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R.5 Transition Checklist for Changing Your Bookkeeper or Tax Preparer

Authored by Winona Dorris and Poppy Davis

If you're planning to end services with your current bookkeeper or tax preparer, use this checklist to make sure you leave with everything you need for a smooth transition.

Be sure to get a copy of your data or ownership transferred before ending the relationship.

There are three categories of data and source documents to address:

A. Bookkeeping Data and Source Documents

For online programs:
1. Set up your own online account for the same bookkeeping program so you have an account that can receive the data.
2. Request ownership of the account be transferred to you.
3. Ask for a list of any logins or accounts they created on your behalf.
4. For QuickBooks Online (QBO), receipt images are saved in the account, so when the account is transferred to you, the images of the receipts will also be transferred. Check if the same is true for other programs. If the images are not transferred, you will need to be sure to get the physical copies of any receipts or other source documents you gave to your bookkeeper.
For desktop programs:
1. Ask the bookkeeper to convert your file to the online version and then transfer ownership (may incur extra charges). OR -
2. Request a backup file of your accounting data (may incur fees). Customer support can guide you through this process.
3. If your bookkeeper has retained your physical copies of receipts and other source documents, be sure these are all returned to you.
If you do NOT own your bookkeeping software, your bookkeeper uses different software, or does not agree to give you the file with your bookkeeping ask for the following documents:

A brief summary of how they managed your books or taxes

Chart of Accounts and Class List

Trial Balance as of December 31 for any year for which they have also prepared income tax returns for you and as of the end of the last month for which they completed services

Balance Sheet as of the end of the last month for which they completed services

Profit & Loss (P&L) Statement for the current year through the end of the last month for which they completed services

General Ledger (shows all transactions) as of December 31 for any year for which they have also prepared income tax returns for you and as of the end of the last month for which they completed services for the current year through the end of the last month for which they completed services

Any bank or credit card reconciliations as of December 31 for any year for which they have also prepared income tax returns for you and as of the end of the last month for which they completed services

Any original invoices and receipts in their possession

Any adjusting journal entries (usually done at year-end)

Payroll reports (if they managed payroll)

B. Income Tax Documents - for a tax preparer or a bookkeeper who also prepared income taxes

Full copies of your tax returns (PDFs – not just transcripts) including any supplemental schedules not required to be filed with the IRS. In particular be sure to get a full copy of any depreciation detail showing assets.

Copies of any extensions of time for federal or state income tax returns.

Copies of any correspondence with the IRS or state tax authorities they handled for you

Copies of vouchers for estimated tax payments made

C. Payroll Tax Information - for a bookkeeper who did payroll, or for a payroll service

Copies of all payroll tax filings (Forms 940, 941, DE9, etc.)

W-2s for employees and 1099s for contractors and W-9s

Any quarterly or year-end payroll summaries

Final To-Dos

Ask for a final invoice and confirm your last day of service

Request a list of any unfinished tasks or open items

Confirm if any tax extensions or filings are still pending

Change any passwords for any accounts to which the bookkeeper had access

Tip: Save all files digitally in a secure place you can access easily, and share with your new provider to help them get up-to-speed faster.