The first 100 days after buying an accounting firm should protect continuity before pursuing transformation. The buyer’s immediate job is to know which client obligations are due, who owns each task, whether the firm can access the necessary systems and records, and where a missed handoff could harm a client.

Treat 100 days as an operating horizon, not a legal deadline or a reason to delay urgent action. Stabilise in days 0–30, verify the inherited practice in days 31–60, and make controlled improvements in days 61–100. Major system, pricing or staffing changes should follow evidence, not acquisition-day enthusiasm.

Day 0: open a buyer-controlled transition room

Before the first trading day, convert the completion checklist into a live control register. For every material item, record the owner, due date, evidence, dependency and escalation route. Cover client deadlines and authorities, staff, work in progress (WIP), debtors, billing, bank access, software, data, insurance, premises, suppliers and unresolved deal obligations.

Legal completion does not prove operational access. Test administrator credentials, backups, lodgment software, document management, email, telephones, banking and payment authorities. Reconcile the purchased client list to current engagements, jobs, recurring invoices and debtor balances. Record exceptions rather than accepting “the team knows” as a control.

Use the seller’s handover plan as one input. The buyer should own the register, chair short transition meetings and maintain a decision log. Reserve the seller’s limited time for introductions, exceptions and relationship knowledge that cannot be recovered from files—not routine approvals that the new firm should already control.

Days 1–30: protect deadlines, access and trust

Build a 120-day obligations calendar even though the management plan covers 100 days. Include tax returns, activity statements, payroll, superannuation, ASIC work, financial statements, client meetings, recurring advice and promised deliverables. Validate the calendar against the ATO client list, practice-management system, job files and staff knowledge; investigate every mismatch.

Client authority cannot simply be assumed. The ATO says entities with an ABN other than sole traders generally need to nominate a registered agent when engaging a new agent, and the agent has 28 days after nomination to add the client before it expires (ATO). Segment clients by authority status and approaching deadline, give them clear instructions, and track successful access rather than emails sent. Ask the ATO or an adviser how the rules apply to the transaction structure and client type.

Do not treat deferrals as the integration plan. ATO guidance says deferrals are for eligible obligations affected by exceptional or unforeseen circumstances and distinguishes agent-assessed, ATO-assessed and new or re-engaged client requests (ATO). Identify genuine cases early, retain supporting evidence and escalate before due dates where possible.

Run four parallel controls:

  • Clients: confirm primary contacts, active scope, next commitment, authority, fee terms and unresolved complaints. Prioritise high-dependency and deadline-sensitive relationships for personal contact.
  • People: meet every team member, confirm reporting lines and near-term capacity, and identify work that only the seller or one employee can complete. Avoid promising employment outcomes that have not been legally settled.
  • Cash: approve who can issue invoices, credits and write-offs; age WIP and debtors; and compare receipts with the acquired opening balances. Keep purchase-price adjustments separate from post-completion trading.
  • Security: reset privileged access, remove obsolete accounts, enforce individual credentials and test recoverable backups. The OAIC recommends access security and monitoring so personal information is available only to authorised people, including review of audit logs (OAIC). The ACSC identifies multi-factor authentication, software updates and backups as starting controls for small businesses (Cyber.gov.au).

Days 31–60: verify how the practice actually operates

Once immediate continuity is under control, test the acquired operating model. Sample completed and open jobs by service line. Compare engagement terms, promised timing, recorded time, review evidence, write-offs, billing and final output. This reveals where margin, quality or client expectations differ from the sale model.

The Tax Practitioners Board’s Code covers confidentiality, competence and reasonable care and now includes obligations concerning proper client records, quality management systems and keeping clients informed (TPB). Map those obligations into the buyer’s own procedures. Where applicable, APES 320 describes quality-management elements including governance, client acceptance and continuance, resources, engagement performance, communication, monitoring and remediation (APESB). Advisers should confirm which professional standards apply to the firm, its memberships and services.

Review staff arrangements against the transaction documents and payroll. A transfer of business can require the new employer to recognise prior service for many entitlements, while treatment of annual leave, redundancy, long service leave and other matters depends on the circumstances (Fair Work Ombudsman). Have an employment adviser reconcile employee offers, recognised service, accrued balances and the settlement allocation rather than relying on a spreadsheet total.

By day 60, close easy gaps and assign owners to the rest. Examples include missing engagement letters, dormant user accounts, unbilled WIP, recurring invoices without current scope, clients not yet linked, weak review evidence and knowledge held by one person.

Days 61–100: improve deliberately

Only now should the buyer accelerate changes. Rank initiatives by client risk, regulatory importance, financial benefit, implementation effort and reversibility. A software migration may ultimately be sensible but is dangerous during a lodgment peak if authorities, data mapping, integrations, templates and staff training are incomplete.

Pilot changes on a limited client or service group. Preserve source data and audit trails, define a rollback path, assign acceptance criteria and monitor errors. Sequence client communications so the firm can explain what is changing, what is not, and where clients should send information or questions.

Use the remaining seller access to close named knowledge gaps. Each handover session should produce an artefact: a contact note, process map, decision history, introduction outcome or documented exception. “Available by phone” is not a substitute for captured knowledge.

Keep a small, decision-useful scorecard

Review a short scorecard weekly, comparing actual performance with the baseline and separating inherited backlog from new activity.

Control area Useful 100-day measures
Deadlines Obligations due, completed, blocked and at risk; authority gaps by due date
Service Jobs on time, review exceptions, rework, complaints and unresolved client promises
Clients Priority contacts completed, departures, scope confirmed and retention risks with owners
Cash Billings, collections, aged WIP, aged debtors, credits and write-offs
People Capacity by service line, overtime, leave exposure, vacancies and key-person dependencies
Controls Privileged accounts, failed backups, security incidents, open quality issues and overdue remediation

Metrics need definitions. A “contacted” client should not mean an automated email, and “retained” should not mean merely present in the database. Keep an exceptions narrative beside the numbers so management can act.

What should exist by day 100?

The buyer should have a verified client-and-obligations register, working authorities, reconciled WIP and debtors, confirmed employment settings, controlled system access, a tested deadline process and a prioritised improvement backlog. There should also be a clear record of unresolved risks and who is responsible for each.

This is a management framework, not a substitute for the acquisition agreement or specialist advice. Lawyers, employment advisers, accountants, tax advisers, cyber specialists, insurers and software providers should address matters within their expertise. If the evidence shows service continuity is at risk, slow discretionary change and protect clients first.

Sources

Disclaimer

This article provides general information only. It does not constitute legal, tax, accounting, financial, credit, valuation or other professional advice. Circumstances differ. Obtain advice from appropriately qualified advisers before acting or entering a transaction.