What should be in a client onboarding checklist?

Signed engagement terms, identity checks and a risk assessment, the documents and logins you need, authorities with the tax office, software access, and a first review booked. The checklist template covers each one.

Do I need to identify every new client?

That depends on the services you provide and the anti-money-laundering rules in your country. Read the KYC guide and check your regulator’s rules for the services you offer. This is general information, not legal advice.

When should onboarding be finished?

Before any billable work starts. Collecting documents can overlap the first job, but the signed terms and identity checks should not.

Client onboarding process for accounting firms, step by step

Step 2: Identify the client and assess the risk

Done when: Identity is verified and the risk assessment is saved to the client file.

Your task work out whether the services you will provide require identity checks under anti-money laundering rules where you practise, run the check before the long discovery conversation, and save a risk rating with its reasons to the client file.

How to do it, and what to read

First work out whether the services you will provide trigger identity checks where you practise; in Australia that turns on AUSTRAC’s list of designated services. Run the identity check before the long discovery conversation, because the result can change what you ask or whether you act at all. Then record a risk rating and the reasons for it: what the business does, where its funds come from, and who owns and controls it. The rating decides how much evidence you collect and how often you review the file.

Learning check

What would you do? Pick one; every answer is explained.

Under anti-money laundering rules, your firm must verify a new client's identity before providing certain services. When in onboarding should you run that check?

After the first job, once you know the client is staying.
At the end of onboarding, with the rest of the paperwork.
Before the long conversation about the client's affairs and needs.

Australia's anti-money laundering laws now cover some services that accountants provide. You are not sure whether a new client's work needs identity checks. What do you do first?

Run full identity checks on every new client, just in case.
Assume none are needed, since your firm is small and low risk.
Check whether those services are on AUSTRAC's list of designated services.

A colleague onboarded a new client and saved a money laundering risk rating of “low” with no notes. Is the client file complete?

Yes. The rating is what matters, and notes can be added later if needed.
No. Add why: what the business does, where its money comes from, who controls it.
No. To be safe, every new client should simply be rated high risk.

Your decision for this step (saved with your progress, and in your summary)

Step 3: Collect what you need, once

Done when: Everything on the checklist is in, or chased with a date.

Your task build one request listing everything you need from the new client, such as documents, logins, prior-year returns, tax office authorities and software access, and send it once with a due date and one place to upload.

How to do it, and what to read

Build one request from the checklist: documents, logins, prior-year returns, authorities with the tax office and access to the client’s software. Send it once, with a due date and a single place to upload, instead of a trickle of emails. Mark each item as in, chased or not needed. Anything still missing at the due date gets one reminder with a new date, then a phone call. If you use AI to sort what comes in, the onboarding article sets out which steps suit it and which stay with a person.

Learning check

What would you do? Pick one; every answer is explained.

You are onboarding a new client and keep remembering more documents and logins you need from them. How do you ask for them?

Go through everything with them on one phone call instead.
Email each item as you think of it, so nothing is held up.
Send one list of everything, with a due date and one upload link.

You sent a new client one list of what you need, with a due date. The date has passed and two items are still missing. What next?

Send one reminder with a new date, then phone if that passes too.
Start the work anyway and fill the gaps later.
Send a reminder email every few days until they arrive.

You want to use an AI tool to sort and file the documents a new client uploads. How do you decide what the AI does?

Hand the whole intake to it, since sorting is routine.
Keep AI out of client onboarding entirely, to be safe.
Let it sort and label files, with a person checking for gaps.

Your decision for this step (saved with your progress, and in your summary)

Step 4: Tell the client how you use AI

Done when: The client has the AI notice and, where needed, has agreed to it.

Your task list every tool that will touch this client's data, including AI features inside software you already use, and tell the client in plain words what those tools do, where the data is held and that a qualified person reviews all work.

How to do it, and what to read

List the tools that will touch this client’s data, including AI features inside software you already use. Tell the client in plain words what those tools do, where the data is held, and that a qualified person reviews every piece of work. Put the AI clause in the engagement letter, and send existing clients a short explainer before their next renewal. If you record meetings, say so at the start of the call and cover it in the letter. The consent article sets out what the US, Australia, the UK and Canada each require.

Learning check

What would you do? Pick one; every answer is explained.

Nobody in your firm uses a chatbot, but your practice management software has AI features switched on, such as automatic summaries. Do these go on the list of tools you tell a new client about?

No. Only standalone AI tools need to be listed.
Yes. AI features in software you already use count too.
Only if the client asks about them.

Your firm records client meetings and uses AI to write up the notes. How do you handle this with a new client?

Mention it in the engagement letter only.
Leave it out, since the recording is only for your notes.
Say so at the start of each call, and cover it in the letter.

Your firm has started using AI tools on client work. An existing client's annual engagement renewal is still months away. When should they hear about it?

Only once they raise it with you.
Not at all, since the AI notice is only for new clients.
Send them a short explainer now, ahead of their next renewal.

Your decision for this step (saved with your progress, and in your summary)

Step 5: Book the first review

Done when: The review is booked and the client knows it is coming.

Your task book a review about 90 days into the new client relationship, compare the hours the work took with the fee before you meet, and set up the next review as a job with a due date in your practice management system.

How to do it, and what to read

Book a review about 90 days in, while the relationship is new. Before it, compare the hours the work actually took against the fee, and list anything you did that was not in the scope. In the meeting, ask what the client expected that they have not had yet. Leave with one of three answers: the scope and fee fit, the scope needs changing, or the fee does. Put the next review in your practice management system as a job with a due date, so it does not depend on memory.

Template Client onboarding checklist (section on the review)

Learning check

What would you do? Pick one; every answer is explained.

You have just taken on a new client. When should you hold your first review of how the work and fee are going?

Whenever the client raises a concern.
At the end of their first year.
About 90 days in, while the relationship is new.

You have a 90-day review booked with a new client. What do you prepare beforehand?

The hours the work took against the fee, and any out-of-scope work.
A satisfaction survey for the client to fill in first.
Nothing much; it is a friendly relationship catch-up.

Preparing for a new client's 90-day review, you find you have regularly done work that was not in the engagement letter. What should you leave the meeting with?