When you take on a New accounting client checklist, it’s important to have a checklist in place to make sure you have all the necessary information and documents. This will not only help you provide the best service possible, but it will also ensure that you are complying with all relevant laws and regulations. In this article, we’ll go over a comprehensive checklist that you can use when onboarding new accounting clients.

1. Gather Basic Information

The first step of the checklist is to gather basic information from the client. This includes their name, address, phone number, email address, and tax ID number. Additionally, you should find out what type of entity they are (such as a sole proprietorship or corporation), when they were established, and who their key stakeholders are.

2. Assess their Accounting Needs

Next, you should assess the client’s accounting needs. This will help you determine what services they require and how you can best meet their needs. Ask questions such as:

    • What accounting software are you currently using?
    • What type of bookkeeping services do you require?
    • What is your budget for accounting services?

3. Review their Financial Statements

It’s important to review the client’s financial statements to get a clear picture of their current financial situation. This will also help you identify any potential issues that need to be addressed. You should review their income statement, balance sheet, and statement of cash flows.\

4. Determine their Tax Obligations

Determining the client’s tax obligations is a crucial aspect of the checklist. You should find out what taxes they are required to pay, when they are due, and how much they owe. Additionally, you should review their past tax returns to identify any areas where they may have made mistakes.

5. Review their Legal Documentation

Reviewing the client’s legal documentation will help you identify any potential legal issues that need to be addressed. This includes items such as organizational documents, contracts, and leases. You should also check to see if they have any pending legal issues that could impact their financial situation.

6. Assess their Internal Controls

Assessing the client’s internal controls is important to ensure that their accounting processes are efficient and effective. You should review their policies and procedures, as well as the controls they have in place to prevent fraud and errors. This will help you identify any areas where they may need to make improvements.

7. Draft an Accounting Engagement Letter

Once you have gathered all of the necessary information and completed your assessment, it’s time to draft an accounting engagement letter. This document outlines the scope of the services you will provide, your fees, and other important terms and conditions. Make sure that the client fully understands and agrees to the contents of the letter before proceeding.

By following this comprehensive New Accounting Client Checklist, you can ensure that you have all the necessary information and documents to provide the best accounting services possible to your new client. Remember that every client is unique, so you may need to tailor your checklist to meet their specific needs. With the right approach and attention to detail, you can build strong relationships with your clients and help them achieve their financial goals.