Client onboarding software for accountants brings the proposal, engagement letter, e-signature, AML identity checks and document collection into one flow, so a new client can be taken on without paper forms. When choosing one, check its AML features against the Money Laundering Regulations, where it stores data, and how well it connects to your practice management system.
No client onboarding software finishes the job on its own. Someone still has to chase the client who stops halfway, review failed ID checks, request professional clearance, set up HMRC and Companies House authorisations and make the risk decision. This guide lists the features worth paying for and the human tasks to plan for, so you can run a fair trial.
Key points
- Most products cover proposals, engagement letters, e-signature, electronic ID verification, risk assessment and a client portal.
- Electronic ID verification can count as a reliable, independent source if the process is secure from fraud and misuse (MLR 2017, regulation 28(19)).
- The software provider is usually your data processor, so you need a compliant contract and to know where data is held.
- CDD records must be kept for five years after the relationship ends, so check export options before you sign up.
- Your firm stays responsible for CDD and risk decisions whatever tool or supplier you use.
What client onboarding software automates
A typical client onboarding software journey runs: enquiry form, proposal with pricing, acceptance, engagement letter, e-signature, ID and AML checks, document requests, then a new client record in your practice system. Each step that used to be an email becomes a link the client completes on their phone.
| Onboarding step | Usually automated | Usually still manual |
|---|---|---|
| Proposal and fees | Templates, pricing calculator, acceptance | Scoping unusual work, agreeing fees |
| Engagement letter | Merge of client details and services; e-signature | Checking the scope matches the work agreed |
| Identity verification | Document and selfie checks, database checks | Reviewing referrals and failed checks |
| Company and ownership | Companies House data pull | Verifying beneficial owners beyond the register |
| Risk assessment | Questionnaire and scoring | Final risk band and acceptance decision |
| Documents | Upload requests and reminders | Chasing non-responders; checking what arrives |
| Previous accountant | Template letter | Sending, following up and reading the reply |
| HMRC and Companies House access | Reminders, at best | Authorisation requests and follow-up |
Client onboarding software features checklist
Score each product you shortlist against these nine features. Weight them by what your practice does most.
- Proposals and pricing: service catalogue, price rules, client acceptance online.
- Engagement letters: your own wording, service schedules, version control.
- E-signature: built in, with an audit trail of who signed and when.
- Identity verification: document, biometric and database checks, with clear pass, refer and fail results.
- AML risk assessment: configurable questions that reflect your firm-wide risk assessment, with a record of the reviewer’s decision.
- Companies House integration: officers and PSCs pulled in, with prompts to verify beneficial owners independently.
- Client portal and document requests: secure upload, reminders, status tracking.
- Ongoing monitoring: review dates, re-screening against sanctions and PEP lists, alerts.
- Integration and export: sync to your practice management system, and full export of records and audit trails if you leave.
Also ask about data location, user permissions, multi-office or multi-brand support, and pricing per user, per client or per check. A practice running 200 checks a year can find per-check pricing quite different from the headline monthly fee.
AML and ID verification integrations
The Money Laundering Regulations allow electronic verification. Under regulation 28(19), information from an electronic identification process can be treated as coming from a reliable and independent source if the process is secure from fraud and misuse and gives the assurance needed to manage the risk. Ask each vendor how their checks meet that test and what evidence the report shows.
Three further points matter when judging the AML side of client onboarding software:
- Companies House data is a starting point. Regulation 28(9) says firms do not meet the beneficial ownership duty by relying solely on information delivered to the registrar. The software should prompt for independent verification.
- Records must be retrievable for years. Regulation 40 requires CDD records to be kept for five years from the end of the business relationship, then personal data deleted unless an exception applies (regulation 40). Check you can export everything if you change provider.
- Liability does not move to the vendor. Regulation 39(7) allows CDD to be carried out by an outsourcing service provider only on terms that leave your firm liable (regulation 39).
Regulation 41(6) also requires firms to tell new clients, before the relationship starts, that personal data received will be processed only for preventing money laundering and terrorist financing or as otherwise permitted. Check the software’s client-facing screens or your engagement letter include that statement. For the full CDD list, see our AML requirements checklist.
