If you’ve ever started working with an accountant and been asked for ID, company details or a breakdown of how your organisation works, you’re not alone. This is part of something called due diligence. It sounds technical, but it’s really just a set of simple checks that accountants are required to carry out when taking on new clients.
We know it can feel a bit formal, especially for small businesses or charities, so here’s a straightforward explanation of what it means and why we do it.
What is due diligence?
Put simply, due diligence is about confirming who we’re working with and understanding what you do. It’s a legal requirement under anti-money laundering regulations, and every regulated accountant in the UK is expected to carry out basic checks as part of good practice.
This applies whether you’re running a charity, a small business, or just getting started as a freelancer.
Why does it matter?
Due diligence isn’t about mistrust. It’s about keeping everyone safe. These checks help reduce the risk of fraud or financial crime, and they make sure we are following the rules set by our regulators.
It also helps us support you better. If we understand your setup, funding sources, and structure from the start, we can give advice that fits your situation.
What does it involve?
Here’s what we usually ask for:
- A form of ID, such as a passport or driving licence for each director (or trustee)
- Home addresses of directors (or trustees)
- For organisations, things like your charity registration, governing document, or company details
- A short explanation of what your organisation does and how it’s funded
- In most cases, we will expect to contact your previous accountant for clearance, as well as practical handover
We keep all of this secure and confidential. It’s just about building a clear picture of who you are and how we can work with you.
It’s not just a box-ticking exercise
Although it’s a legal requirement, we don’t treat it just as an admin task. It’s also a chance to make sure your organisation is set up properly and that we’re giving you the right support. If there are gaps in your paperwork, we can help you fix them early on, before they cause any problems. It also should reassure you that we take our duties to help you stay on track seriously.
Our Approach
We do our best to keep the process simple and clear. If you’re ever unsure about why we’re asking for something, we’ll explain it. As part of the process we use an electronic ID verification tool, which helps to keep your personal data secure. We don’t currently charge a fee for onboarding and absorb the cost of the process. For us this is just one part of running a responsible practice and keeping everything above board.
