Securing new clients is exhilarating, but that excitement can swiftly turn to frustration if you mishandle the onboarding process.
Poor onboarding can make or break new relationships, with 89 per cent of clients of financial institutions experiencing friction during the process, and 13 per cent even switching to competitors as a result, according to Thomson Reuters.
Beyond damaging relationships, poor onboarding wastes staff time, increases costs, diverts attention from existing clients, and elevates stress levels.
“Admin headaches can mentally drain our staff, leading to resentment before work even begins,” says IPA member Stacey Price, financial coach, accountant and tax agent at Healthy Business Finances. “Plus, unhappy clients from the start are harder to turn into A-grade clients.”
A robust onboarding process establishes a solid foundation for strong client relationships, reduces administrative burdens, improves operational efficiency, and ensures compliance, all of which contribute to business growth and success.
Here are 10 key steps accountants should follow to effectively onboard new clients.
1. Establish a connection
Creating a positive first impression is crucial.
“This is often the client’s first experience with your firm, so the process must be seamless,” says IPA member Lawrence Petruzzelli of MDB Taxation & Business Advisors. “I recommend jumping on a call to guide clients through the process — it adds a personal touch and builds trust early.”
2. Keep communication and filing clear
Miscommunication is a common pitfall for many small businesses during onboarding.
“Industries often use specialised terminology. Take time at the beginning to align meanings,” says Therese Ravell, Director of Impact HR.
She recommends a shared folder with a document map to help clients find necessary information easily.
“This setup ensures everyone can quickly recall timelines, processes and expectations.”
Visual documents may sometimes be needed to enhance understanding, she adds.
3. Meet KYC and AML requirements
Accountants have an obligation to prevent financial crime. Know Your Client (KYC) and Anti-Money Laundering (AML) requirements focus on verifying identities and reducing financial crime risks respectively.
“Accountants must register with AML authorities and screen clients against relevant databases,” says Petruzzelli. “If you suspect laundering activity, reporting is mandatory. Digital tools can streamline the process, but firms must stay across their reporting obligations.”
Identity verification requires viewing client identity proofs. Price suggests using tools like Cas 360, Annature and Infotrack for secure, online verification, factoring their fees into your pricing.
For non-sole-trader or non-individual clients, confirm the individual’s authority to discuss the entity, she adds.
4. Get techy and protect data
Technology greatly reduces administrative time, enhances client experience and ensures compliance and data security.
Petruzzelli says secure portals are safer than email for document sharing, e-signatures simplify the signing process, and text reminders increase turnaround speed.
“Automation allowed us to cut three full-time admin roles to half a role with the right software,” he says.
He advises using platforms with enterprise-level security, avoiding entering sensitive data into AI tools or non-compliant CRMs, and keeping all client data within secure, approved environments.
“Onboarding is often the client’s first experience with your firm, so the process must be seamless.”
Lawrence Petruzzelli, Principal partner, MDB Taxation and Business Partners
Price insists on using programs with two-factor authentication and ensures clients and admin staff have separate access to avoid shared logins.
She recently switched to Tax Dome, which consolidates engagement letters, e-signatures, client communication and more into one program, streamlining processes further.
5. Draft a comprehensive engagement letter
An engagement letter is a crucial agreement detailing terms, scope, fees and responsibilities.
“They’re essential to give both parties peace of mind and confidence around the day-to-day requirements, and also resolution processes if issues arise,” says Ravell.
Key things to include are:
- Identity and location: Include who you are, with photos for personalisation.
- Scope of work: Define what’s included, excluded and the engagement period. Note additional services available for extra costs.
- Client responsibilities and expectations of the client: Documents needed, such as proof of identity and ATO portal access.
- Confidentiality and data protection: Detail your cybersecurity protocols and data storage policies to protect everyone involved.
- Intellectual property: Ensure mutual protection against misuse of documents and tools.
- Pricing structures and payment terms: Clearly state fees, invoicing, payment timelines and consequences of non-payment.
- Personal guarantee: Include professional conduct standards or a tax agent disclosure statement.
- Termination clauses: Outline processes for client departure and dispute resolution.
6. Tailor the process
Keep your onboarding consistent but recognise that larger businesses come with more complexities.
Price customises her communication.
“The key question is, ‘Do you run a business?’ A ‘Yes’ triggers a different set of questions than a ‘No’. This approach allows us to send one request to all clients, but they complete only what’s relevant to them.”
7. Check in regularly
New clients won’t always understand progress if it’s not visible.
“For clients to feel safe in your hands, schedule weekly calls or summary emails,” says Ravell. “This ensures clients know what’s happening, allows them to adjust priorities and builds trust.
“For long-term clients, you can shift to a fortnightly schedule.”
8. Know when to say ‘No’
Not all clients fit your business, and some may raise red flags that indicate potential trouble.
“While some just need guidance, resist onboarding those resisting compliance or legal requirements, especially around tax,” he says.
Petruzzelli advises caution with clients lacking accounting systems, showing inconsistent figures or struggling with prior accounts.
For Price, additional red flags include: clients behind on bookkeeping, payroll or taxes blaming past accountants; lack of effort in addressing ATO payments; reluctance to nominate you as their agent until you start work; or unwillingness to provide documents or sign engagement letters.
“If they really want to work with us, these things are just standard processes,” she says.
Ravell warns that delayed responses or non-compliant policies require further investigation.
“When potential clients push back, argue the reasons for non-compliance or say they will handle that part internally as a result of your feedback, it’s a significant red flag.”
9. Reassess your process
Ultimately, onboarding should be a quick, simple and efficient process for both parties.
“Clients should feel the love straight away, so it needs to be easy, timely, straightforward and accurate,” says Price.
However, onboarding isn’t ‘set and forget’, she adds.
“If they really want to work with us, these things are just standard processes.”
Stacey Price, financial coach, accountant and tax agent at Healthy Business Finances
“It should be checked every six months to ensure it still ticks all those boxes. Pretend you’re a client and send your onboarding system to yourself. How easy is it? Can it be done only on a computer or also on a phone? How long does the process take? Test, tweak, then test again.”
Petruzzelli advises collecting client feedback or reviews to gauge the process’s effectiveness.
“To elevate the experience for your clients, consider providing a dedicated client service officer or onboarding specialist — and for larger clients, a welcome pack with books, merch or a handwritten note.”
10. Add the personal touch
After a successful onboarding process, you cannot drop the ball, Petruzzelli adds.
“Set up regular check-ins — especially with high-value clients. Whether it’s a quick email, an advisory session or updates on new laws, staying proactive helps clients feel supported and keeps your firm top of mind.
“Unexpected gifts also go a long way in nurturing long-term relationships and showing appreciation.”
Price suggests using CRM or newsletter software to segment clients into groups to help you enhance the personal touch.
“This way, if you need to tell certain clients things quickly, you can do so with ease. Tailored communication goes a long way.”
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