What accounting information I need to take over one company's accounts from the previous accountant?

by Anja
(Toronto, Ontario, Canada)

I am planning to takeover my friend's business account from his previous accountant, I don't know which information I need to set up my friend's company account in my system/books. My friend has been with the previous accountant for 5 years and he did entire accounting , including tax filing, HST filing etc.

Please help me.

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Hi Anja! What a great friend you are!

What I would suggest is to get your friend to ask his previous accountant for a general ledger printout for the previous year or a trial balance at least for year-end (usually Dec 31). This would give you all his accounts with balances. You could then use these numbers as beginning balances for you to set up a general ledger in whatever system you're going to use.

Also try to get a copy of last year's tax return. You'll need this as a reference in completing this year's return.

Any accountant should give their clients copies of financial statements - either throughout the year if providing bookkeeping services, or at least at year-end if only preparing tax returns. So see if there's a Balance Sheet or Income Statement in your friend's files. Then use those accounts and balances as your beginning balances.

I'm not sure what kind of an accounting system you're planning on using...if you're using QuickBooks I can tell you how to enter those balances.

Hope that helps!

Kathy
www.small-business-accounting-info.com

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Jan 24, 2014
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Providing book keeping services
by: Anonymous

Thanks Kathy,
I am planning to use quick books and I don't have much experience with providing book keeping services to clients. Please help me with this.
Tnanks again for your help.

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