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Client Onboarding Workflow

An overview of the end-to-end process to onboard a new client with The Accounting Academy

Client Onboarding Steps At a Glance

At a high level, the following steps should be followed when onboarding a new client: 

  1. Issue a quote (formal or informal, e.g. via Xero or via email)
  2. Issue a client details form / checklist
  3. Issue a client engagement letter
  4. Verify client ID
  5. Add the client to XPM
  6. Add the client to TAA's client list in the ATO Portal

👉 View the relevant drop-in session that covers the topic of workflows here 

Step 1 – Issue a Quote

The onboarding process begins with issuing a quote that sets clear expectations around the scope and cost of services. This can be done:

  •  Formally through Xero (which allows you to create and send professional quotes directly to a client's email),

  •  or informally via a short email outlining the proposed fee arrangement.

Step 2 – Issue a Client Details Form / Checklist

Before any substantive work can begin, you will need to collect the information necessary to set the client up correctly across your systems and meet your regulatory obligations. A client details form typically captures personal or entity information (full legal name, date of birth, ABN, address), details of any associates or related entities, and the client's prior tax history or current lodgement status.

This step is also an important opportunity to uncover any tax affairs that were not disclosed at the quoting stage and that may affect the original scope of work. 

Here is a template that can be used to capture client details.  Although please note that collecting client details is most securely managed via encrypted form platforms. 

Step 3 – Issue a Client Engagement Letter

See further guidance on issuing an engagement letter here. Please note that a Tax Agent must sign this letter, along with the client. 

 

Step 4 – Verify Client ID

You must verify a client's identity before providing services and on an ongoing basis. Where an individual is representing a client, you must also take steps to ascertain and verify that individual representative's identity and their authority to engage you on behalf of the client.

What ID is necessary?

  • For individuals, ID verification typically means sighting government-issued photo ID (such as a passport or driver's licence).

  • For companies and trusts, an ASIC search for a company and sighting a copy of the trust deed for a trust would both be appropriate, alongside verifying the identity of any individual authorised to instruct you on behalf of the entity.

Records of the verification must be retained, including confirmation that ID documents were clear, legible, and raised no concerns.

Step 5 – Add the Client to XPM

Once the engagement is confirmed and ID has been verified, the client should be set up in Xero Practice Manager (XPM) - getting this right from the outset matters: XPM feeds directly into Xero Tax and the ATO for lodgement purposes, and inaccurate records can cause issues downstream when preparing and filing returns.

Click here for more detail on how to correctly set up a client in XPM. 

Step 6 – Add the Client to TAA's Client List in the ATO Portal

The final step is linking the client to the TAA practice in the ATO's Online Services for Agents portal. See here for more detail on this process. 

NEXT UP > Tax Return Preparation Workflow