Key takeaways
- Confirm the last date of service in writing.
- Deliver the client's records before removing access.
- List every deadline that falls after the last date.
- Keep the handoff record longer than the underlying documents.
Confirm the decision
Ask the client to confirm the decision and the reason in writing, even if the conversation was by phone. The email is the record of the last date of service and the handoff.
If the client is leaving for another firm, ask for the new firm's contact information. A direct handoff is easier than a handoff through the client.
Agree the last date
Set the last date of service and the last period the firm will close. A client who leaves in the middle of a month needs a clear cut-off for the bank statements and the payroll records.
Confirm the final invoice and the payment status separately. The records handoff should not depend on the invoice conversation.
Deliver the records
Return the records the client provided, the final financial statements and trial balance, the returns the firm prepared and the schedules that explain the balances.
Send an index with the handoff. A folder of PDFs with no index is a folder the next bookkeeper has to reconstruct.
Remove access
Remove the firm's access to the accounting file, the bank and card accounts, the payroll provider and the client portal after the records are delivered.
Keep a record of the date each access was removed and who removed it. The record is the support if a client later asks who still had access.
List the open deadlines
List the payroll, sales tax, estimated tax, 1099 and return deadlines that fall after the last date of service, and who is responsible for each.
A client who assumes the firm will file one more return after the handoff is a client who may miss a deadline. Say it in writing.
Close the billing
Send the final invoice with the services and the period. If the engagement letter includes a notice period or a final fee, apply it consistently.
Do not use the records as leverage in a fee dispute. Check the engagement letter and the state law before withholding anything.
Learn from the departure
Ask why the client left, even if the answer is uncomfortable. The reason may be a service gap, a price issue or a communication problem the firm can fix.
Track the departures by reason and by service. A pattern is a management problem, not a one-off.