Data protection checks
The software provider will normally act as your processor. UK GDPR requires a written contract covering the points in Article 28 (ICO: controller and processor contracts). Ask where data is hosted and which sub-processors are used; if data leaves the UK, a transfer mechanism is needed (ICO: international transfers).
E-signature and engagement letters
Electronic signatures are admissible in evidence in UK legal proceedings on questions of authenticity and integrity (Electronic Communications Act 2000, section 7). Most client onboarding software includes signing; what varies is the audit trail. Look for a certificate showing the signer’s email, time stamps and the document version signed.
The bigger risk is the letter itself. A tool that sends a generic letter quickly is only useful if the schedules match the work. Load your own wording, keep a schedule per service, and set the software to merge in only the services the client has accepted. Our engagement letter guide sets out what each section should cover.
Tasks that still need a person
Every practice that buys client onboarding software finds the same gaps. Plan who will cover them before go-live.
| Task | Why software does not finish it | Who usually does it |
|---|---|---|
| Chasing clients who stop halfway | Automated reminders are easy to ignore | Admin team, by phone and email |
| Reviewing referred or failed ID checks | Needs judgement and sometimes extra documents | Admin gathers; MLRO decides |
| Final risk band and acceptance | A legal responsibility of the firm | Partner or MLRO |
| Professional clearance | Depends on the previous accountant replying | Admin team |
| HMRC agent authorisation | Each service has its own request and client step | Admin team |
| Companies House authorisation and ID verification | Separate regime, often through the practice’s ACSP registration | Admin team with practice sign-off |
| Setting up the client in the practice system and software | Integrations rarely cover everything | Admin team |
Our client onboarding checklist walks through each of these steps, and our template for the professional clearance letter covers the request to the previous adviser. For identity verification at Companies House, see the identity verification checklist.
Moving existing clients onto the system
New clients are only half the picture. Decide early whether existing clients will be moved into the client onboarding software, and when. Many practices bring them in at their next scheduled AML review, so the ID refresh, updated engagement letter and portal invitation happen in one contact. Budget admin time for this: importing records, checking that client details match the practice system and chasing clients who have never used a portal. A staged migration over a year is easier to staff than a single push.
Running a client onboarding software trial
Most client onboarding software vendors offer a trial or a demo account. Use it to onboard real clients, with their agreement, rather than test records.
- Pick five new clients of different types: a sole trader, a landlord, a limited company with one director, a company with a corporate shareholder and a trust if you act for them.
- Load your own engagement letter and risk questions before the first client.
- Time each onboarding from first contact to “ready to start work”, and count the manual steps.
- Note every point where a client got stuck or phoned you.
- Export a full client file at the end and check it contains the ID evidence, risk assessment, signed letter and audit trail.
- Compare cost per onboarding, including per-check fees.
FAQs
What should firms evaluate when selecting client onboarding software?
Check that ID verification meets the Money Laundering Regulations, that risk assessments can reflect your own firm-wide assessment, that engagement letters use your wording, and that records can be exported in full. Also confirm where data is stored, the processor contract, integrations with your practice system and the true cost per client including per-check fees.
Is electronic ID verification acceptable for AML?
Yes, if the process is secure from fraud and misuse and gives enough assurance that the person is who they claim to be. Regulation 28(19) of the Money Laundering Regulations allows information obtained this way to count as coming from a reliable and independent source. Your firm still decides whether the result is sufficient for the client’s risk level.
Do accountants need a client portal?
There is no legal requirement to have one. A secure portal is safer than email for passports, bank statements and tax documents, and it gives you a record of what was requested and received. Many client onboarding software products include one; check it supports reminders and that clients can use it easily on a phone.
Can client onboarding software replace an admin team?
It reduces the manual steps but does not remove them. Someone still chases clients who stop partway, reviews referred ID checks, requests professional clearance and sets up HMRC and Companies House access. Many practices pair the software with an admin team, in-house or outsourced, to run those steps.
Are e-signatures valid on engagement letters?
Electronic signatures are admissible in evidence in UK legal proceedings under section 7 of the Electronic Communications Act 2000. For engagement letters, choose a tool that records the signer’s email, time stamps and the exact version signed, so you can show what the client agreed to.
Pair your software with people who run it
Our team works inside your onboarding tool and practice system to chase clients, gather ID, request clearance and set up authorisations, with acceptance decisions left to you. See our client onboarding service or book a consultation.
