…
Getting the onboarding process right can be tricky. Your partnership with your client is not yet set in stone, so to a certain extent you still need to prove you’re the right choice. But, with planning and organization, transparent communication, and a willingness to explain even the smallest of details, the onboarding process allows you to build a strong working relationship with your client from the ground up. Good luck!
Sources and Resources
https://www.accountantsgrowthclub.co.uk/onboarding-new-clients
https://karbonhq.com/resources/definitive-guide-to-client-onboarding-for-accounting-firms/
https://www.skillcast.com/blog/accountancy-compliance-risks
https://www.theaccessgroup.com/en-au/blog/act-accounting-client-oboarding-checklist/
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