Checklist for closing down an Accounting practice

[Anonymous]

Hello all,

I am helping someone close down their accounting practice and would like to get some input on best practices and a checklist of sorts for steps to take.

It’s a bit complicated in that I was brought in to help with the accountant/husband and wife move from their home (and home-office) of 50+ years into a Continuing Care Community and then the work was going to transition into DMM work for the wife who never had to handle any of the finances. The accountant had in preparation for this already informed clients and his assistant that the office will be closed as of December 31st. So they were in the process of doing the steps necessary to shut it down.

However the move was last week and the husband/accountant ended up in the hospital on a ventilator and it unlikely he will be able to participate in any of the next steps. I am aware of the IRS checklist for shutting down a business but here are a few specific questions:

How long does an accounting practice need to keep client records after closing the business?

Are there any certified letters that need to be sent informing vendors, clients that the business is closing or since the accountant said before that he already communicated with his clients that he was closing his business is that enough? (And I can’t ask him if these were verbal conversations, or emails to the clients or more “official” certified letters?)

There is one client who still owes $13,000+ from 2017 and was wondering of steps to take to see about getting payment for that?

These are just a few specific questions given what I uncovered at the office yesterday, but please feel free to chime in with any checklist of things to do to close down an Accounting Business. It would be appreciated.

Thank you in advance for any information.

Sincerely,

Alix Longfellow

[Anonymous]

One of my first clients asked me to help her close her deceased husband’s law practice. She used a business attorney for all procedural advice and I would suggest the same in this circumstance. The wife should contract with a business attorney with experience in closing an accounting business. I imagine that clients need formal notification to chose whether their documents are returned to them or destroyed. While it may be different for a law practice than an accounting practice in terms of regulations, I imagine there is also a business courtesy in doing so. The AICPA (the CPA professional organization) may have some resources for you as well. Good luck with this important task!

[Author]

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