How is cloud accounting software handed over when a bookkeeping firm is sold?

Most client books sit in the client’s own subscription, with the firm invited in as a user, while the firm keeps a practice or partner account that organizes them all. A sale therefore moves several different things in different ways. Sort them before closing, so that no client discovers a lapse. The general answer on transferring software licences covers the buyer’s own tools.

Client ledgers sit with the clients

The seller may not be able to simply hand over client files, so ask your lawyer what the client agreements allow. Each client keeps their subscription, and the buyer is added as an adviser once the client agrees. Ask your lawyer how consent and privacy should be handled. Keep a list of every client and its status.

The practice account and admin roles

The firm’s practice or partner account, its subscriptions and its admin roles may be transferred or recreated under the agreement. Check each provider’s terms with the seller. Add the buyer as an administrator before the seller is removed, so that nobody is locked out.

Bank feeds and app connections

Bank feeds, payroll links, receipt capture and other apps are tied to specific logins. Make a list of each connection, who set it up and whether it will survive the change of user. Test a few before the full cut-over.

A simple cut-over checklist

• List every client, its software and its current user access.
• Get each client’s agreement to the new adviser in writing.
• Add the buyer’s users, test them, then remove the seller’s.
• Check bank feeds, payroll links and app connections.
• Change passwords and recovery contacts on shared tools.

Work through it client by client, and keep the seller available for questions while it is done. See also the guide to selling a bookkeeping firm.