Purpose

This policy establishes the best practices and procedures to follow when a client transitions to a new accounting firm (successor firm). The guidelines outlined ensure compliance, consistency, and the protection of client information.

Best Practices

When a client requests a transfer of records to a successor firm, the following best practices must be followed:

• Format of Provided Documents:
  • Workpapers should be provided in PDF format.
  • Copies of tax returns should also be provided in PDF format.
  • Workpapers may include, but are not limited to:
    • Fixed asset schedules
    • Book-tax reconciliations
    • IAS/CAS reports
    • Basis schedules
• Restrictions on CCH Axcess Backups:
  • Firm Policy: KSM does not send backups of CCH Axcess files.
  • In rare circumstances where a backup is necessary, approval must be obtained from Claire Sheets or Madison Will before submitting a helpdesk ticket for the backup request.
  • Providing backups of fixed assets is generally permitted and can be provided upon request.
• Client Handling of Record Transfers:
  • Best practice is for KSM to send client workpapers and tax returns directly to the client, allowing them to share the information with the successor firm at their discretion.
  • This includes sending copies of tax returns (included K-1s) to other third parties. We should provide records to the client, and they should distribute their returns at their discretion. We should not send anything directly to a 3^rd party unless specifically approved by Claire Sheets or Madison Will. 
• Providing Information Directly to the Successor Firm:
  • If the client prefers that KSM provides records directly to the successor firm, the following requirements must be met:
    • An access letter must be signed by the client and successor firm before any records are released.
    • This access letter should be prepared by the Tax Support Coordinators and sent to the client and successor firm electronically for signature.
    • Both the successor firm and the client must sign the access letter before any records are shared.

For any questions or clarifications, please contact Claire Sheets.