Step 1 — Choose the Right Time to Switch
Timing the transition correctly prevents reconciliation gaps and avoids handing over a half-finished BAS period. The best transition points in Australia:
| Transition Point | Why It Works | What to Watch |
|---|---|---|
| 1 July — start of financial year | Clean year-end break, no mid-year splits | Ensure 30 June accounts are fully reconciled first |
| After quarterly BAS lodgement | No half-finished GST period handed over | Confirm BAS is lodged AND ATO has accepted it |
| After monthly BAS lodgement | Same as above, shorter wait | Same — confirm lodgement and bank reconciliation to date |
| End of calendar month (non-BAS) | Clean break, bank feeds reconciled | Check payroll is up to date and no outstanding pay runs |
| Mid-month or mid-quarter | ⚠️ Avoid — creates split-period reconciliation headaches | Only do this if there is an urgent reason (e.g. bookkeeper quit suddenly) |
Step 2 — Notify Your Current Bookkeeper
Give your current bookkeeper 2–4 weeks written notice. Check your engagement letter for any notice period clause — most bookkeepers operate month-to-month but some have 30-day notice terms. In your notice, request:
- A bank reconciliation to date — all accounts reconciled and cleared to the date of handover
- All outstanding BAS periods completed and lodged before their last day
- Payroll year-to-date summary — all employees, gross pay, tax withheld, super, and STP figures reconciled
- A written chart of accounts explanation for any unusual or custom accounts
- A list of any recurring manual journals they process monthly and why
- Any outstanding or unresolved issues they are aware of (disputed invoices, unexplained transactions)
- Return of any physical documents or source files they hold
Step 3 — Sign the NDA with Your New Indian Firm First
Before granting your Indian firm access to your Xero or MYOB file, two documents must be signed:
- NDA / confidentiality agreement — committing them to not disclose your financial data to any third party
- Engagement letter — scope of work, deliverables, turnaround times, pricing, and data handling policy
Do not share access before these are signed. A reputable Indian firm will have these ready to send before onboarding begins. If a firm is reluctant to sign an NDA before accessing your data, treat this as a red flag. See our full hiring guide for what to look for in an Indian firm.
Step 4 — Prepare Your Xero or MYOB File for Handover
Handing over a clean file dramatically reduces your new firm's setup time and the risk of errors in the first month. Before granting access:
- ☑ All bank accounts reconciled to the handover date — no unmatched transactions
- ☑ No uncoded transactions older than 7 days
- ☑ All BAS periods to date filed and ATO-accepted
- ☑ Payroll YTD figures reconciled — STP year-to-date matches payroll summary
- ☑ Accounts payable — no supplier invoices entered but not paid or coded
- ☑ Accounts receivable — outstanding invoices list is accurate and aged correctly
- ☑ Inventory (if applicable) — stock on hand balance matches physical count
- ☑ Fixed assets register up to date (if applicable)
If your file has issues (months of uncoded transactions, multiple unreconciled accounts), be upfront with your new Indian firm about the backlog. Most firms charge a one-time backlog cleanup fee — budget A$200–A$600 depending on severity — to bring the file to a clean starting point.
Step 5 — Grant Access and Brief Your New Firm
- Invite via Xero or MYOB user invitation — Settings → Users → Invite a User. Assign Advisor role. Never share your own login credentials.
- Schedule a 45–60 minute onboarding video call — walk through your chart of accounts, how you code common transactions, any industry-specific GST treatments, and your payroll setup
- Arrange a handover call with your outgoing bookkeeper (if they are cooperative) — even 30 minutes saves significant time
- Share your BAS lodgement calendar — due dates so they can plan their work schedule around ATO deadlines
- Agree on communication method — email for routine updates, WhatsApp or video call for urgent issues
- Set the first deliverable date — typically the first bank reconciliation and monthly report, due within 7 days of month end
Step 6 — Remove Your Old Bookkeeper's Access
Once the handover is confirmed complete and you have reviewed the file with your new firm:
- Xero: Settings → Users → find their name → Remove User. Immediate effect.
- MYOB Business: Settings → Users → find their email → Remove. Immediate effect.
- Hubdoc or Dext: If they had access, remove them from those platforms too
- Bank accounts: If they had read-only bank access (some bookkeepers request this), revoke it through your banking portal
- Send a brief email confirming the end of the engagement and thanking them for their service — keep it professional
What to Expect in the First Month
The first month with any new bookkeeper — local or Indian — involves a learning curve. Realistic expectations:
- More questions than usual — your new firm will ask about unusual transactions, your preferred coding, and any industry-specific rules. This is normal and necessary. Answer promptly and document the answers so the same questions do not repeat
- A file review report — a good Indian firm will send you a brief summary of what they found when they first reviewed your file — any discrepancies, unusual accounts, or areas needing clarification
- First reconciliation may take longer — allow up to 2 weeks for the first month rather than the standard 5 days
- Steady state from month 2 — by the second month, the routine is established and turnaround times normalise
For more on what a well-structured Indian bookkeeping engagement looks like, see our ATO compliance guide and our savings guide.
Written by Sharma Jyoti, CA (ICAI). We have onboarded Australian clients who previously used local bookkeepers — we provide a structured handover process, file review report, and a clear first-month deliverable schedule. Start your transition →
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