How to develop a client onboarding workflow

A professional onboarding workflow is the engine room of your accountancy practice. Its primary purpose is to move a new client from a "handshake" to "ready to work" in a logical, automated sequence that ensures you meet all UK legal requirements while providing a smooth experience for the client. The most critical rule is to never start substantive work until you have a signed Letter of Engagement and have cleared your Anti-Money Laundering (AML) checks.

The Standard Onboarding Sequence

To keep things efficient, your workflow should follow a consistent path. Mapping this out helps you identify which parts can be automated and ensures no regulatory steps are missed.

1. Identity & AML Checks: Before anything else, you must verify the client’s identity. This involves collecting proof of ID (like a passport) and proof of address. You must then run these through your AML software to check against sanctions lists and "Politically Exposed Person" (PEP) registers.
2. Professional Clearance: If the client has a previous accountant, you need to send a professional clearance letter. This is a courtesy and a professional requirement to check if there are any reasons you shouldn't take them on (such as unpaid fees or unethical behaviour).
3. Letter of Engagement (LoE): Once you are happy to proceed, send the LoE. This is your legal contract. It must clearly state what services you are providing, what the fees are, and the responsibilities of both parties. Digital signature tools are highly recommended here to speed up the process.
4. HMRC Authorisation: You need to be formally linked to the client on HMRC’s systems to talk to them on the client’s behalf. This involves requesting authorisation through your HMRC Agent Services Account for specific taxes like VAT, Self Assessment, or Corporation Tax.
5. Software & System Setup: Once the paperwork is signed, move the client into your "working" environment. This includes setting them up in your practice management software, creating their profile in cloud accounting software (like Xero or QuickBooks), and setting up their folder in your secure document storage.

Why the order matters

In the UK, the Money Laundering Regulations are strict. Performing the AML checks and getting the Engagement Letter signed before you touch any client money or records protects you legally. It also sets a professional boundary; it shows the client that you run a structured, compliant firm.

Top Tips for a Slick Process

• Use a Checklist: Even if you don’t have practice management software yet, use a simple digital checklist for every new client. It’s easy to forget a small step like "requesting VAT authorisation" when you’re busy.
• Automate the "Welcome": Once the contract is signed, have an automated "Welcome Email" ready to go. This should include a list of what you need from them next (like bank feeds or old records) and introduce them to how you work.
• Set Deadlines: Give clients a timeframe to return documents. A delay in onboarding often leads to a delay in their first tax filing, which can cause friction later.

Pro Tip: Consider the "First 30 Days." Onboarding isn't just about paperwork; it's about education. Use the first month to show the client how to use their software or how to send you receipts. A well-trained client is much easier to manage in the long run.