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Professional clearance letter template for accountants
When a client moves to you from another firm, you write to their previous accountant before you accept the work: is there any professional reason you should not act? The letter is short, the reply is usually shorter, and the handover list that goes with it saves weeks of chasing. These templates cover both sides, for Australia, New Zealand, the UK and Ireland, where professional bodies expect it.
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How to use it
How to use this template
1
Get the client’s authority first
The previous accountant cannot discuss the client with you without it. Use the authority in section 1, or a signed clause in your engagement letter. The onboard a new client playbook covers where clearance fits in onboarding.
2
Send the request before you start
Ask whether there is any professional reason not to accept the work, and ask for the handover information at the same time.
3
Reply promptly if you are the previous accountant
Answer honestly, with the client’s permission. Unpaid fees are generally not a professional reason, and never say whether you have made a suspicious activity or matter report.
4
Record what you decided
Keep the request, the reply and your decision on the client file. Then carry on with the client onboarding checklist.
The template
The template in full
[Firm name] professional clearance: [client]
Replace everything in [square brackets].
Where the rule comes from
Where
What applies
Australia
APES 110 section 320 (professional appointments) for members of CA ANZ, CPA Australia and the IPA; the TPB Code of Professional Conduct on confidentiality.
New Zealand
The Code of Ethics for members of CA ANZ, which follows the same international code, including section 320.
United Kingdom and Ireland
Section 320 of the ICAEW, ACCA, ICAS and Chartered Accountants Ireland codes, plus each body’s guidance on changes in professional appointment.
United States
No formal clearance letter for tax and bookkeeping work; ask the client for permission to contact the predecessor and for their records. Audit work follows the auditing standards on predecessor communication.
1. Client authority
I/We, [client name and entities], authorise [previous firm] to discuss my/our affairs with [new firm], to answer its professional enquiry, and to provide it with the information and records listed in its letter.
Signed: [name, role, date]
2. Request from the new accountant
Dear [previous accountant],
[Client] has asked us to act as their [accountant / tax agent / bookkeeper] for [services] from [date]. Their signed authority is attached.
Before we accept the engagement, please let us know whether there is any professional reason why we should not do so.
So that we can carry on the work without gaps, please also send the information listed below by [date], or tell us if any of it is not available.
Thank you. [Name, role, firm, phone, email]
3. Reply from the previous accountant: no reason not to act
Dear [new accountant],
Thank you for your letter of [date] about [client]. We are not aware of any professional reason why you should not accept the engagement.
The information you asked for is [attached / available at the link below / being prepared and will follow by date]. [Anything outstanding, stated as fact, e.g. the lodgment or filing status of the latest return.]
[Name, role, firm]
4. Reply from the previous accountant: matters you should know
Use only with the client’s permission, and keep to facts. Talk to whoever handles AML reporting at your firm before you write if there is any suspicion of money laundering: never say whether a report has been made.
Dear [new accountant],
Thank you for your letter of [date] about [client]. Before you accept the engagement, there are matters you may wish to discuss with us: [factual description, e.g. a disagreement about the treatment of an item in the accounts, or information we asked for and did not receive]. Please call me on [phone].
[If fees are unpaid, you may say so as a fact. It is not, on its own, a professional reason for the new accountant not to act.]
[Name, role, firm]
5. Handover information to ask for
Latest financial statements and tax returns, with the working papers you are entitled to under your engagement terms.
Lodgment or filing status: what is done, what is due and any extensions or payment arrangements.
Open correspondence with [ATO / IRD / HMRC / Revenue / IRS]: reviews, audits, objections.
Fixed asset and depreciation schedules, loan and shareholder or director loan balances, and carried-forward losses.
Access to the accounting software file, or its transfer to the client’s or your subscription.
Payroll setup and year-to-date figures, if payroll changes hands mid-year.
Agent or representative authorities removed on [date], so you can add yours.
This template is a starting point, not legal advice. Your obligations depend on where you practise, your professional body and your clients; take advice on anything you are unsure of.
Common questions
Frequently asked questions
What is a professional clearance letter?
A letter from an accountant who has been asked to take on a client to the client’s previous accountant, asking whether there is any professional reason not to accept the work. It is expected by professional bodies in Australia, New Zealand, the UK and Ireland under section 320 of their codes of ethics.
Do I need the client’s permission?
Yes. The previous accountant owes the client confidentiality and cannot discuss their affairs with you without permission. Get it in writing before you send the request.
Can the previous accountant refuse clearance because of unpaid fees?
Generally not. Unpaid fees are not a professional reason to stop a new accountant acting, though the previous accountant may mention them as a fact. Rules on holding records for unpaid fees vary by country and body. How to part ways with a client covers the outgoing side.
What if the previous accountant does not reply?
Follow up once in writing and by phone. If there is still no reply after a reasonable time, you can decide whether to act on what you know, and record the attempts and your decision on the file.
Is professional clearance needed in the US?
Not as a formal letter for tax and bookkeeping work. It is still good practice to ask the client for permission to contact the previous preparer and for their prior returns and records. Audit work follows the auditing standards on communication with the predecessor.