Key takeaways
- Agree the scope, the fee and the records the client will provide before the first close.
- Ask for access and opening balances in the same request, not after the first month.
- Agree the first close date before the onboarding list goes out.
- Review the first close with the client and fix the process while it is still new.
Agree the scope and the engagement
Start with the services: monthly bookkeeping, payroll support, sales tax, 1099s, cleanup or a one-time project. The scope decides which records the client will provide and which deadlines apply.
The engagement letter should name the client's responsibilities, the records the firm needs and the consequences of a late record. A client who understands that the close depends on the bank statement is more likely to send it.
Agree the fee and the billing cycle before the work starts. An onboarding that begins with an unbilled scope conversation is an onboarding that will have a billing conversation later.
Send one records request
The onboarding checklist should ask for the entity details, the EIN letter, the formation documents, the accounting software access, the bank and card list, the current-year statements and the prior-year return.
Ask for the prior bookkeeper's trial balance and close package at the same time. The prior balance is the starting point for the first close, and waiting for it after the first month creates a gap.
Set one due date for the onboarding list. A list that arrives in pieces over three weeks turns the first close into a chase.
Get access and agree the opening balances
Ask for an accountant user invitation to the accounting file, not the owner's password. The client should remain the file owner and the firm should have the access it needs.
Reconcile the opening bank, card and loan balances to the statements before the first transaction is booked. If the prior trial balance does not agree, document the difference and decide whether a cleanup is needed.
Do not start the first close from an opening balance the firm cannot support. A clean start is worth a one-week delay.
Run the first close
Run the first close like any other: the same checklist, the same due date and the same review. The client should see the process they will see every month, not a special onboarding project.
Review the first close with the client, including the profit and loss, the balance sheet and the open questions. The review is the moment to correct the chart of accounts, the class tracking and the report format.
Write down what changed after the first close, so the second close does not repeat the same questions.
Hand off from the prior bookkeeper
Ask the client for permission to contact the prior bookkeeper, and send a short handoff request: the final trial balance, the open items, the adjusting entries and the location of the source documents.
If the prior bookkeeper is unresponsive, use the client's copies and the prior return. Document what is missing and what the firm used instead.
The handoff is not a review of the prior bookkeeper's work. It is a transfer of the records the client already owns.
Check in after 30 days
After the first close, ask the client what was easy and what was hard. The answer usually identifies one item in the checklist that needs a clearer note or a different due date.
Check that the client can see the value: the report, the reconciled accounts and the questions that were answered. A client who does not see the value in the first month is a client who may leave in the third.
Fix one thing before the second close. A small improvement in the request or the report is more useful than a new tool.