Is the client account reconciled?

The client account is an important part of a letting business. Unfortunately, some agents are unscrupulous in the way they use money in the client account. There have even been examples of letting agencies using client monies to pay business costs, including wages.

Misuse of client funds is a serious matter and can lead to a prison sentence, so any buyer will want to assure themselves that the client account is in good order and that no funds are missing. You can expect any buyer to have an accountant conduct an audit of the client account as part of the due diligence process.

You can expect any buyer to have an accountant audit the client account. Make sure you have done one first.

In all likelihood you will be conducting regular internal audits of client account funds. If not, then make sure you do one before you decide to sell, so that you know any audit will not identify problems.

Of everything on this list, this is the one where a surprise does the most damage. A shortfall found by the buyer’s accountant, rather than disclosed by you, changes how everything else you have told them gets read.